News Digest: Revenue-based financing market to touch $42.3Bn by 2027
April 23, 2023
The global revenue-based financing (RBF) market is projected to grow at a CAGR of 61.8% to reach $42.34 billion by 2027, a new report has revealed. The RBF allows startups with an option beyond venture capital to fund their business, especially those that show stable growth, recurring revenues and strong margins.
The report titled “Revenue-based Financing Market: Opportunity Analysis and Industry Forecast, 2020-2027, was published by Allied Market Research. It said the desire for higher profits among investors, faster fund-raising needs and a rise in revenue-based loans by startups would be key drivers of this growth.
In terms of industry verticals, the report pegged IT and telecom to continue its dominance in the growth of RBF options as a result of growth in startups around telecom, platform-as-a-service and software-as-a-service companies seeking more revenue-based loans.