A revenue sharing note (RSN) is an agreement, in which a company borrows money from an investor and agrees to pay back a certain percentage of their revenue every quarter until all of the principal and accrued interest from the loan is paid back. The four major things that should be considered prior to signing a RSN agreement include the: investment multiple, maturity date, revenue share percent, and internal rate of return. It functions similarly to a revenue based financing agreement, except that the rate of repayment is not fixed—in periods of lower revenue, you pay a lower amount and in periods of higher revenue you pay a higher amount.For high-growth startups this fluctuation in payment amounts is often challenging, because they cannot fully leverage the additional revenue they generate to further increase their growth rate.