The global revenue-based financing market size is projected to grow at a CAGR of 48.50% between 2025 and 2034. The major drivers of the market include rising demand for equity-based financing alternatives and provision of flexible repayment structure.
Key Trends in the Market
Revenue-based financing, often known as royalty-based financing, refers to the method of raising capital for businesses. The investors, in exchange for their investments, receive a percentage of the business’s ongoing gross revenues. The investors continue to receive a share of the income of the business, until the previously agreed upon amount has been paid.
- Business availing revenue-based financing gain capital without losing equity or incurring interest. The increasing appeal of revenue-based financing to companies who are, in the midst of launching a new product, require funding for a large-scale marketing campaign, and are looking to hire additional salespersons is aiding the revenue-based financing market growth.
- Increasing number of investors are backing this type of financing as there is potential for substantial revenue generation with relatively low risks. Moreover, innovations in technology are allowing real time monitoring of businesses, aiding in substantially bringing down the percentage of non-performing assets.
- This financing model is used by oil investors to finance oil and gas exploration and is recently being adopted by the technology sector, specifically by companies involved in providing tech services, SaaS, digital media, and software, among others.
Global Revenue-Based Financing Market Analysis
Global Revenue-Based Financing Market Report and Forecast 2025-2034 offers a detailed analysis of the market based on the following segments:
Market Breakup by Enterprise Size
- Micro Enterprises
- Small-Sized Enterprises
- Medium-Sized Enterprises
Market Breakup by End Use
- BFSI
- Consumer Goods
- Energy and Utilities
- Healthcare
- IT and Telecom
- Media and Entertainment
- Others
Market Breakup by Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
Market Share by Enterprise Size
Small-sized enterprises are anticipated to account for a significant revenue-based financing market share as various small-sized enterprises are looking into alternative financing opportunities, that do not require raising equity and have flexible repayment schedule. The repayments are usually based upon actual revenue generation rather than revenue projections. Revenue-based financing is also suitable for small businesses on the cusp of expansion and have a high potential for future revenue generation.
Market Share by Region
North America is expected to account for a significant portion of the market over the forecast period. This growth can be attributed to the strong presence of various major market players in the region. Additionally, revenue-based financing continues to gain traction among e-commerce startups, small and medium enterprises, and direct-to-consumer brands, among others. Moreover, the easy availability of revenue-based financing as compared to equity financing is boosting the revenue-based financing market demand in North America.
Competitive Landscape
The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the revenue-based financing market, covering their competitive landscape and latest developments like mergers, acquisitions, investments, and expansion plans.
Decathlon Capital Partners
Decathlon Capital Partners is known for providing revenue-based funding to growth-oriented companies and businesses seeking a lower-cost and smarter alternative to traditional equity financing solutions. Decathlon is headquartered in Utah, United States and was founded in 2010.
Lighter Capital, Inc.
Lighter Capital, Inc. is a revenue-based financing lender that provides capital to small technology companies. The company helps tech entrepreneurs to expand their business by providing them access to non-dilutive financing without giving up board seats or equity.
Uncapped Ltd.
Uncapped Ltd. is a revenue-based financing provider, enabling founders to raise growth capital without equity or interest. Uncapped allows business founders to have access to flexible and fair financial solutions.
Other market players include SaaS Capital, Uplift1 GmbH, GetVantage Tech Pvt. Ltd., Clearco, Outfund, re:cap Technologies GmbH., and Viceversa S.r.l., among others.