The global revenue-based financing market size was valued at $6.4 billion in 2023, and is projected to reach $178.3 billion by 2033, growing at a CAGR of 39.4% from 2024 to 2033. Revenue-based financing (RBF) or revenue-based investing (RBI) is a financing frequently used by entrepreneurs in conjunction with angel financing. It is a method of raising capital for a business from investors. These investors then receive a percentage of gross revenues earned by the business in exchange for the money that they invested. RBF is largely used by companies such as business-to-business (B2B), SaaS companies, and technology service firms with high recurring revenue. Moreover, this category of firms with subscription-based agreements & long-term contracts largely benefit from RBF, as it requires low collateral and has consistent future revenue to borrow against
Surge in demand among investors to earn more profits from RBF and increase in need for faster & quicker fund raising than conventional banks boost the market growth. In addition, rise in adoption of revenue-based financing by a large number of start-ups & small businesses is a major factor that drives the market growth. However, absence of standardization across the globe and lack of awareness and understanding toward revenue-based financing are some of the factors that hamper the market growth.
On the contrary, rise in adoption and implementation of digital platforms among start-ups and small businesses is expected to present lucrative opportunities for market growth in the coming years. In October 2023, Uncapped, formerly known as a revenue-based finance provider, secured a $216.32 million (£200 million) debt for expanding its offer to the U.S. and European entrepreneurs and businesses. The new debt financing was provided by the New York-based private equity firm Fortress Investment Group.
Segment Review
The revenue-based financing market is segmented into type, enterprise size, industry vertical, and region. By type, it is classified into variable collection and flat fee. By enterprise size, it is divided into large enterprise and small & medium enterprise. By industry vertical, it is segregated into BFSI, IT & telecom, healthcare, media & entertainment, consumer goods, energy & utilities, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Key Findings of the Study
By type, the variable collection segment accounted for the largest revenue-based financing market share in 2023.
By enterprise size, the small and medium-sized enterprises segment accounted for the largest revenue-based financing market share in 2023.
By industry vertical, the IT and telecom segment accounted for the largest revenue-based financing market share in 2023.
Region wise, North America generated the highest revenue in 2023.
The market players operating in the revenue-based financing market include Capchase, Lighter Capital, Clear Finance Technology Corporation, Karmen SAS, Wayflyer, Re:cap Technologies GmbH, Liberis, Outfund, Viceversa, and Flow Capital Corp. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships, which help drive the growth of the revenue-based financing market globally.
Surge in demand among investors to earn more profits from RBF and increase in need for faster & quicker fund raising than conventional banks boost the market growth. In addition, rise in adoption of revenue-based financing by a large number of start-ups & small businesses is a major factor that drives the market growth. However, absence of standardization across the globe and lack of awareness and understanding toward revenue-based financing are some of the factors that hamper the market growth.
On the contrary, rise in adoption and implementation of digital platforms among start-ups and small businesses is expected to present lucrative opportunities for market growth in the coming years. In October 2023, Uncapped, formerly known as a revenue-based finance provider, secured a $216.32 million (£200 million) debt for expanding its offer to the U.S. and European entrepreneurs and businesses. The new debt financing was provided by the New York-based private equity firm Fortress Investment Group.
Segment Review
The revenue-based financing market is segmented into type, enterprise size, industry vertical, and region. By type, it is classified into variable collection and flat fee. By enterprise size, it is divided into large enterprise and small & medium enterprise. By industry vertical, it is segregated into BFSI, IT & telecom, healthcare, media & entertainment, consumer goods, energy & utilities, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Key Findings of the Study
By type, the variable collection segment accounted for the largest revenue-based financing market share in 2023.
By enterprise size, the small and medium-sized enterprises segment accounted for the largest revenue-based financing market share in 2023.
By industry vertical, the IT and telecom segment accounted for the largest revenue-based financing market share in 2023.
Region wise, North America generated the highest revenue in 2023.
The market players operating in the revenue-based financing market include Capchase, Lighter Capital, Clear Finance Technology Corporation, Karmen SAS, Wayflyer, Re:cap Technologies GmbH, Liberis, Outfund, Viceversa, and Flow Capital Corp. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships, which help drive the growth of the revenue-based financing market globally.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the revenue-based financing market analysis from 2023 to 2033 to identify the prevailing revenue-based financing market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the revenue-based financing market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global revenue-based financing market trends, key players, market segments, application areas, and market growth strategies.
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Key Market Segments
By Type
- Flat Fee
- Variable Collection
By Enterprise Size
- Large Enterprises
- SMEs
By Industry Vertical
- BFSI
- IT and Telecom
- Healthcare
- Media and Entertainment
- Consumer Goods
- Energy and Utilities
- Others
By Region
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Spain
- Sweden
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Australia
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
Key Market Players
- Capchase
- Clear Finance Technology Corporation
- Flow Capital Corp
- Kapitus Servicing, Inc
- Karmen SAS
- Liberis
- Lighter Capital, Inc.
- Outfund
- Re:cap Technologies GmbH
- Viceversa
- Wayflyer
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: REVENUE-BASED FINANCING MARKET, BY TYPE
CHAPTER 5: REVENUE-BASED FINANCING MARKET, BY ENTERPRISE SIZE
CHAPTER 6: REVENUE-BASED FINANCING MARKET, BY INDUSTRY VERTICAL
CHAPTER 7: REVENUE-BASED FINANCING MARKET, BY REGION
CHAPTER 8: COMPETITIVE LANDSCAPE
CHAPTER 9: COMPANY PROFILES
LIST OF TABLES
LIST OF FIGURES
Companies Mentioned
- Capchase
- Clear Finance Technology Corporation
- Flow Capital Corp
- Kapitus Servicing, Inc
- Karmen SAS
- Liberis
- Lighter Capital, Inc.
- Outfund
- Re:cap Technologies GmbH
- Viceversa
- Wayflyer
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 354 |
| Published | December 2024 |
| Forecast Period | 2023 - 2033 |
| Estimated Market Value ( USD | $ 6.4 billion |
| Forecasted Market Value ( USD | $ 178.3 billion |
| Compound Annual Growth Rate | 39.4% |
| Regions Covered | Global |
| No. of Companies Mentioned | 11 |
