Investing isn't just for the wealthy. It’s for anyone looking to secure their financial future and support the people, ideas, and companies they care about. Even though everyone has the chance to invest, it can be challenging to find the right investment opportunity. That's where we come in. We're passionate about supporting small businesses and empowering everyday people to invest in what they believe in.
Our mission is to level the playing field by supporting underserved communities, including veteran-owned businesses, women and minority-led businesses, local businesses, and rural businesses. We understand the challenges entrepreneurs face in raising capital, and we want to help them grow and thrive.
Through our range of alternative investments, we offer investors the chance to support small businesses they care about while growing their portfolios.
In this blog post, we'll delve into the specifics of the securities we have and show you the different ways you can invest.
Revenue Share Agreements (RSAs)
Revenue Share Agreements, or RSAs, are a unique investment option that allows individuals to receive a share of a company's revenue in exchange for their investment. The purpose of RSAs is to provide businesses with an alternative financing mechanism while giving investors the opportunity to earn returns based on the company's success.
When considering an RSA, it's important to understand its components. There are two key components. One is the principal multiple, which determines the total return potential on your investment represented as a multiple. Usually, the company raising capital commits to a repayment of between 1.5 and 2.0 times the investors’ money back. The second component is the percentage of top-line revenue that will be set aside to pay back the investors until they’ve received the target multiple.
The planned timing of the expected returns is based on the company's projected revenue. The actual timing is based on the actual revenue performance of the company in the future. .
RSAs offer several advantages for both small businesses and investors. For businesses, RSAs provide an alternative to traditional financing options, allowing them to raise funds through a debt offering that is cashflow friendly to the company, while, at the same time, investors have the potential to earn returns based on the company's performance, creating a mutually beneficial relationship.
Small Business Bonds
Another investment option offered by companies is small business bonds. Bonds are a form of debt financing where investors lend money to a company in exchange for regular interest payments and the return on the original investment at the maturity date. Bonds work particularly well in business scenarios where there is a delay between launching the business and revenue, which is often the case where a building must be built first or a product needs to be developed, etc.
Small business bonds come with a specified coupon rate, which determines the interest payments investors will receive. These bonds have a maturity date, which signifies when the company is obligated to repay the principal amount. The advantage of bonds for both companies and investors is that they provide a stable source of financing for companies while offering a reliable income stream for investors.
Utilization of bonds is not limited to large companies anymore; small businesses can also benefit from this financing option. Bonds can help startups with growth or expansion plans, providing them with the necessary capital to fuel their ambitions. By issuing bonds, companies can access funding from a wider range of investors, allowing them to diversify their investor base.
How These Securities Work for Business Owners
For small businesses, RSAs offer a valuable tool for raising capital. With RSAs, businesses can tap into a broader pool of investors while avoiding significant traditional bank debt obligations. This alternative financing option allows companies to more accurately time debt payments to cash flow. RSAs create a win-win situation by aligning the interests of businesses and investors.
For startup growth or expansion, bond financing can be a game-changer. Today small businesses are increasingly leveraging bonds to fund their growth plans, ensuring a source of capital while providing stability and flexibility for companies, giving them the financial foundation needed to thrive.
How These Securities Work for Investors
RSAs offer the potential for impressive returns, but it's important to consider the risk factors. The potential returns are tied to the success of the company, and investing in early-stage businesses inherently carries a level of risk. Conduct thorough research and assess the market viability of the product or service before making an investment decision. By carefully considering the potential rewards and risks, investors can make informed choices that align with their financial goals.
Investing in SLICE2 provides opportunities for income generation. Investors receive a share of the net operating income, creating a potential revenue stream. Additionally, if the property appreciates in value, investors benefit from the increased sales price. Whether you're looking for regular income or long-term capital appreciation, SLICE2 offers the potential for financial growth.
Bonds provide investors with a stable income source through regular interest payments. This predictable cash flow can be a valuable addition to your investment portfolio. Moreover, the return on the original investment at the maturity date ensures the preservation of capital, giving peace of mind to investors.
Invest In Your Financial Future
Investing in your financial future by investing a portion of your investments in private small businesses isn’t the domain reserved for the wealthy anymore. We're committed to empowering individuals from all backgrounds to invest in what they believe in and level the playing field for underserved businesses. Our range of alternative investments, including Revenue Share Agreements (RSAs) and small business bonds provide investors with accessible and innovative ways to grow a portion of their portfolios while supporting small businesses they care about and believe in.
It's important to understand the specifics of each investment opportunity to make informed decisions that align with your financial goals. Investing in early-stage businesses inherently carries risk, so it's crucial to conduct thorough research and evaluate the potential rewards and risks. Contact us or check out our open investment opportunities to get started!