background preloader

Concepts

Facebook Twitter

RISKERGY - Forward-looking credit rating for sovereign risks. Revenue Based Financing. Back when we were doing our MBA Monday series on Financing Options For Startups, I got an email from my friend Andy Sack. Andy was one of the first entrepreneurs we funded by in the mid 90s with our Flatiron Fund. He's done something like a half dozen startups since then and he's a veteran in the very best sense of the word. Andy said "You missed an important option Fred – revenue based financing. I've got a new firm called Lighter Capital that does just that".

Fred’s series on alternative financing options has been awesome to follow, especially because it broadens the discussion of how companies can fund business growth when they can’t (or don’t want to) raise venture capital or bank debt. A revenue-based finance (RBF) investment provides capital to a business by “selling” an ongoing percentage of a company’s future revenues to the investor. So, when does it make sense to raise revenue-based funding?

As Fred has mentioned before, big exits are rare for startups. Investment strategy. Passive strategies are often used to minimize transaction costs, and active strategies such as market timing are an attempt to maximize returns. This viewpoint also holds that market timing, that one can enter the market on the lows and sell on the highs, does not work or does not work for small investors, so it is better to simply buy and hold. The smaller, retail investor more typically uses the buy and hold investment strategy in real estate investment where the holding period is typically the lifespan of their mortgage. See also[edit] External links[edit] Wheel of fortune Design and test your investment strategy for a virtual wheel of fortune, optimize your strategies using different utility functions.Virtual stock market Design and test your investment strategy for a virtual stock market, where three stocks and a bank account are available for investing.Sector rotation investment strategy- Engineered investment strategy which outperformed the market.

Convention FORUM Gi.