Revenue Based Financing for D2C & SaaS Biz, Translation Services for Netflix, Life Skills for Teenages

Sahil (@sahil071) and Siddharth (@sidbetala) hang out and discuss various ideas on this episode of Business Munchies. We're now actively sharing interesting snippets on Twitter and reels on Instagram. Follow us there to stay updated!

Timeline:
(00:58) - Revenue Based Financing
(22:56) -  Translation Services for Movies, TV Shows on Netflix, Prime Video
(33:54) - Life Skill Courses for Teenagers

Business Ideas

Revenue Based Financing
Capital is an essential commodity to grow a business. The traditional way of growing companies was Debt & Equity Investments. Debt generally comes from Banks, but they obviously don't like to take risks with unproven or unprofitable businesses. Plus putting up collateral, personal guarantees and what not.

The other option is equity. In the recent years, Early stage/Growth equity has become popular thanks to the various Venture capital firms. However, you end up giving up too much equity and it prevents you from building a sustainable/profitable business. This type of equity works for ideas that don't really exist, and if they're successful, they can capture or create LARGE new markets for themselves.

But, this leaves behind businesses that are profitable, but maybe not that can grow exponentially. Think D2C Brands, or SaaS businesses. How do you give them access to capital that prevents them from diluting too much equity?

Enter Revenue Based Financing - This is where you get access to non-dilutive capital that can be used to grow your business and you pay a fixed fee as well as a share from the revenues to pay off your credit line. It's an interesting new lending product and we discuss the various opportunities around this.

Translation Services for Netflix, Prime Video
Last week, we spoke to Abhishek Goyal, Co-founder of Cactus Communications about the large business he has built in the niche of research paper translation. We then applied the same model in the content industry where Netflix, Prime Video and other OTTs are producing so much foreign content that needs to be translated in English and also to other languages. Last year, Netflix had a shortage of agencies who could help them with this and hence had to rely on freelancers. This is an industry growing in double digits, year of year, and hence an interesting place to build a niche business.

Life Skills for Teenagers
Our education system is messed up and it ends up teaching A LOT of stuff that's never going to be relevant in your life and skips teaching essential life skills like Personal Finance, Health & Nutrition, Sex Ed. The idea is simple, can you build a gamified product that teaches teenagers these essential skills?