Customer-funded Business Models

Venture Capital > Best Practices Premium

Customer-funded Business Models
Paula Kokare, Project Manager, Switzerland

In his research, Professor J. Mullins (2014) argues that customer-financed business models provide an alternative source of financing for start ups. These models bring great benefits for start-ups compared to sourcing through external funding, e.g. financing with venture capital or crowd-sourcing. Mullins distinguishes 5 categories of customer-funded business models:
  • MATCHMAKER MODELS: businesses that connect buyers and sellers in the marketplace without owning the goods and services exchanged between the participants (e.g. airbnb, DogVacay). Matchmakers earn their revenue as a commission on the transactions carried out between the parties that exchange the goods.
  • PAY-IN-ADVANCE MODELS: businesses that persuad... Register

Limitations of Customer Funded Business ModelsSign up
Gavril, Management Consultant, Albania
I agree with Paula in principle. However, there se...

Mullins ( Design by Swiss )Sign up
jayesh, Business Consultant, India
How does this apply in a country controlled by ver...

2 More Customer Funded Business ModelsSign up
Raj kumar, Other, India
@ Paula, adding to your point we can have two more...

Customer-funded Business Models not for Traditional Businesses?Sign up
Sandy Musallam, Editor, United States
This concept although interesting, would be diffic...

Problems with Customer-funded Business ModelsSign up
Tom Lesnikowski, Business Consultant, Australia
Whilst all five categories have their merits and a...

When a Customer Funded Model WorksSign up
V.SHRIDHAR, Business Consultant, India
I am New to Finance, I wish to share my experience...


  Do you wish to study further? You can learn more from the summary, forum, discussions, lessons, courses, training, instructions, expert tips, best practices and education sources. Register.  

Special Interest Group Leader

You here

More on Venture Capital

Best Practices
  • Customer-funded Business Models

Expert Tips


About 12manage | Advertising | Link to us / Cite us | Privacy | Terms of Service
2018 12manage - The Executive Fast Track. V14.1 - Last updated: 19-3-2018. All names of their owners.