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Investor Connect Podcast

Investor Connect is for investors interested in learning more about investing in startup and growth stage companies. Experienced investors share their experiences and advice with those who are considering an investment into startups and growth companies. It includes a podcast series of interviews with investors to inform others about the process of funding startups as well as a resource list and a discussion board.  

Topics include sourcing, analyzing, and researching companies. Other topics include valuations, terms Sheets, board of directors, board of advisors, due diligence, syndicates, venture capital, angels, angel networks, family offices, crowdfunding, exits, and more.

Investor Connect is a community program. We welcome your suggestions for speakers and topics which you can send to us through the Contact page. No registration is required to use the resources.  Discussion boards are available to post and answer questions about startups and growth company investing through which registration is required.

Investor Connect is a program under the Texas Open Angel Network which is a 501(c3) non-profit dedicated to the education around startup funding.

Disclaimer: Hall T. Martin is the Director of Investor Connect which is dedicated to the education of investors for early stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.

Sep 30, 2021

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