- Too many investment and accelerators models built around getting funded by classic VCs (be it VC equity, debt or a hybrid of the two). Investment terms suit a multiple rounds of VC raising, but aren’t really aligned with the way of building businesses that most founders prefer. There is a significant lack of source of capital that is aligned with founders who want to build a healthy, sustainable, profitable business.
- Revenue-based funding requires no equity to be sacrificed by a founder and it could be a solution unless it takes the form of another black-box 'computer says no' type of approach. There needs to be a revenue-based funding with the human oversight to see the founder/business behind the numbers (MRR, churn etc.) and also work out a truly appropriate solution for the founder's need.
Attempting to solve the above problems we have created EpsiFund https://epsifund.com as a tech-enabled revenue-based funding solution with a human touch. To begin with we take a look at online businesses' key data sources to estimate revenue, marketing and sales efforts, as well as, general financial health. This part of the process is data-driven and we automatically underwrite the risk and offer a few funding options. The process doesn't stop at this point though. We go above and beyond to understand the business and work out a solution that would suit its needs. We are still in Beta and currently focusing on Shopify App Store ecosystem, having helped a few Shopify Devs to fund their next feature release, App add-ons developments and boost revenue via Ads. Check us out and let us know if we can help.