What: Investing Without Exits: Exploring Revenue-Based Financing Luncheon
When: Thursday, June 25, 2015 12:00 – 1:30 pm
Where: Spacestation, 3rd Floor, 517 Fort Street
Capital Investment Network has announced its final private equity education event before the summer. The keynote will be Michael “Luni” Libes, a Seattle serial entrepreneur and founder/co-founder of six start-ups who is now focused on helping the next wave of entrepreneurs via a variety of initiatives. Most recently, Luni founded Fledge LLC, a “conscious company” funded incubator. What makes Fledge relatively unique is its use of RBF.
Libes will talk about revenue-based financing, or royalty-based financing (“RBF”), an alternative investment approach to debt and equity which reportedly enables investors to earn a two to five times the return without the need for an exit. In exchange for the investor’s cash, the company promises to pay the investor a fixed percentage of its revenue until the investor has received a predetermined multiple on their investment.
Experts say the approach, which is growing in popularity, can start to deliver a return for investors as soon as the company starts to generate cash from revenue thereby helping to reduce how long the investor’s principal is tied up. If properly structured, upside from an exit is also possible.
RBF is currently a hot topic in the early stage investing community.
Space is limited. Click here for registration information.
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