Why Startups Are Offering Revenue Share Agreements Instead of Equity

In this episode, Lucas and Luna explore a growing trend in early-stage financing: revenue share agreements (RSAs), where startups promise investors a percentage of future revenue instead of equity. They discuss how RSAs differ from SAFEs and convertible notes, and why they appeal to founders who want to avoid dilution. Using live data, they note that companies like Roblox (up 10.4% in the past five days) and Airbnb (up 7.4%) are examples of capital-efficient businesses that could have benefited from such structures. Lucas and Luna also touch on why RSAs are gaining traction in the current high-interest-rate environment, and how they can align incentives between founders and investors more closely than traditional equity. #RevenueShareAgreements #RSAs #StartupFunding #EarlyStage #Founders #Investors #Dilution #SAFE #ConvertibleNotes #CapitalEfficiency #Roblox #Airbnb #InterestRates #Alignment #BusinessPodcast #FexingoBusiness #TheSeriesAShow #BusinessAndTechnology Keep every episode free: buymeacoffee.com/fexingo