Ep 04: Homegrown’s Revenue-Based Capital for Brick-and-Mortar Businesses

Groundfloor CEO Brian Dally hosts Michael Davis, CEO and co-founder of Homegrown, a fintech providing growth capital to proven brick-and-mortar operators such as restaurants, fitness studios, and retailers. Michael shares how his parents’ struggles getting bank financing inspired Homegrown and explains why traditional bank lending often fails these entrepreneurs due to regulatory risk limits and a cumbersome process. Homegrown offers revenue-based expansion capital via capped-return revenue contracts, designed to protect business cash flow and provide investors monthly payments with upside tied to growth. Michael discusses underwriting signals like performance through disruptions, diversification from existing locations, and the idea that local businesses can help absorb AI-driven job dislocation. He also describes investor appeal: regular cash flow, risk-adjusted returns, and backing tangible local businesses.00:00 Welcome and Guest Intro01:55 Homegrown Origin Story03:50 Why Banks Say No06:46 Underwriting Real Risk09:22 What Homegrown Funds12:05 Revenue Contract Explained17:47 AI Shock Absorber20:57 Staying Resilient Now24:34 Winning Investor Trust28:59 Rapid Fire Round33:28 Closing and Where to FindBeyond the Stock Market podcast: https://groundfloor.com/podcastConnect with Brian Dally on LinkedIn: https://www.linkedin.com/in/bdally/Connect with Michael Davis on LinkedIn: https://www.linkedin.com/in/michaeldavisbuilds/References:Homegrown: https://joinhomegrown.com/The Hard Thing About Hard Things by Ben Horowitz: https://www.amazon.com/Hard-Thing-About-Things-Building/dp/0062273205Acquired Podcast: https://www.acquired.fm/