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CRRoyalty - Royalty Crowdfunding

CRRoyalty

FAQ

The Executive

CRRoyalty is a Royalty Loan Program that allows a CrowdCo (companies seeking funding) to secure capital without giving up any control of their company. CRRoyalty allows CrowdCos to get loans in exchange for royalties on future sales. This is a strategic alternative for crowdfunding as it allows CrowdVestors (those backing a project) the ability to financially support a campaign by receiving royalties in exchange for their financial loan to that company. The CrowdCo receives their capital and gives up no equity in their company.

The royalty loan is a term certain loan which means periodic payments through royalty payments are made for a fixed term. CRRoyalty allows for a buyout clause and there can be a maximum royalty payout. It also allows for the potential of up to 24 months of development for the CrowdCo when no royalty income would be available for the CrowdVestors. Each CRRoyalty project is unique and the amount funded, the projected sales, and the royalty portion of gross sales offered will affect the return on loan projected.

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CRRoyalty can be a royalty loan program with or without principal coverage for the campaign backers. CrowdFund Roundup's CRCover product allows CrowdVestors to protect all or a portion of their royalty loan thus appealing to many different levels of CrowdVestors.

One of the unique features of CRRoyalty is the ability to set levels of funding that activate the facility. The CrowdCo will set a Targeted Raise, which is the amount of money they would like to raise during their campaign. There is also a CRRoyalty Loan Go Point which is the minimum amount that must be reached before the CrowdCo can pull the funds, which means the CrowdCo can move forward. A Maximum Raise can also be set thus allowing CrowdCos to raise funds above and beyond the Targeted Raise amount thus giving them even more capital to be effective. The additional amount of money raised will not affect or dilute the original Royalty Units paid in the initial Targeted Raise.

For further detail on CRRoyalty, please read our CRRoyalty FAQ or please contact us for more information.

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