Reach all 20,000+ investors by posting a funding request.
Post a RequestCustomer Funding Definition
customer funding – n : a business arrangement between
a vendor and its customer wherein the customer agrees to provide the vendor
with some level of up-front funding in advance of delivery of the product or
service. The intention of such arrangements is usually to partially or wholly
fund a vendor’s product development. The vendor benefits by receiving earlier
cash flow that can help fund product development and obviate the need for as
much external funding (reducing shareholder dilution). The customer, on the
other hand, often benefits from such arrangements by getting an early look at a
new product or technology, experiencing the ultimate benefits of the product
sooner than it otherwise would, having disproportionate influence over the
product’s features and delivery schedule, and possibly special
discounts
off the eventual list price.
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Adapted from "The CompanyCrafters Entrepreneur's Dictionary"
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