This is an incredibly effective way to raise money for both startup financing and business acquisitions.
How to Structure a Deal Like a Pro
This is actually two (2) products in one.
First, it shows you how to raise startup capital or a subsequent round using a revenue royalty certificate. This instrument is highly effective in eliminating the standard objections, whether spoken or not, that hold investors back from giving you a check.
Second, it shows you how to identify the best possible investors and structure your financing deal around their needs for liquidity. This is the most investor-friendly way to structure a deal and they will thank you for it.
This approach also serves as a filter which allows you to distinguish between the long shots and the do-able deals. Smart entrepreneurs rarely waste time on opportunities that have an extremely low probability of being funded. Instead they go with the ones that are highly likely to attract capital. Rookies frequently lose six to 18 months chasing after dead-ends.
You have no doubt experienced the frustration of dealing with an interested investor who just drags his heels when it comes time to cut a check. In most cases, the problem is that he doesn’t understand how he is going to ever get his money back. You have given him the standard replies, “We’ll either IPO or be acquired. Either one will create the liquidity event you need to exit the deal!”, but those responses don’t have a lot of credibility anymore. In fact, they are as credible as Wimpy’s tired old refrain, “I’ll gladly pay you Tuesday for a hamburger today!”
However, that’s not the only deal-killer that you must contend with. The other big ones when it comes to raising money are:
-The inability to overcome differences about valuation. You are prepared to surrender 10% of your equity for the money. The investor wants 51%. This gap is called The Grand Canyon.
-The investor’s reluctance to tie up his money in highly illiquid form as a minority shareholder in a private company where he’s at the mercy of the majority shareholders.
The Revenue Royalty (or Participation) Certificate
The way to over-come all of these deal-killers is by using a unique investment instrument called a Revenue Royalty Certificate or RRC because it has a schedule and formula for repayment of the investor’s money. In other words, it’s like a loan which can convert into some nominal equity after the principal has been repaid in full with interest.
So stop wasting time.
Download the new How Deal-makers Close Investors today!
What I have done is put together a new tool for capital raisers which distills one of the key lessons from my deal-maker course. The three files will do the following:
-Show you a proven approach to raising money that will at least double your odds of succeeding.
-Reveal the tremendous benefits of the RRC.
-Provide you with a spreadsheet so that you can use the RRC in your deal.
-Show you how to think like a deal-maker instead of a hapless rookie entrepreneur.
-Provide you with a sample RRC agreement you can use to save thousands in legal fees.
Get your copy of How Dealmakers Close Investors today! The regular price is $99.95 but today it’s only $79.95
The price will jump back to $99.95 shortly.
Here’s your opportunity to benefit in two major ways: you will know how to set up a revenue royalty certificate as well as understand whether or not you have a do-able deal and how to fix it if it’s not. Please understand that some deals are so bad that they can’t be saved. If you have one it’s better to find out sooner than later.
If You Are Thinking of Passing on This Deal Take This Test
This product will not only show you how to structure a deal like a pro and close investors, but it will also potentially save you thousands in legal fees. So here’s a test of your business acumen. Which is the smarter move?
A. Invest a few bucks right now and get all of the above? Or:
B. Spend $1500 to $3000 in legal fees later?
Which choice is better?
Need Yet More Assurances That This is a Wise Investment?
The Wall Street Journal calls revenue royalty financing: An alternative financing option for start-ups. Read more on revenue-based finance if you really need to.
They need to teach this in high schools!