Businesses seeking to avoid typical venture capital funding now have a new alternative source of cash to consider. D2, a London-based company, has just introduced a hybrid financing option that allows entrepreneurs to acquire money in exchange for a part of future revenue streams rather than by giving away equity in the company.
A rising number of alternative funding choices are emerging for firms who do not believe the venture capital model is the best fit for their needs. D2, which has launched a $20 million fund for this type of investing, is one of these options.
As founding partner Amory Poulden explains, “the reality is that the typical venture capital model does not work for the vast majority of early venture-backed enterprises.” ‘To qualify for venture capital, new firms are now expected to create a story about how they will become the next decacorn,’ explains a venture capitalist.
