Revenue-based financing has become increasingly popular in recent years with RBF providers raising over $671m from VC firms in just the last twelve months.
The market has enjoyed a period of sustained growth but as we enter a possible recession lending risk is higher meaning that there may be challenging times on the horizon for many of these businesses.
That being said, for many operating within the sector the remainder of 2023 presents an opportunity and several firms are communicating positive growth stories despite challenging market conditions. Sharing these positive news stories will be key in order to proactively address concerns around the sector’s future and will be critical to reassure stakeholders.
In this article we shine a spotlight on five revenue-based financing companies and how they became leaders in the sector.
Clearco offer a suite of performance financing products and services tailored for founders in all stages of their business journey. Being equity-free, bias-free and hassle-free, this company offers funding to eCommerce businesses and has helped over 7,000 companies across three continents.
What stands out about Clearco is its strong stance for diversity. Clearco has funded 25 times more female founders, seven times more LGBTQIA+ identifying founders and nine times more black founders than the average venture capital firm. This non-bias approach places Clearco as a progressive and leading company within the revenue-based finance sector.
Despite having only launched in 2020, Capchase has sky-rocketed and established themselves as one of the standout companies in the revenue-based finance sector. Capchase was started by founders of various companies all united by a mission to help founders and CFO’s grow their businesses faster. The company does this through its platform offering market insights, community support and non-dilutive funding.
Having recently raised over $400 million in debt financing which will be used to support SaaS startups across the US and Europe, Capchase should be well positioned to not only survive but thrive in this burgeoning industry.
Outfund is a revenue-based finance start-up and the UK’s largest eCommerce investor. Featured in media outlets such as TechCrunch, Sifted and Business Cloud, this company has invested millions into thousands of businesses around the world.
The firm recently raised £115 million in funding and became the largest revenue-based finance provider in the UK. The firm has committed to investing £500m in businesses before the end of 2022 and has increased its lending limit from £2m to £10m per company.
Founded in 2019, Uncapped were Europe’s first revenue-based finance provider and were launched due to frustration with the funding options available to European entrepreneurs at the time. With this businesses model, entrepreneurs can access funding on their terms and spend their time focusing on their business rather than fundraising for it.
The no-equity and no-security approach platform offers flexible terms so no one is caught out by repayments and offers insight tools that entrepreneurs can use for growth opportunities. Recently acquiring specialist gaming lender Sugar, Uncapped is becoming one of the leaders within the revenue-based finance provider sector.
With the mission to create access to simple, flexible and fair finance for small businesses, Liberis has provided finance solutions that are more customized, intuitive and responsive to the ups and downs that can happen with a small business. These solutions are delivered through service and software providers that the businesses already use, giving small businesses the ability and confidence to use finance as a positive tool for growth.
Since being founded in 2007, Liberis has helped over 17,000 businesses access funding, becoming a leading partner for embedded business finance across the US and Europe. Recently partnering with Barclaycard in June, Liberis has the credibility and credentials to truly establish a voice for itself as one of the UK’s leading finance providers.
If your revenue-based funding firm would be interested in discussing how our team of experts could help place you ahead of your competitors, why not get in touch today.