Subscription-Based Financing and the rise of a new asset class
In the tech era, start-ups have usurped and easily captured the market share of their larger and more established counterparts because they were not afraid of challenging the status quo through innovation. Now, emerging technology companies are applying their innovative way of thinking to finance, steadily moving away from conventional venture funds and bank loans that dilute their equity and saddle their businesses with debt. Subscription-based financing allows businesses to trade their recurring revenue cash flows at an upfront discount.