For Angel Investors, many investments are made directly for equity. Either for preferred shares or for common stock. The Seattle Angel Conference uses a convertible note , which converts into equity at some time in the future as a way to limit the negotiation around valuation for very early stage companies. Equity based investments are not suitable for all companies. Sometimes using some form of Royalty or revenue based investment can open up new opportunities.
David Bangs from Energy Friendly Ventures has been actively exploring Revenue Based Financing. He has invested in several companies including Moving Worlds, Earth Equity, AST and Viva Farms using some form of Revenue based financing. Join us for this discussion of Revenue based financing