Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Revenue-based funding makes a startup investment and pays back the investor at the rate of top-line revenue.

This aligns the investor and founder to the same goal, to create a business and grow sales. 

The higher the sales, the faster the payback to the investors and the higher the compensation to the founders.

Revenue-based funding typically sets the payback rate at 1-3% of top-line revenue.

In revenue-based funding, the investors receive a revenue share until they reach a predetermined payback amount.

This is different from a loan which sets the payout rate regardless of the seasons or cycles within the business. 

Revenue-based funding keeps early-stage investors off the cap table so it’s clean for future investors.

Once the payback amount is reached, the investors are finished and are no longer in the picture. 

It works well for businesses that have recurring revenue and healthy margins.

It’s a good way to reduce dilution for the founders. 


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
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Music courtesy of Bensound

In this episode, Hall welcomes Mike Audi, Co-Founder and CEO of TIKI Inc.

Tiki was founded by Mike Audi and Brian Gagnon at the beginning of 2020 to address fundamental issues in how user data is stored, consumed, and monetized. With decades of experience building massive-scale data-driven solutions, Tiki began with research into the thousands of companies and governments that have tried to regulate data use and privacy but failed. The team at Tiki discovered the need for a transparent user-centric model that put the user securely in control of their data and paid for their data.

Tiki enables users to make effective decisions about their data privacy while getting paid serious money. Users are in control with three powerful features: see your data, control how your data is used, and monetize your data in a secure marketplace with trusted buyers. By making this process seamless for users, Tiki hopes that more users take their data value seriously, take back control of their data, holding big tech and businesses accountable.

Mike is an expert at creating innovative data products for B2C and B2B markets. As co-founder and CTO of Blustream, he built, led, and sold products responsible for billions of user data points into businesses ranging from SMBs to Fortune 500 brands. You have seen him featured as a data expert in the New York Times, Financial Times, CNN, CyberNews, CPO Magazine, and many others.

Mike shares what currently excites but worries him about the data industry, advises entrepreneurs and investors, and discusses what he thinks will be the biggest change in 12 months.

You can visit TIKI at http://mytiki.com, via LinkedIn at www.linkedin.com/company/mytiki/, and via Twitter at http://twitter.com/my_tiki_. 

Mike can be contacted via email at mike@mytiki.com, via LinkedIn at http://linkedin.com/in/maudi/, and via Twitter at http://twitter.com/tiki_mike. 

Music courtesy of Bensound. 

Please subscribe, share, and leave a review.