Revenue-Based Investment

Revenue-Based Investment (RBI) is a funding approach where investors provide capital to a business in exchange for a percentage of its ongoing revenue, rather than equity or fixed repayment. The company pays back the investor with a portion of its sales until a predetermined return, often based on a multiple of the invested amount, is achieved. This structure aligns investor returns directly with the company's revenue performance, offering flexible repayments that scale with business growth, making it an attractive option for companies seeking growth capital without giving up ownership or fixed debt obligations.