Bill Flagg is organizing and hosting Bootstrap Loving Angels on April 7th. This is a special angel funding event for bootstrap oriented companies looking for a small amount of growth capital. It’s very informal, so if you meet the criteria below, I’d encourage you to apply to attend.
I’m going to be writing more soon about Royalty Based Financing (RBF), but for now it’s the simple idea of taking on a small amount of capital and paying it back out of sales, typically in combination with some warrants or other form of upside in the company for the investor. RBF can be a great structure because it motivates the investor to help you sell, so they can get their money back. For companies with a bootstrap mentality, it can be a great way to take on some capital to get to the next stage without giving up much equity. I’ll be presenting on RBF at this event, and will probably do it around town at a few other events soon. RBF is how my first company was funded, and I’ve done other deals (notably, RouteSmith) using this technique.
Jump over to Bill’s post on the Bootstrap Loving Angels event if you might like to attend as an angel or as a company that meets the criteria below.
Criteria for Angels
- Colorado based
- Ability to invest up to $300k
- Successful at building their own bootstrapped companies
- Loves bootstrapping entrepreneurs and have invested/helped in the past
Criteria to apply to be one of the presenting companies
- $30k-$200k/month in revenues
- 40% growth over previous year
- Break-even or profitable
- Asking $300k or less in expansion capital
- Colorado based or wanting to move company to Colorado
- Internet-based business
- No outside investors (except a little F&F seed $)