We provide end-to-end fundraising services for businesses.
Is our service best for you?
Substantial time and efforts were put to the project, but you can’t see exactly how to scale or proceed.
... but understand the critical flaws of ICOs.
Our services are optimal for companies at their early growth stage. On one hand, we are not likely to onboard idea-stage start-ups; on the other hand, if your company is mature enough, you should probably opt for a regular placement of securities.
Expenses (and potential mismanagement) may only happen after the gate the investor is standing at to collect his payout. Compared to stock owners, investors are “closer to the money" in this position. Don’t worry so much about what expenses are and how it’s spent, but rather the fact that the company has more clients and revenue is growing.
Unlike traditional debt, revenue participation notes have an upside—they can be paid in full earlier than expected.
Your company’s shares remain intact—there is no dilution.
Since payouts only occur when the company has revenue, you endure only feasible debt obligations. You provide no collateral.
Investors have a direct incentive to promote your project, as the increased turnover immediately affects their payouts.
Company borrows €200,000 as RPNs paying 7% of revenue, with 30% profit for investors, paid in about 4 years*, payments quarterly.
(*) 4 years it is not a guarantee. The debt may be paid in full earlier or later. Projected revenue during year 1 is €1,000,000. Let's assume it won't grow. 7% of revenue is to be paid to investors. As €70,000 goes to investors in the first year, the total term is estimated less than 4 years: €200,000*(1+0.3) = €260,000 total payout; 260/70~3.7 years (compounding issues ignored for simplicity). If the revenue grows 20% each following year, the entire debt will be paid in 3 years and 1 quarter, with effective RoI at 15.57% p.a.
The payout formula can also include cumulative turnover and how long it takes to achieve it. Of course, the choice of parameters (percentages, terms) requires quality planning.