Revenue-Based Financing Gains Traction Among Startups in MENA

December 24, 2024 - 19:45

In an era where it’s become tougher to raise venture capital, many companies have turned to non-dilutive Revenue-Based Financing (RBF) as an alternative. This innovative funding model allows startups to secure capital without giving up equity, making it an attractive option for entrepreneurs seeking to maintain control over their businesses.

In the MENA region, the adoption of RBF is on the rise, as startups increasingly recognize the benefits of this financing method. RBF enables businesses to repay their investors based on a percentage of their revenue, which aligns the interests of both parties and provides greater flexibility in repayment terms. This is particularly appealing for companies with fluctuating income streams or those in early growth stages.

As the startup ecosystem in MENA continues to evolve, the demand for non-dilutive financing options like RBF is expected to grow. This shift reflects a broader trend in the global investment landscape, where entrepreneurs are seeking alternative funding sources that allow them to scale without sacrificing ownership.