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  • October 2022 (Revised January 2025)
  • Case
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Founders First Capital Partners: An Approach to Capital Access Equity

By: Brian Trelstad, Mel Martin and Amy Klopfenstein
  • Format:Print
  • | Language:English
  • | Pages:11
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Abstract

In June 2021, Kim T. Folsom, the founder and CEO of revenue-based financing firm Founders First Capital Partners (FFCP), must decide whether to issue another loan to OnShore Technology Group, an up-and-coming software validation company. FFCP provided revenue-based financing (RBF) to small businesses, with a particular focus on diverse entrepreneurs. OnShore Founder Valarie King-Bailey had previously taken an RBF loan, and had requested a second round of capital from FFCP. The case provides an overview of the advantages and disadvantages of RBF—specifically relative to bank loans and merchant cash advances—and challenges readers to decide whether a second RBF loan would be appropriate for OnShore.

Keywords

Finance; Financial Instruments; Financing and Loans; Interest Rates; Investment Return; Revenue; Capital; Financial Services Industry; North and Central America; United States

Citation

Trelstad, Brian, Mel Martin, and Amy Klopfenstein. "Founders First Capital Partners: An Approach to Capital Access Equity." Harvard Business School Case 323-013, October 2022. (Revised January 2025.)
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About The Author

Brian L. Trelstad

General Management
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Related Work

    • October 2022 (Revised January 2025)
    • Faculty Research

    Founders First Capital Partners: An Approach to Capital Access Equity

    By: Brian Trelstad, Mel Martin and Amy Klopfenstein
Related Work
  • Founders First Capital Partners: An Approach to Capital Access Equity By: Brian Trelstad, Mel Martin and Amy Klopfenstein
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