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RBF vs Venture Debt vs Equity: Cash Cost and the Cost of Ownership

Lesson 6 of 815 minLab

This lesson is part of the course

In this lesson

You compare three ways to raise USD 2 million by cash cost plus the value of the ownership given up at a USD 60 million exit, and find the exit value at which equity becomes the more expensive choice.

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Lessons in this course

  1. Revenue-Based Financing Basics: Advance, Cap and Revenue ShareLab13 min Locked
  2. RBF Repayment Schedule with Growing Revenue (Chart)Lab15 min Locked
  3. The True Cost of RBF: IRR on Monthly Cash FlowsLab15 min Locked
  4. Sensitivity to Growth: Faster Growth, Higher Annual CostLab16 min Locked
  5. Venture Debt: Interest-Only Period, Amortisation and WarrantsLab18 min Locked
  6. RBF vs Venture Debt vs Equity: Cash Cost and the Cost of OwnershipLab15 min Locked
  7. Merchant Cash Advance: Factor Rates vs APRLab14 min Locked
  8. Choosing Financing for a SaaS Company: Weighted ScoringLab14 min Locked