At maze impact, we provide early-stage impact founders with both financial and non-financial support. While we operate with a venture capital model, offering funding in exchange for equity, we also take a hands-on approach. This means working closely with founders to guide them through key growth strategies, helping with fundraising, and making crucial introductions.
The more we work with founders, the more we realize that venture capital alone isn’t enough. Many impact-driven entrepreneurs are looking for more flexible, founder-friendly alternatives that complement venture funding or can stand on their own.
After hearing from many founders about their interest in different funding models, we reached out to key players in our network. They specialise in unique funding mechanisms designed to help impact founders scale their businesses.
Here’s what they shared:
Paul Boutlier, Head of Investment & Business Development at WE DO GOOD
Founded in 2013, WE DO GOOD is a crowdfunding platform that allows startups to raise funds through crowd revenue-based financing (RBF). This model connects businesses with individual investors who provide funding in exchange for a percentage of future revenues. What makes We Do Good’s approach unique is that it brings together a community of investors, allowing startups to raise capital without diluting their equity.
Paul: Crowd revenue-based financing allows startups to raise funds from individual investors who receive a percentage of future revenues. Unlike traditional loans, where repayment is fixed, this model adjusts based on the company’s actual revenue. It’s different from equity financing as well, because founders keep full ownership of their company. It’s a flexible, non-dilutive option that can complement other types of funding.
Paul: The main difference is the crowd aspect. Instead of securing funds from a single lender or institution, we involve a large community of individual investors. This not only diversifies risk but also helps businesses build a network of supporters. Additionally, crowd RBF can help increase visibility for the business, as these individual investors often become customers or advocates of the brand.
Paul: With crowd RBF, the biggest advantages are flexibility in repayment and no dilution of ownership. You can also raise more debt, and thanks to the crowd aspect, you get increased visibility. The individual investors who fund your project can become ambassadors for your brand, sometimes even customers, which adds value beyond just the money.
Paul: The repayment percentage varies depending on the amount raised, the business plan, and EBITDA margins. Typically, this percentage falls between 3% and 10%. We also set a minimum turnover threshold, meaning companies don’t have to make payments unless they meet a certain revenue level. There’s also a cap to make sure repayments don’t overwhelm the business.
Paul: Start planning early. As soon as you have a solid business model, start thinking about all the different ways to fund it. RBF can work well alongside other sources of funding like strategic equity investors and debt.