Success Stories
Black Sheep Secures YouTube Revenue Discounting with BetterInvest
Published by
Annu Singh
Published on
July 25, 2024
Short Summary
Testimonial
"BetterInvest's funding solution was exactly what we needed. We could produce high-quality content without giving up control or equity. The entire process was smooth and efficient." – RJ Vigneshkanth, Managing Director at Black Sheep
Black Sheep, a leading Tamil YouTube channel boasting 8 years of experience and 8 million subscribers, sought upfront capital to produce three original web series. The challenge was to secure growth capital without giving up equity or creative control.
The Challenge
Black Sheep encountered several challenges:
- Traditional credit sources were insufficient for content creation.
- Private financiers demanded equity stakes and creative control.
- High capital charges from conventional financing methods.
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BetterInvest’s Solution
BetterInvest offered a tailored funding approach:
- Revenue Underwriting: Provided funding equivalent to 6 months of cash flow based on past revenues through YouTube Revenue Discounting.
- Revenue Share Facility: Established a revenue share facility and repayment schedule.
- Escrow Account: Created an escrow account to receive payments directly from YouTube.
The Results
- Before BetterInvest: Black Sheep struggled to secure adequate funding without sacrificing equity or creative control, and faced high capital charges.
- After BetterInvest: With our funding, Black Sheep produced and released new web series, resulting in increased revenue and timely repayments. The process was smooth and efficient, allowing the channel to maintain control and grow without diluting its equity.
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