Publications
Publications
- October 2022
- HBS Case Collection
Founders First Capital Partners
By: Brian Trelstad, Mel Martin and Amy Klopfenstein
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." Harvard Business School Case 323-013, October 2022.