The short answer is, it depends. But at Novel Growth Partners, our revenue-based financing is designed for early-stage B2B/Enterprise software companies with the following financial characteristics:
- Minimum $500k revenue + near profitability
- 30%+ YoY revenue growth
- Predictable revenue
One of the advantages of RBF is that it is very flexible for many stages of a company. On top of these financial characteristics, you can be a great fit for RBF if you’re a bootstrapped company, you have prior Angel or VC investment, you’re looking for a bridge round, or you’re looking to wrap up your current fundraise. Finally, at Novel Growth, we prefer to work with founders who need operational help and who are seeking capital targeted for revenue growth rather than R&D.