RevenueLoan Blog

April 14, 2011

RevenueLoan at 2011 Angel Capital Association Summit

Filed under: news — Christian @ 10:26 am
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Who would have thought investors would be packed standing-room-only at the crack of dawn to discuss “Revenue Structured Investments”? Sounds like a snoozer if there ever was one. Yet anyone showing up last minute might have thought they walked into a Southern-style auction as hands shot up and the lively discussion escalated. Why the excitement?

As panelist Thomas Thurston put it “it turns out, revenue based investing is sexy. It’s a way to invest in ventures without depending on an exit or liquidity event for great returns. Exit markets were relatively dead around five out of the past ten years. That’s a whole decade with around 50% illiquidity. As investors we must learn to fund ventures regardless of fickle exit markets.”

Thomas Thurston is an advisor to Seattle-based RevenueLoan and Executive Director of the Revenue Capital Association. He was joined by Rob Wiltbank, Professor at Willamette University and Venture Partner at Montlake Capital and Revenue Capital Management. The third panelist, Arthur Fox, has done revenue-based venture investments for nearly 20 years and is currently directing his third such fund, Eureka Partners.

Addressing angel investors and leaders of regional angel groups at the 2011 Angel Capital Association Summit in Boston, the panel covered top concerns including high level revenue-based concepts, alternate deal structures, and the implications of specific contractual provisions. The newly formed Revenue Capital Association was also discussed, generating strong enthusiasm and interest.

In summation, Thurston noted “as investors, we’ve always expected our portfolio companies to innovate. Ironically, what the past decade has shown is that companies need us investors to innovate too. We can’t sit back, use the same tools and expect a different result. It’s been a hard decade for ventures and investors alike. The path forward depends on our ability to innovate together, and revenue-based funding one of those promising innovations we’ve all been waiting for.”

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