Is revenue based financing an innovative, effective and sustainable financing instrument for startups? A European market approach - application in practice and possible deficiencies

Abstract

This Master's thesis explores Revenue-Based Financing (RBF) as a novel financing model for startups and Micro, Small and Medium-sized Enterprises (MSMEs) in Europe. It examines RBF's practical applications, challenges, and future trends, particularly in the context of digital and impact startups. A dual-method approach is employed, combining literature review and empirical research through interviews, to offer insights from RBF providers and experts in Europe, providing valuable information for entrepreneurs, investors, and policymakers.