Investing in early-stage companies is becoming more popular than ever; and with operating costs at an all-time low, easy access to global markets, and the emergence of new technologies coupled with a lack of innovation among incumbents, the number of small fast-growing companies is higher than ever before. With the influx of these fast-growing companies, the need for adequate funding is essential to fuel expansion and innovation. However, the funding market today is centralized, fragmented, inaccessible to retail investors, and lacks the sufficient capital needed to support the growth of the tech ecosystem. Worldwide, this had led to an early-growth capital gap of over a $100 billion, which continues to grow each year. To resolve this capital gap, investors and entrepreneurs are reconsidering the way that capital is raised today, which is evidenced from the over $2 billion raised during Initial Coin Offerings (ICOs) in 2017.
Companies operating with less than 20 employees represent 98% of the total funding market, and yet have the most challenge with raising capital. Traditionally, investments in companies are structured via equity through Venture Capitalists (VCs) and Angels, or for later-stage companies, via a debt instrument offered through Banks. However, these options are starting to present their inadequacies for both entrepreneurs and investors due to their long fundraising timeframes, lofty eligibility criteria, inflated cost of capital, misalignment of investor-entrepreneur incentives, lack of investor liquidity, dilution of founder influence and control, high capital hurdles, long-term commitments, unstable investment pipeline or deal flow to manage diversification, and restrictive regulatory requirements.
Despite the size of the small business funding market, only 11% of companies have considered non-traditional sources of funding for raising capital. Our vision is to solve the problems of traditional investing by combining three disruptive concepts: Revenue-Sharing, Crowdfunding, and the Blockchain. At Corl, we will achieve this vision by providing revenue-sharing (i.e. royalty) investments to companies underserved by traditional finance and enable investors to benefit from these revenue streams by owning equity in our company via a digital token issued on the blockchain.
Unlike most financing companies, Corl does not issue debt or equity investments, but rather, “dequity”. Companies that meet our strict funding requirements are financed through a revenue sharing arrangement, whereby companies receive upfront capital in exchange for a percentage of future monthly revenue until some pre-determined repayment amount is met. This type of financing structure is mutually beneficial for Corl and the company receiving funding because the objective for both parties is to maximize revenue.
Unlike most token offerings, the CRL token (CORL) represents equity ownership in Corl, the company that invests directly in private companies with revenue-sharing agreements. In addition to equity ownership, the token issues dividends on a quarterly basis based on a fixed percentage of the company’s profits. Through the token offering, investors from around the world will have the opportunity to participate in the revenue growth of early-stage companies, without the disadvantages associated with traditional investment options.
We believe it is time for investing in early-stage companies to become more intuitive and evolve into what we call, Capital-as-a-Service.
Corl Financial Technologies Inc. (Corl) is launching the Corl Token (CORL), the world’s first revenue-sharing token designed to support and participate in the growth of emerging technology companies. By design, CORL represents equity ownership in Corl, a company that provides revenue-sharing financing to high-potential early-revenue companies. The Corl token utilizes blockchain technology to issue tokenized dividends to its investors and provide a transparent and KYC-compliant decentralized market for peer-to-peer (P2P) token transfer. Unlike traditional tokens on the market, CORL is based on a profit-sharing model, whereby investors receive a continuous stream of quarterly dividends in the form of Ether (ETH), based on future earnings of Corl. Corl tokens will be implemented on the Ethereum public blockchain and adhere to the ERC20 protocol.