Meet the new investment model for growing technology companies: TIMIA Capital’s Revenue Financing (also know as Revenue-based Financing or RBF). By combining the best of both equity and debt financing, this dynamic form of funding allows SaaS & knowledge-based start-ups to “pay as they grow”.
For investors, it provides the opportunity to access robust revenue potential. Mutually beneficial? Absolutely! At TIMIA we know that when the interests of entrepreneurs and investors are aligned, that’s when true growth begins.
How does it work?
As with equity, TIMIA Capital investors inject capital into growing companies. But like debt, instead of giving up a proportion of company shares, entrepreneurs simply repay the initial capital (plus a multiple) through a percentage of ongoing gross revenues. TIMIA offers non-dilutive, low friction funding.
The RBF model is nothing new. Pharmaceutical, mining as well as oil & gas companies have long benefited from this type of flexible low-friction financing. What’s new is the tech-savvy financial experts at TIMIA Capital are bringing this quantitative driven deal process to the technology & knowledge-based sectors.
Why it Works
Software-as-a-Service companies – and also medical device companies and subscription-based services – generate revenue that’s recurring in nature and boast high gross margins. These kinds of business models are ideal for the TIMIA Capital offering because repayment is scaled to revenue, which also aligns with the needs of our investors.