Back to feeds

PRATHAM

Stealth • 1m

Forget VC Funding: Best Alternatives of VC funding For decades, raising round after round, burning cash and the founders are left with one digit equity. VCs own the equity. Founders are like puppets. They want 10x returns in 5-7 years whether your business can handle it or not. For every Google and Airbnb, there’s a WeWork, ( which was destroyed due to overexpansion even with funding) So what’s the alternative? How do you raise capital without selling yourself 1. Revenue-Based Financing (RBF) How it works: Investors provide capital in exchange for a fixed percentage of future revenue until they make 1.5x to 4x their investment. Basically Royalty without equity No dilution, no board interference, and no pressure to scale at breakneck speed. Who’s doing it: Clearco: has invested into 10,000+ startups like Haus, Untuckit, and Andie using RBF. E-commerce brand Doe Lashes took RBF from Clearco instead of raising VC. The result? 100% founder ownership and profitable growth. 2. Crowdfunding You raise money directly from the public, turning early adopters into evangelists. Similar to IPO You get capital + market validation without giving up board seats. Who’s doing it: Kickstarter & Indiegogo helped launch brands like Pebble (smartwatch), Oculus (VR headset), and Many more 3. Decentralized Finance (DeFi) Companies issue tokens or use DeFi lending platforms to raise funds. No banks, no middlemen, no gatekeepers—just direct access to global liquidity. Who’s doing it: Aave( It's quite popular on Web3 ) & Compound let startups take out loans backed by crypto collateral. DAOs (Decentralized Autonomous Organizations) like BitDAO have raised billions without traditional fundraising. Axie Infinity raised $152M through a token sale, skipping VCs entirely and then became a $3B gaming empire. 4. Micro-Venture Capital Smaller funds invest smaller amounts in early-stage startups, often with founder-friendly terms. Why it’s different from traditional VCs: Less pressure for hypergrowth, more focus on sustainable scaling. Who’s doing it: TinySeed invests in bootstrapped SaaS startups with revenue under $1M. If your goal is fast hypergrowth, then sure VC funding makes sense. But if you want to build a long-term, sustainable business? These alternatives might be a better fit. Best for Indiecorns imo. This is probably the best post by Me imo. I had alot of fun making this post.

9 replies14 likes
14
Replies (9)

More like this

Recommendations from Medial

Image Description

Mayank Kumar

Stealth • 8m

The Impact of Venture Capital on Innovation! Venture capital (VC) plays a crucial role in driving innovation. By providing the necessary funds, VCs enable startups to scale and develop groundbreaking technologies. Think of companies like Uber, Air

See More
1 replies4 likes
Image Description
Image Description

Mayank Kumar

Stealth • 8m

Startup Funding 101: Bootstrapping vs. VC Funding Deciding between bootstrapping and venture capital (VC) funding is a critical choice for startups. Bootstrapping involves self-funding and can offer more control but may limit growth potential. V

See More
3 replies8 likes
Image Description
Image Description

Aastha Anand

Stealth • 7d

Welcome to Dark Pool Venture Capital-where ultra-wealthy individuals, family offices, and private funds invest off the record. Not all VC funding makes headlines. Some of it stays in the shadows. Why stay hidden? 1) No public signals, no inflated

See More
7 replies16 likes
5
Image Description
Image Description

Mehul Fanawala

 • 

The Clueless Company • 8m

Is it better to bootstrap or seek VC funding for your startup? The endless debate: Bootstrap vs. VC funding. - Bootstrapping builds resilience and deep customer focus. You prioritize solving real problems over chasing valuations. - VC funding can

See More
4 replies9 likes
2

Vikas Acharya

 • 

Medial • 2m

STARTUP TERMS TO KNOW -Day 2 1.ANGEL INVESTOR - An individual who provides capital to startups in exchange for equity. 2.VC (Venture Capital) - Financing provided to startups by venture capital firms. 3.EQUITY - Ownership stake in a company. 4.SE

See More
0 replies6 likes
2
Image Description
Image Description

Vaibhav Babruwan Shingde

Stealth • 1y

What are some of the criteria and methods that VCs use to evaluate and select start-ups for Funding 💲🤑? Let's Start Discussion With Venture Capital Firms World Today?

3 replies7 likes
Image Description
Image Description

Vishu Bheda

 • 

Medial • 4m

Airbnb, now worth ~$100 billion, was rejected by 7 investors in 2007. Not because it was a bad idea, but because VCs reject 99% of startups. Lesson: If ALL your plans depend on VC funding rather than customer funding, you are already fighting 99% f

See More
7 replies7 likes
1

Sairaj Kadam

Stealth • 6m

Exploring Venture Capital: Fueling Startup Growth Hello again, everyone! Today, let’s take a closer look at a powerful funding method that’s been behind some of the world’s most successful startups—Venture Capital (VC). If you’re aiming for rapid g

See More
0 replies2 likes
Image Description
Image Description

Hathoda Tyagi

Stealth • 4m

🔶 App launched in 2018. 🔶 Year-2024, Till date downloads only 5,000. ♥️ App feature - You can not sign up. Only Sign In. 🔶 Funding - Titan Capital. $1.2 million. And VCs are visionary. 🎯

10 replies8 likes
1

RISHABH SINGH RAJAWAT

Stealth • 1m

"Hello! We are conducting a quick survey to gather insights on connecting with venture capitalist (vc). If you have experience pr advice we'd love to hear your thoughts what are the best ways to reach out to VCs and secure funding?

0 replies4 likes

Download the medial app to read full posts, comements and news.