Seed & Startup Capital

Providing Startup Financing Solutions Since 2001

How to Meet Angel Investors for Starup Capital

Angel investors finance far more companies than venture capitalists and the good news is that there’s probably an angel investor group near you. To meet them about providing you with startup capital, you will need to contact the local network chapter or club. Sorry, but you can’t get their home number and email because they don’t want to be swamped by entrepreneurs. These days angel investing is a business for which they prefer to have a screening process administered by paid staff or volunteer MBA students. They  have plenty of deals to choose from. Continue reading

Revenue Royalty Certificate Financing

A fairly old, tried and true financing method for both startups and small businesses needing growth capital is generically referred to as revenue-based financing. It’s also sometimes referred to as revenue participation or revenue sharing funding.  The actual document used is typically called a Revenue Royalty Certificate (RRC) or Revenue Participation Agreement or some combination of the two.

I first learned about revenue based financing from one of the greats among angel investors, Arthur Lipper, who had a particular fondness for the instrument. This was back in 1985. Since then I have used it myself and seen others use it as well to both launch startups and provide growth capital to existing small businesses. Continue reading