Founded in 2017, Round2 has pioneered Revenue-based finance in Europe: a simple, transparent and flexible instrument by which non-dilutive funding is provided against a small share in revenues until a predefined cap is reached.
Unlike rigid repayment plans of bank loans or venture debt instruments, the repayments are tied to monthly revenue and thus naturally adapt to cash flows. No personal guarantees, no discussion about valuation, no required exit – and you stay in control of your business and its destiny.
Revenue-based finance is a quantum leap forward in the way the growth of digital businesses with recurring revenues is funded. The Round2 revenue-based finance solution is not only a simple, flexible and transparent form of growth funding, it also creates exceptional value for Founders and shareholders without diluting ownership.
Revenue-based finance has become an important part of the funding ecosystem. In the US and Canada there are more than 25 revenue-based finance funds, which have successfully funded hundreds of fast growing companies. Especially suitable for revenue-based funding are SaaS firms as the funding can be built into the stream of recurring revenues.
Founders of Software as a Service (SaaS) companies use various sources of capital through the different stages of the companies’ development. Based on conversations with hundreds of SaaS businesses over the last couple of years, this article provides an overview of how founders of SaaS companies evaluate the alternatives available.