Entrepreneurs in search of investment capital walk a financial tightwire.
In traditional angel investment or venture capital circles, the give-and-take is relatively clear: The entrepreneur cedes equity in exchange for much-needed capital. That can still prove a bitter pill for some small business owners, frustrated by the valuation debate or worried about losing control of their dream.
That’s why entrepreneurs should take note of an investment model beginning to pick up steam: Royalty based financing.
It’s actually a decades-old concept that’s been adapted to a more modern venture capital environment. And many entrepreneurs are finding it a refreshing change from the traditional model.
In short, it’s relatively straightforward. Investo