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Tomas Marcinkus
M&A | Private equity | Venture Capital | Business development
Tomas Marcinkus is a highly skilled and well-educated individual with a passion for technology and innovation. With a degree in Computer Science, Tomas has built a successful career in the tech industry, working in various roles such as software development, project management, and IT consulting. He has a strong understanding of programming languages such as Java, Python, and C++, and is proficient in database management and system administration. Tomas has a keen interest in developing cutting-edge software solutions and staying up-to-date with the latest industry trends. When not at work, he enjoys spending time with his family, reading books on technology and entrepreneurship, and traveling to new destinations around the world.
Highlights
#5. Revenue-Based Financing Market: Supply Side
Revenue-based financing market is still a relatively small asset class compared to other forms of capital but is growing very rapidly. According to Verified Market Research, the Revenue-Based Financing Market size was valued at USD 2.3 billion in 2022 and is projected to reach USD 153.95 Billion by 2030, growing at a CAGR of 59.7% from 2023 to 2030
Quite a significant number of financiers focus on short-term financing, providing funds for e-commerce or working capital financing for the period of 6-12-18 months. Other providers such as Lighter Capital and Round 2 Capital Partners make the capital available for significantly longer periods, having investment horizons of 3-6 years.
In Europe, Round2 Capital Partners became the leading provider of long-term revenue-based financing, with the recent closing of their Fund II dedicated to supporting European scale-up companies, primarily in SaaS verticals, but also others with recurring revenue models.
Reports and Data list the following players as major providers worldwide, most of which are based in and focused on the US market: · Capria Ventures LLC · Bigfoot Capital · Decathlon Capital Partners · GetVantage · Ken Capital Technologies · Sabine Capital Partners · SaaS Capital · Uncapped Ltd. · Uplift1 · Earnest Capital (now Calm Company) · Flexible Capital Fund · Feenix Venture Partners · Flow Capital Corp · Fledge · GSD Capital, LLC · Founders Capital Partners · Kapitus · NGP Financial Planning · Lighter Capital
If you dig deeper you will see that this list is certainly far from exhaustive, also some of the names seem to be not relevant [anymore], but it is good as a starter for someone wanting to research the landscape further. Enjoy.
#revenuebasedfinancing #startupfunding #scaleups
- Revenue-Based Financing: Old Technique, New Name
I continue my mini- discourse on Revenue-Based financing with the aim of shedding light on this financing instrument and asset class, which is still little known but is growing in importance and popularity, especially among companies with predominantly intangible assets and within the knowledge economy or e-commerce.
Revenue-based financing is an old form of finance that has been used in international trade for centuries, dating back to at least the Medici’s. It is based on a company's revenue rather than net profit, which made it easier to define and harder to manipulate in the past, before the advent of modern accounting standards and audits.
Variations of this financing model have been used in numerous industries under different names such as royalty-based financing, accounts receivable financing or invoice financing. This form of financing has been popular in industries such as oil and gas and film industry in the past, and has also found a niche in drug development under the term "royalty-based financing".
But it is new to see lenders focusing on software companies. According to Lighter Capital, revenue-based financing (RBF) was first used to fund tech startups in the 1990s, but it only gained popularity as a financing tool for "new economy" companies in this millennium. In the early 2010s, a number of alternative financing platforms specializing in providing revenue-based financing to companies began to emerge in the US.
#revenuebasedfinancing #techinvesting #scaleups
