The Founders First Capital Partners which is an investment and accelerator firm and provides the revenue-based financing to the businesses which are led by the underrepresented entrepreneurs by operating the underserved markets, now has received a fund of $100 million commitment to develop the operations. The San Diego based investors has raised the debt financing from the Community investment Management which is a larger debt focused impact investment capital. This revenue based model is a fresher one, and there are several startups are now beginning to investigate as a way to accept the non-dilutive fund for startup businesses which perhaps don’t be qualified for the traditional loans.
Companies like new media startup such as The Prepared, that offers several tips on the disaster readiness, utilized the revenue financing as a path to get their own business while the other companies are gradually turning to this financing procedure also – according to the investors from the Lighter Capital. At Founders First Capital Partners, the fresh financing will extend their leading actions to the companies which are already producing between $1 million and $5 million revenue per year. The new program is supposed to begin in January 2020 by extending the footprint of them as a financial services company for the minority founders, and for those who are underrepresented founders. The firm mainly focuses on the businesses which are led by the people of different color, women as well as the military veterans. It also operates the accelerator program for the entrepreneurs that which meet the similar criteria.