Venture Capital Vs. Recurring Revenue Financing
If you’re reading this, congratulations. That means you are likely a business owner looking to take your company to the next level.
Looking for business financing can be an exciting yet anxious time. There are several options to choose from, and there’s no one-size-fits-all solution.
Fortunately, companies like Intrepid Finance & Venture act similarly to a one-stop-shop for all business finance needs. Intrepid currently offers access to several financing methods, including venture capital financing- which is perfect for some, but frankly not for most (more on that in a bit).
The game has now changed with Intrepid’s Recurring Revenue Financing service. With Recurring Revenue Financing, you simply secure business financing by using your recurring revenue. There’s no giving up equity. There’s no feeling forced into a venture capital deal that isn’t right for you. There are no distractions and no long diligence processes.
There’s a reason why this type of financing is growing in popularity.
Every business is unique and requires different financing needs. Hopefully, after doing a deeper dive into Venture Capital vs. Recurring Revenue Financing, you’ll have a better idea of which one is a better fit for you.
Venture capitalists (VCs) are private equity investors that target young companies exhibiting high growth potential. Typically, VCs are wealthy investors, investment banks, or other financial institutions looking to receive significant equity in the company.
Venture capital has its benefits, sure. Business financing from a VC can fast-track a company’s already accelerating growth. Venture capital finance can truly take companies to the next level without burdening them with debt. This is not a business loan or a quick capital loan. It’s financing for an equity stake without the burden of paying back the money. Because VCs are also strictly regulated and vetted, they are trustworthy. Furthermore, VCs often provide more than funding. With the right VC partner, you may also benefit from their business acumen, industry expertise, and access to a whole new network.
However, it is not for everyone and comes with several significant drawbacks.
Why Venture Capital May Not Be For You
VCs look for certain things in companies. Simply put, if your business doesn’t have disruptive potential, innovation, available equity, or rapid growth potential, VCs will not be interested. After all, according to Inc.com, VCs expect to see a return of 10 times their investment in less than seven years. These are aggressive investors not interested in slow and steady growth.
Additionally, venture capital financing can be a risky operation for both the company and the investor. You can compare it to getting married. First, you’re dating, and then you make a big bet on marriage. It hopefully works out but does not always.
VC deals work sort of the same way. Both parties first date, i.e., do their due diligence, and then make a deal, i.e., get married. Just as getting married will forever change your life as an individual, signing on the dotted line with a VC will forever change your business and you as a business owner. These investors will always be looking over your shoulder. Your decision-making autonomy will be forever changed (at least to some degree). Receiving an injection of growth capital in exchange for giving up decision-making autonomy doesn’t always work out. If you feel forced into it or not 100% ready, the results could spell doom. If you don’t feel all-in and prepared to dilute company control, ownership, and full autonomy, this type of financing is not something you want to do.
Moreover, from your perspective as a business owner, the competitive process to receive venture capital funding can also be a real headache. Funding can be scarce and difficult to obtain, not to mention extremely expensive. The entire process can also be distracting and time-consuming for you as a founder. Diverting from the mission at hand can be very disadvantageous for your business. If not cataclysmic.
If it sounds like Venture Capital doesn’t fit what you’re looking for, fear not. It does not mean you’re out of growth capital options. It just means that a different type of funding may be better suited for you.
Intrepid Finance can help with this through its Recurring Revenue Financing services.
What Is Recurring Revenue Financing and How Can Intrepid Help?
In its most simple form, Recurring Revenue Financing is receiving “tomorrow’s revenue today.”
This type of alternative financing can be combined with funding from VCs or angel investors or function by itself. It’s a perfect business financing solution if you’re a growing startup that is generating monthly recurring revenue (MRR). It’s also especially perfect for startup founders who are not yet ready to give up an equity stake in their company. If you want to retain ownership and control of your business and run it for the long term, this infusion of growth capital is what you’ve been looking for.
Only 78.5% of small businesses survive their first year, and 29% of companies fail because they run out of cash. With Recurring Revenue Financing, you’re significantly mitigating this risk. Businesses need capital to do everything from funding business operations to paying employees.
With Recurring Revenue Financing, you avoid cash flow disruption, financial strain, and debt burdens. Not to mention, you keep complete control of your company, and you can secure financing without waiting weeks or months.
Here’s Where Intrepid Comes Into Play…
Intrepid is at the forefront of Recurring Revenue Financing’s growing popularity. Businesses of all shapes and sizes can secure Recurring Revenue Financing via Intrepid through a secure and easy process with flexible terms and no hidden fees.
With Intrepid, you can skip the delusion of venture and crippling debt from unfavorable business loans. You can get paid on your own terms, grow with confidence, and focus more on your business and less on financing.
Give Intrepid a call today and see if Recurring Revenue Financing is right for you.