This is Part 5 of an 8-part series on royalty or revenue-based investment. Please visit Part 1 for links to the entire series. So what are the main features that turn some investors into a huge fan of the royalty based approach? Let’s take a look. (Yes, we’ll go over the drawbacks later in the [...]
This is Part 4 of an 8-part series on royalty or revenue-based investment. Please visit Part 1 for links to the entire series. “Startup funding is hooked on exits,” says Thomas Thurston, president of Growth Science International. Thurston is right. Equity investors are “exit junkies.” Exits are how they make money. But in the aftermath [...]
This is Part 3 of an 8-part series on royalty or revenue-based investment. Please visit Part 1 for links to the entire series. By now, you should’ve learned about the 2 exit-dependent investment models used by equity investors; understood why some investors are exploring a new investment vehicle that doesn’t depend on exits; and looked [...]
Image by: boo!berry Sophisticated angel investors strongly favor equity over debt. We already know that. * This is Part 2 of an 8-part series on royalty or revenue-based investment. Please visit Part 1 for links to the entire series. These angels are predominantly equity investors who live by the exit-dependent investment models. No exits, [...]
They’re called private equity investors for a reason. In the world of angel investing, the sophisticated bunch are predominantly equity investors — investors who make money on exits. If they don’t see an exit, they don’t get in. Legendary angel investor Ron Conway, for example, said he won’t invest if he can’t think of five [...]