Cosmin Panait on Revenue-Based Financing: A Smarter Way to Fund Growth

When it comes to funding a business, traditional options like equity financing or bank loans can sometimes create more challenges than they solve. Startups and fast-growing companies in tech or direct-to-consumer industries often find these methods limiting. They might strain cash flow or force founders to give up significant ownership stakes. 

Cosmin Panait, co-founder of Blackbridge Investment Group (BIG) and Managing Partner at GenCap Management, advocates for a different solution: revenue-based financing (RBF). This innovative funding model is designed to help companies grow sustainably while keeping control in their hands.

“Revenue-based financing is a game-changer for businesses,” Panait explains. “It doesn’t saddle companies with rigid repayment schedules or require giving up equity. Instead, it adapts to how the business performs, linking repayments to revenue.”

What Is Revenue-Based Financing?

RBF is a flexible way for companies to access growth capital. Instead of a lump sum loan or equity stake, companies commit to sharing a percentage of their future revenues until a specific repayment goal is met. It’s a non-dilutive option, which means founders can keep control of their business while repayments adjust based on how much the company earns each month.

“RBF works by aligning with a company’s success,” Panait says. “When revenues go up, repayments rise. If revenues dip, payments decrease. It’s a lifeline for businesses with seasonal sales or those experiencing rapid, uneven growth.”

Real-World Examples: How RBF Fuels Growth

Many companies have successfully leveraged RBF to achieve sustainable growth without compromising ownership or cash flow. Here are three notable examples:

1. Boosting Valuation Before Equity Rounds: Doctor.com

In 2016, the healthcare tech company Doctor.com utilized RBF to enhance its sales and marketing efforts before a Series A funding round. This led to a significant increase in monthly revenue, putting the company in a stronger position to negotiate favorable investment terms.

2. Scaling Sales and Marketing: Shock Surplus

Automotive parts retailer Shock Surplus used RBF to purchase inventory directly from wholesalers. This strategic move resulted in multi-million-dollar annual revenue growth while allowing the founders to retain control of the company.

3. Managing Seasonal Demand: An E-Commerce Story

An e-commerce company with seasonal revenue spikes used RBF to stock inventory ahead of peak sales periods. The repayment structure allowed them to meet holiday demand without straining their budget, paying back the funds in proportion to their high-revenue months.

“These examples highlight RBF’s ability to adapt to each company’s unique growth patterns,” Panait notes. “It’s particularly well-suited for businesses that need agility and scalability.”

Why Revenue-Based Financing Is Gaining Momentum

The appeal of RBF is growing across industries, from e-commerce and SaaS to businesses with predictable revenue streams. According to Panait, RBF is the future of efficient, scalable financing. “At Blackbridge Investment Group, we’re committed to helping companies grow on their terms. RBF respects founders’ ownership while offering the financial flexibility they need.”

Industry leaders echo this sentiment. Miguel Fernandez, CEO of Capchase, states: “Companies are searching for funding methods that avoid equity dilution and restrictive debt. RBF is that solution.” Similarly, Clearco CEO Andrew D’Souza says: “Founders are increasingly drawn to non-dilutive capital options. RBF allows them to scale efficiently without giving up ownership.”

A Vision for the Future

With advocates like Cosmin Panait leading the charge, revenue-based financing is emerging as a powerful tool for companies seeking flexible growth solutions. By aligning capital with natural revenue cycles, RBF enables businesses to maintain control while scaling sustainably.

“At Blackbridge Investment Group, our goal is simple: to support businesses in achieving their vision—on their terms,” Panait concludes.