While the tech or conventional startup ecosystem, has caught on to new age financing (other than VCs), this is seldom heard of in the impact investment ecosystem. At least in India, revenue based financing (RBF) , equity crowdfunding, asset financing, thrasio model etc. have caught on to give startups & SMBs a great flexibility in going about their fundraising plans. Not only has this accelerated capital infusion, it has given them a myriad of options other than conventional VCs or debt options.
In the impact startup ecosystem, such speed and alternate financing option is unheard of, at least in the scale it is happening with other startups. A fundraising round with an impact fund or debt source is a minimum 3 to 6 month exercise, and that too after setting up 20+ meetings with various players. An entrepreneur has to go through this exercise, while also running and growing his or her business, with delays and uncertainties around the whole journey.
Blended Finance models, impact bonds etc. are some options have started to appear, but nothing that is fast and smooth out there, like RBF etc.