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What funding structures are available to me?
What funding structures are available to me?

Funding structures, funding types, deal types, fundraising rounds

Written by Kristin Lim
Updated over a week ago

Fundnel works with companies looking to raise capital via a range of fundraising structures – including equity, convertibles, debt, and revenue sharing.

For more information, please take a look at the merits and features of each fundraising model below:



  • Receive long-term funding from investors with no fixed time frame to return the principal amount of investment

  • No ongoing interest rate


  • Increase the number of shareholders in exchange for investment

  • Issue voting / information rights to all investors

  • Shares usually carry an entitlement to dividends if and when declared

Convertible Bonds


  • Ability to price the share at a premium compared to pure stock sale

  • Lower interest rate as compared to pure bonds – a convertible could be a zero-coupon security

  • Flexibility to structure the convertible based on maturity period, conversion premium etc, to achieve desired objectives of business owners


  • Delayed dilution of existing shareholders

  • Interests payments to be made to investors at a pre-determined interval, except for zero-coupon securities

  • Interest will typically be added to the value of convertible bond before conversion

Debt (e.g. bonds, term loans or working capital facilities)


  • No dilution to existing shareholders


  • Interest payments to be made to investors at a pre-determined interval, typically every six months

  • Principal has to be repaid to investors upon maturity of the bonds

  • Financial covenants may apply

Revenue Sharing

Business owners agree to share a percentage of its gross revenue with investors


  • No dilution to existing shareholders

  • Flexible payments as a percentage of revenue

  • Flexibility to cap the return to investors to either; a predetermined "investment multiple" on their investment is achieved, or a predefined duration in accordance with its associated terms (e.g. after a certain time frame)


  • A strong administrative process is required to track and fulfil pre-determined regular pay-outs

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