Big business empires cannot be built overnight, but the foundation for the same can be laid in a split second of decision and choice with the right element.
Finance is one such element in a business that is capable of doing wonders overnight.
Right from inception and mere survival to expansion and diversification, finance is a major determinant in the equation.
The startups usually face a lot of adversities in the process of raising funds and even more problems with managing them properly and, above all, giving away a good share of the equity ownership.
This has proven to be highly dissatisfying and demotivating for a lot of entrepreneurs.
As a wonderful solution to this issue, GetVantage has come up with the idea that is intended to be the core of this piece.
The story of GetVantage
GetVantage is the brainchild of Bhavik Vasa and Amit Srivastava, two Mumbai-based entrepreneurs.
The goals of the startup were well defined, and with a clear and unique idea that could revolutionize the startup ecosystem, GetVantage started its journey in 2019.
GetVantage encouraged and promoted the idea of a completely revenue-based financing setup within the startup ecosystem where the investors will be provided with a respective share of the revenue generated by the startup instead of providing them with a share of equity ownership.
In this way, the founders will not lose any of their ownership rights and will be able to function freely without much interference from the stakeholders.
It will further reduce or even eliminate the chaos and confusion revolving around the top management.
On the other side, the investors who are provided with a good portion of the revenue, on the basis of the investment made, will be receiving a regular income, which gets better when the company prospers gradually.
In short, undoubtedly, this creates a win-win situation for the parties participating.
What GetVantage is doing
From the words of the founders, it is precise that the core idea behind this setup is to achieve a bigger goal – bringing financial democracy to the fundraising in the startup ecosystem.
Many promising startups with huge potential have somehow failed, or their growth is regulated by the interference of the investors who drift the startup away from the actual realization of its goals.
The founders are left helpless as raising funds itself being a herculean task, feeling the ground beneath their feet getting washed away.
The new revenue-based financing setup is gradually gaining more admirers and supporters.
GetVantage is making use of a well-built platform to analyze the potential of the startups in making a good turnover in the upcoming years.
This ML-based DS system is a reliable one in determining the financials of the startups, which are at their growth stage for the next few years.
The system that GetVantage is bringing into this equation is much faster than the older methods and hence can allot funds to the startups within a few days of time.
The financial projections of the startups need to be cross-checked and verified and are entered into the system, which automatically delivers the revenue-generating potential of the startup in the near future.
GetVantage begins its investments at a rate of 6% of the total revenue generated, comparatively not a big deal, with the amount of freedom exercised by the founders.
The future of revenue-based financing
Although the whole idea of revenue-based financing appears to be more appealing and compelling, it does possess an equal amount of risks involved in any type of investment.
The whole set of operations completely rely on the numbers generated by a computer, and the business does not work in that way.
There are other factors that need to be considered, which may affect even the day-to-day operations of the business.
Despite the revenue-based financing is a great idea and a wonderful replacement for traditional fundraising, it needs more upgrades and additions to make the investments as less risky as possible.