#59: Using Royalty-Based Financing for Non-Dilutive SaaS Funding – Vik Thapar

In this expert interview, Vik Thapar of Cypress Growth Capital explains revenue-based financing (RBF) and how it can be very useful for practical SaaS founders. In the last 10 years, Vik and the Cypress team have funded over 50 SaaS and tech-enabled services businesses that have steady recurring revenues and predictable customer acquisition approaches. 

Revenue-based financing is a form of non-dilutive funding that is paid back as a fixed percentage of cash receipts until the investment is paid off. 

Unlike raising funding from VC or other equity investors, founders with $3M-$10M ARR can use RBF as an efficient option to accelerate growth and increase the value of their companies without losing control or diluting their equity.

Royalty-Based Funding Topics Discussed on This Podcast

• What is royalty-based financing and how is it different than other non-dilutive funding options like venture debt or equity funding from VCs?
• When is royalty-based financing useful for practical founders by company size and capital needs?
• When doesn’t royalty-based financing make sense for founders?
• What time frame is typical for founders to use funding to grow and then exit at a much higher price?
• What has happened in the royalty-based financing industry in the last 10 years?
• What’s the typical process and timeline for a founder to receive funding and start paying it back?

Learn more at practicalfounders.com.