The following information should be provided prior to having a discussion regarding the possibility of using revenue royalties in the initial financing of a company.

Business product or service description.

Stage of corporate development.

Amount of funding necessary for initial revenues.

Number of years required for the company to become cash flow positive.

Revenues projected for 3 years after receiving funding and Compound Annual Growth Rate of revenues for the following 7 years.

When will company become profitable.

Estimated Pre-tax and NAT margins once profitable.

After receiving this information, a discussion can be scheduled. The information provided will be considered to be confidential and the company’s identity may be coded if it prefers.

 

Arthur Lipper, Chairman                  arthurlipper@gmail.com
British Far East Holdings Ltd.