5 Reasons Why You Should Choose Revenue Sharing

Corl
Corl in Corl
Nov 1, 2018 · 3 min read

1. Shared Success

The primary benefit of a revenue sharing investment is that its structure allows participants to focus on shared success. The goal between management and shareholders are fully aligned towards generating sustainable revenue.

2. Dividends

Corl shareholders have the benefit of receiving quarterly dividends derived from startups’ monthly payments. Although the potential for returns is typically less than traditional equity, there is significantly less risk with revenue sharing because payments are linked to monthly revenue and the agreement has seniority over equity in the event of default.

3. Remain In Control

For entrepreneurs, a revenue sharing agreement offers the ability to retain full ownership of their company. Once the Repayment Cap is met, there is no obligation to pay future revenue back to the investor and the entrepreneur retains full ownership and control over the direction of the company.

4. Investment Potential

With the focus of revenue growth at the forefront, the range for potential investments is wider because companies will be evaluated on ability to generate substantial profits and cashflow instead of being candidates for IPO or strategic acquisition. This gives startups a higher chance of being funded.

5. Simplicity

Revenue sharing removes the complexity of equity. Instead of being owners of the business, capital providers are simply creditors. As a result, there is a clearer direction and businesses can focus on sustainable growth and generating returns. The focus on revenue growth instead of future acquisition metrics makes quantifying success much easier.


Corl

Experience the freedom of founder-friendly growth capital.

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Corl

Corl’s revenue sharing makes it easy for crypto investors to invest in startups through a digital token and earn competitive returns.

Corl

Corl

Experience the freedom of founder-friendly growth capital.