Funding for MSPs
All businesses need outside funding to grow effectively, and Managed Service Providers (MSPs) are no exception.
To provide effective disaster recovery, remote monitoring, and management, cloud services, security services, or other general managed IT services, small businesses need capital. By necessity, small MSPs work with services partners and need data centers, all of which requires capital.
However, it can be difficult to find funding options that will benefit your company in the short and long term. There are very few options that don’t strip you of some control. Our experienced team understands that not all managed service providers investments produce positive results. Here are a few options that you should consider.
Venture Capital
One of the main funding options for a growing business is venture capital. Venture Capital for managed services offers you the ability to obtain significant amounts of capital, but that capital comes with plenty of strings attached. An investment from venture capitalists or a private equity firm usually results in the business owners losing equity and some control of the company.
Unfortunately, it is particularly difficult for growing mid-sized businesses in the managed services industry to obtain venture capital. It is usually easier for a small company to raise $1 million or a larger company to raise $10 million than a medium-sized company to raise $5 million.
Venture capital can work well for new, small or larger businesses, but does not work well for medium-sized companies looking to get over the mid-sized hump.
Angel Investor
A MSP can also seek an angel investor to provide their company with capital. Generally, an angel investor that partners with a MSP already has significant business experience. It is very likely that they have experience in your industry, which should make them an excellent mentor.
While angel investors usually do not require repayment, they typically cannot offer the quantity of capital that a growing MSP business needs. Most angel investors also require some sort of control or equity in your business, which is not desirable.
There are alternative ways to receive capital, but they carry significant drawbacks. While bank loans have low interest rates, it is almost impossible for startups to obtain them. Getting one a bank loan is complicated and time-consuming. Crowdfunding can provide some capital as well as advertising, but there are no guarantees that you will get the capital you need.
What if your MSP needs significant capital and doesn’t want to sacrifice control or equity? That’s where RevTek comes in.
RevTek Offers Superior Funding for MSPs
Venture capital, angel investors, and even bank loans can get your Managed IT company the capital it needs. However, all of these options result in you losing board members and control of your company.
At RevTek, we care about the long-term success of your company, which is why we don’t take any control or equity away from you. Giving away control should not be a requirement for getting the capital you need to grow.
RevTek offers the best funding for MSPs. Our experienced team understands industry trends, as well as M&A activity, which more than qualifies us for Managed IT funding. We offer growing MSPs the best funding available. As long as you have a strong business model, at least $500,000 gross revenue monthly, and good cash flow, you can utilize our funding options.
Our revenue-based financing allows us to provide you capital in exchange for a percentage of your future revenue. By focusing on future revenue, we refuse taking control. We create a repayment system based on your monthly recurring revenue stream.
Our process and terms are simple, and you can obtain from $3 million to $3 million in growth capital. Whether you need to improve your sales and marketing approach and tactics, develop new products or equipment, or create new technological services, we can provide the capital you need to grow your business.
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