The revenue base financing startup market is projected to be worth over $42 billion by 2027, according to allied research. Business financing has taken on a new dimension over the years. Startup businesses can now finance their businesses without taking high-interest loans or worrying about equity sharing with investors. Rather, they are charged a specific percentage of the total generated revenue per month.
These revenue-based financing startup firms now play a pivotal role in funding new and existing businesses and are today the most sought-after by startups and businesses needing funds to scale.
Regardless of your type of business revenue base, startup companies have the best funding opportunities to explore.
Hence, we will be looking at some of the best RBF companies. You can check them out and explore the different funding opportunities that can benefit your business.
1. Clearco
Formerly ClearBanc, Clearco is a revenue-based financing company founded in Canada and started operation in 2015. It offers all-round business support to both startups and existing businesses. Especially e-commerce and software companies.
Clearco, within its less than 10 years of operation, raised a total of $698.6 million in 2022, providing software and e-commerce businesses in different countries with funding.
The company funds these businesses, earning up to $100,000 a month in net revenue without requesting equity or stakes, starting from $10,000 to $20 million. Another criteria is that a business applying for funding must be an LLC or, at least, a corporation.
Clearco has funded several businesses in Canada, the UK, the USA, Ireland, and Australia in the last 8 years and opened doors to other businesses in other parts of the world.
2. Re:cap
Founded in Germany in 2021, Re:cap is a new revenue-based financing startup company that provides funding to businesses across Europe. Its funding is targeted mostly at tech businesses and subscription-type businesses.
The company has raised over $111.5 million in all-round funding, which includes both liquidity and growth capital. It helps by providing opportunities for businesses to convert half of their AAR into liquid assets.
Recap has contributed an estimate of $128 million in funding, offering a fixed interest rate on repayments without asking for equity or collateral. The RBF only funds subscription-based business models, in particular.
3. Booste
Booste is an RBF company founded in Poland in 2020 with the principal focus of helping startups across Europe with funding and only requesting 6% on repayments. It offers a flexible repayment option and is targeted mostly at e-commerce.
It raised €12 million in 2021 in different founding series with the motive to expand to the UK and other countries in Europe, though it is currently focusing its expansion plans on the Netherlands and Ireland.
The Polish-based RBF does not only fund but also aims to create platforms to equip businesses with important information and the required tools concerning finances and management.
Within Booste’s first 3 years of operation, it has funded businesses with almost $70 million. This is done by assessing the last six months revenues of applying businesses and thus funding them appropriately. Booste is primarily concentrated on e-commerce businesses and hopes to go beyond.
4. Wayflyer
Founded in 2019 in Ireland, Wayflyer is rated as one of the best revenue-based financing companies in the world. It provides funding to businesses in Ireland, the United States, the UK, New Zealand, Spain, the Netherlands, Belgium, Austria, and Sweden.
The company is currently valued at $1.6 billion and will raise over $150 million for businesses in 2022. It is aiming at using technology and growth to expand opportunities for quality funding for customers. This it is reaching with utmost speed, and most businesses it has raised funds for are in North America, mostly the USA and Canada, with a minority from Austrailia and Europe.
Wayflyer offers a fixed repayment rate and funding between $10,000 and $20 million. Applying startups are required to have a history of at least $20,000 in monthly revenue.
5. Karmen
Karmen is a revenue-based financing company founded in France in 2021 that provides funding to different startup businesses, especially business-to-consumer, software companies, and businesses with a consistent revenue setting.
In 2022, Karmen raised over €22 million, which it used to fund different e-commerce and startups in France. It is mostly targeted at subscription-based businesses with substantial monthly revenues.
Karmen has raised a total of $72 billion for fun businesses. It offers funding to businesses at 405 AAR. Entrepreneurs and businesses are expected to have at least €10,000 in monthly revenue, and interest is fixed without the need for equities.
6. Ritmo
An EU-based, revenue based financing startup company started in Spain in 2021. Ritmo is regarded as one of the best RBF companies in Europe and offers a wide funding opportunity for new businesses. It funds businesses in the following categories: SAAS, gaming development, B2C, and e-commerce businesses
In the seed round, it raised a total of €13.8 million in 2021 and an extra $200 million in debt funds in 2022. The company is aimed at providing funds for more than 2,000 businesses in Europe and some South American countries.
Since its establishment, Ritmo has offered funding totaling $220 million, with funding starting at 50,00 pounds to 3 million pounds for businesses and startups. It offers a fixed repayment interest rate that does not include equities, stock, or hidden charges. Like the others, as an entrepreneur, you need evidence of a minimum of £10,000 in monthly continuous revenue.
7. Outfund
Outfund is an RBF company started in the UK in 2017 and offers funding to e-commerce businesses, software companies, business-to-business companies, and mobile app owners. It is basically available for customers in the UK, USA, Spain, and Austria and has lots of businesses under it.
This RBF raised a net amount of 115 million pounds in 2022. An amount that includes debt fund and equity capital has aided in scaling the growth of several SME in a faster and more cost-effective manner. It is projected to provide 5,000 businesses with over $500 million in a cost-effective style.
Outfund has offered funding of €152 million, with a range of £10,000 to $20 million for businesses. Their repayment interest rate is fixed, and they only offer funding to companies with at least £10,000 of monthly revenue.
8.Silvr
Sivr is one of the most well-known revenue based financing startup companies. It was founded in France in 2020 and offers all-round business funding for startups and businesses in France and several other European countries. Categories of businesses it funds include SaaS, e-shops, e-commerce, and B2C businesses.
In 2021, the company raised over €3 million in seed funding and €130 million in 2022, providing startups and businesses with quick funding for their enterprises. Most companies that have patronized Sivr over the years have seen a 64% growth within 2 months of funding. Again, companies owned by women receive a 29% financing option.
Sivr has provided a net of €133 million in funding, usually starting at €10,000 to a maximum of €10 million, to businesses without requesting equities and offering a fixed repayment plan. Applying businesses are required to show a history of at least €10,000 in monthly revenues.
9. Liberis
A revenue-based financing company established in the United Kingdom in 2007 and offering one of the best funding opportunities to entrepreneurs and businesses It is mainly available for businesses in the UK, the USA, and several other countries in Europe.
In 2022, liberis raised 140 million pounds from BCI and Barclay Bank, which helped them expand their funding services. Additionally, earlier this year, they’d raised a total of €30 million via debt funds in a seed round overseen by the UK’s Silicon Valley Bank.
In total, it has now funded businesses with a total of €430 million, mostly new businesses with 4 months or less of operation. Companies seeking Liberis funding need to show a record of €2500 in average monthly revenues. Liberis is looking forward to expanding its service to Poland and Germany next.
10. Uncapped
Uncapped is an RBF company founded in 2019 in the United Kingdom and rated as one of the best RBF companies. Its operations currently cover only the whole of Europe and focus only on funding businesses in the following categories: subscription-model businesses, e-commerce, SaaS, and B2Cs.
It has raised $26 million through Muoro Capital, which includes both equity exchange and debt funding. The company has witnessed reasonable growth over the past few years. It has served lots of businesses seeking flexible and substantial funding opportunities.
Uncapped, within its few years of operation, has raised €118 million, which usually ranges from €10,000 to €5 million. Entrepreneurs and businesses are mandated to show a history of a minimum of €10,000 in revenue within the last 6 months.
Wrapping up
Revenue based financial startups are changing the game of business funding. Businesses can now benefit from this opportunity without having to worry about equities and accruing loan interest. To apply for funding with RBF companies, it is important that you go through their requirements carefully and weigh your options and opportunities before applying for funding.
