Mumbai-Based GetVantage Is Helping Startups Raise Funds Without Giving Away Equity
- ByAyushi Ray | July 30, 2021
Funding is the most important part of any startup. It practically decides whether a startup can stay in the market or has to leave with the lack of funding. Several Venture Capitalists, and investors try to invest in funding Startups, but not everybody can afford that or reach up to their standards. In this scenario, Mumbai-based GetVantage is helping startups raise funds without giving away equity. Not wanting to part with a lot of control in their own companies leads to founders missing out on valuable funds and time they could have used to scale. Revenue-based financing is where the funding company takes a small cut of a venture’s future revenue stream as a flat fee, in exchange for growth funds. There’s no equity dilution involved, nor is there any debt of any kind — win-win for the startup looking for quick funds without the long, arduous pitching process. Mumbai-based GetVantage , founded by Bhavik Vasa and Amit Srivastava, ex-founders themselves, is one such company. GetVantage provides revenue-based financing to growth-stage startups. It uses a proprietary machine-learning-based credit decision engine, and a deal management system to evaluate and gauge a startup’s future revenue performance, and offers a term sheet based on its findings.
“Today, the VC model is somewhat broken and really based on who you know. Founders become dependent on the quality of their networks to make the right introductions to investors and can spend months courting them, only to be turned away,” Bhavik sid in a comment, adding, “ What’s worse is that those who do manage to raise equity funding are selling control and diluting ownership, which only increases as the business is more successful. That’s not right.” GetVantage is Bhavik’s answer to expensive equity tasks and personal connections that could result in biased funding activities. By taking personal connections out of the equation, he aims to democratise fundraising, as well as ensure that the most deserving founders and solid businesses receive the funds they need to get to the next level.
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