Revenue-based financing is on the rise, at least according to Lighter Capital, a firm that doles out entrepreneur-friendly debt capital.
What exactly is RBF you ask? It’s a relatively new form of funding for tech companies that are posting monthly recurring revenue. Here’s how Lighter Capital, which completed 500 RBF deals in 2018, explains it: “It’s an alternative funding model that mixes some aspects of debt and equity. Most RBF is technically structured as a loan. However, RBF investors’ returns are tied directly to the startup’s performance, which is more like equity.”
Even as Quibi, the short form video platform from Jeffrey Katzenberg’s WndrCo, reportedly looks to raise another $1 billion, rival service Fiction Riot continues to steadily build out its pipeline of short form serials.
The Los Angeles-based company has already launched a beta version of its streaming service, Ficto, and yesterday announced a host of new shows that will appear on the app later this year.
Ficto is bringing to market adaptations of bestselling books and original productions which will be released with theatrical films and has plans in the pipeline for other forms of scripted and unscripted entertainment.