Jay Batson on Revenue-Based Finance

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By Sal Daher. Discovered by Player FM and our community — copyright is owned by the publisher, not Player FM, and audio is streamed directly from their servers. Hit the Subscribe button to track updates in Player FM, or paste the feed URL into other podcast apps.

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“So, there's been a hole in the market for that kind of company that's going to be a great company that's not venture-scale.”

Repeat founder and super angel Jay Batson talks about his new passion: Revenue-Based Finance. He likes the possibility it opens up for startups that are great but not quite venture-scale. Learn what RBF does for founders and investors.

Highlights include:

  • Sal’s Intro
  • Jay Batson’s Bio
  • Acquia & Drupal
  • Revenue-Based Finance Is Introduced
  • The Debt Model vs. The Equity Model
  • “Well, the problem is, there's kind of a hole in the middle, because banks don't like to take risks that startups pose.”
  • “So, venture capital is great if your company is the kind of company that will provide large capital gains to the investor.”
  • “…venture investors tend to say, "Is this a company that could create a billion-dollar company?"”
  • …"This isn't a venture-scale company,"…
  • “So, there's been a hole in the market for that kind of company that's going to be a great company that's not venture-scale.”
  • Wistia as an Example of a Great Company that’s Not Venture-Scale
  • Being Venture-Scale Means You Have to Grow at All Costs
  • “So, the investor makes money by the entrepreneur's business generating the revenue to provide the investor the returns; the entrepreneur retains ownership of the company during the duration.”
  • “…your returns that you see as percentages on your money, are really going to be defined on how fast the entrepreneur repays you.”
  • “It's not venture-scale, but it's going to be a fine company, thank you very much, but it needs an influx of cash to help grow the go-to-market.”
  • “...we want RBF to be the kind of thing that's notable and well-known for something that people do in Boston.”
  • Sal Talks About His Investment in Gelesis
  • Jay Batson and Sal Discuss Various Aspects of the Current Crisis and How Startups Might Respond
  • “…this won't be the first time you've had to embrace the suck, you know? It's kind of part of the deal of being a founder and being an entrepreneur.”
  • “And then, I hate to say this, but now's the time to cut costs kind of hard and fast, and this may mean cutting some people. And that's really hard to do.”
  • “It's not even just snagging other companies, Sal, it's snagging customers.”
  • “…the things that are happening in the stock market in terms of valuations are probably going to happen to you.”

128 episodes