North America holds a significant market share due to the presence of tech giants such as Meta Platforms (NASDAQ: META) and SaaS businesses in the region. The revenue-based financing market growth is primarily being driven by the rising popularity of subscription-based payments. Consumers are seeking subscription-based payments as this reduces the amount of upfront money that businesses, particularly those in the hardware and SaaS sectors, need to raise.
Reportedly, over 32 revenue-based financing (RBF) organisations in the US manage more than 57 different funds with a combined capital of over USD 4.31 billion. Some of the well-known revenue-based financing companies include Ratio, Capchase, and Gynger.
The growth rate of entrepreneurship creates demand for revenue-based financing to allow them to repay investments over time and retake ownership of their businesses. In the US, 19.2% of US adults aged 18–64 were new entrepreneurs, while 9.2% managed established businesses in 2023.
The easy availability and accessibility of funding also drive the market growth. In August 2023, SaaS Capital, LLC, the leading provider of growth debt to software-as-a-service (SaaS) companies, announced that it granted PAIRIN, a Denver-based social impact technology company, a USD 2.0 million line of credit. PAIRIN uses integrated data, personalised workflows, and case management to support organisations that connect people to resources, education, and careers.
With this new funding, the company aims to pursue an ambitious growth strategy by utilising the insights and expertise that it has gained from its accomplishments in California, Colorado, Virginia, Florida, and Washington, D.C. With this funding, PAIRIN has aimed to effectively link education programmes with workforce needs for the benefit of professionals and students pursuing careers.
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Market Analysis by Enterprise Size, End Use, and Region:
- The market, on the basis of enterprise size, can be divided into micro enterprises, small-sized enterprises, and medium-sized enterprises.
- Based on end use, the market can be divided into BFSI, consumer goods, energy and utilities, healthcare, IT and telecom, and media and entertainment, among others.
- The major regional markets for revenue-based financing include North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.
Key Findings of the Report:
- Reportedly, globally, the median SaaS business grows about 30% annually, whereas the top quartile increases between 60%-70% annually. The escalating growth rate of SaaS businesses creates opportunities for revenue-based financing as it works as an alternative to traditional bank loans without the requirement of collateral.
- Companies offering revenue-based financing solutions can expand their offers by delivering digitalised finance solutions in the market since start-ups and small businesses are incorporating technology into their business models. Technological advancements such as revenue forecasting platforms and alternative financing solutions propel the revenue-based financing market expansion.
- Government initiatives such as the Small Business Credit Initiative, Small Business Innovation Research (SBIR), and Small Business Technology Transfer (STTR) programmes in the U.S. encourage small businesses to expand domestically. Additionally, a government-backed lending programme called the Recovery Lending Scheme (RLS) was created to help UK firms get financing as they seek to expand and make investments. Such initiatives favour the market development.
- An increasing number of investors are supporting revenue-based financing due to the possibility of significant revenue production at comparatively little risk, further contributing to the market expansion.
Key Offerings of the Report:
- The EMR report gives an overview of the global revenue-based financing market for the periods (2018-2023) and (2024-2032).
- The report also offers the historical (2018-2023) and forecast (2024-2032) markets for the enterprise sizes, end uses, and major regions of revenue-based financing.
- The report analyses the market dynamics, covering the key demand and price indicators in the market, along with an assessment of the SWOT and Porter’s Five Forces models.
The major players in the global revenue-based financing market are Decathlon Capital Partners, Lighter Capital, Inc., Uncapped Ltd., SaaS Capital, Uplift1 GmbH, GetVantage Tech Pvt. Ltd., Clearco, Outfund, re:cap Technologies GmbH., and Viceversa S.r.l., among others. The comprehensive report by EMR looks into the market share, capacity, and latest developments like mergers and acquisitions, plant turnarounds, and capacity expansions of the major players.
Key Highlights of the Report
| REPORT FEATURES |
DETAILS |
| Base Year |
2023 |
| Historical Period |
2018-2023 |
| Forecast Period |
2024-2032 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
- Enterprise Size
- End Use
- Region
|
| Breakup by Enterprise Size |
- Micro Enterprises
- Small-Sized Enterprises
- Medium-Sized Enterprises
|
| Breakup by End Use |
- BFSI
- Consumer Goods
- Energy and Utilities
- Healthcare
- IT and Telecom
- Media and Entertainment
- Others
|
| Breakup by Region |
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
|
| Market Dynamics |
- SWOT Analysis
- Porter's Five Forces Analysis
- Key Indicators for Demand
- Key Indicators for Price
|
| Competitive Landscape |
- Market Structure
- Company Profiles
- Company Overview
- Product Portfolio
- Demographic Reach and Achievements
- Certifications
|
| Companies Covered |
- Decathlon Capital Partners
- Lighter Capital, Inc.
- Uncapped Ltd.
- SaaS Capital
- Uplift1 GmbH
- GetVantage Tech Pvt. Ltd.
- Clearco
- Outfund
- re:cap Technologies GmbH.
- Viceversa S.r.l.
- Other
|
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