Capital Comparison

Revenue-Based Financing vs. Private Equity

Scale without selling control of your company.

Private equity can provide significant capital and operational expertise — but it typically requires selling a majority stake, accepting a new board, and committing to an exit within 5–7 years. For founders who want to grow on their own terms, revenue-based financing offers a compelling alternative.

Side by Side

How They Compare

Feature

Peers & Co (RBF)

Ownership Transfer

None

Majority stake (50–80%)

Board Control

Retained by founder

PE firm controls board

Exit Timeline

Your choice

Forced within 5–7 years

Operational Autonomy

Full

Limited — PE drives strategy

Equity Dilution

Zero

Extreme (majority)

Capital Available

$1M–$20M+

$10M–$500M+

Time to Close

Weeks

3–9 months

Management Changes

None required

Often required

Decision Guide

Which Is Right for You?

Choose Revenue-Based Financing

If you want to remain in control of your company, set your own exit timeline, and access growth capital without selling a majority stake, revenue-based financing is the right choice. We provide capital to scale without any ownership transfer or governance changes.

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When PE May Be Better

Private equity makes sense when you want to sell a significant portion of your business, bring in operational expertise to transform the company, or need very large capital ($50M+) that non-dilutive sources can't provide. If you're ready to share control and commit to an exit, PE can be a powerful growth accelerator.

FAQ

Common Questions

Is revenue-based financing an alternative to private equity?

For companies needing $1M–$20M in growth capital, yes. Revenue-based financing provides non-dilutive capital without the ownership transfer, board changes, or exit pressure that come with PE. For companies needing $50M+ or wanting to sell a majority stake, PE may be more appropriate.

Can I use revenue-based financing to avoid selling to private equity?

Many founders use revenue-based financing specifically to avoid PE. By accessing non-dilutive capital to fund growth, they can scale to a higher valuation and exit on their own terms — rather than selling a majority stake at an earlier stage.

The information on this page is for general informational purposes only and does not constitute financial, investment, legal, or tax advice. All financing is subject to underwriting approval and eligibility criteria. Past performance is not indicative of future results. Peers & Company is a merchant bank, not a registered investment advisor. Consult qualified financial and legal advisors before making financing decisions.