GETTING STARTED
What is Beyond Equity?
Beyond Equity is the world’s first revenue exchange on a mission to help companies access the future of funding by moving beyond equity – to revenues. E-commerce, mobile apps, SaaS and gaming companies can unleash an asset they already own to raise growth capital – their revenues.
Beyond Equity does this by helping companies IPO their future revenues on our exchange (same concept as IPO-ing equity on a stock exchange) to finance their businesses from the institutional investors already on our platform.
Beyond Equity does this by helping companies IPO their future revenues on our exchange (same concept as IPO-ing equity on a stock exchange) to finance their businesses from the institutional investors already on our platform.
What makes Beyond Equity a highly attractive FInancing option for companies?
We are founders ourselves and we understand how tough it is to sell a chunk of a business you built from the scratch. We started with a mission to find a better solution than equity financing and used our deep past experience in finance to come up with Beyond Equity.
We have a clear answer for why founders should sell revenues instead of equity to raise funds:
Still have more questions on why revenue IPOs work? Join our wailist now and we'll be happy to assist.
We have a clear answer for why founders should sell revenues instead of equity to raise funds:
- Get a premium to equity – For an investor, revenue shares are more valuable than equity shares as revenue shares shield them from the bottom line (cost). Hence, when you raise through Beyond Equity, you get a much better valuation of your business than equity. In turn, this means that companies end up selling much less percentage shares when raising through a revenue IPO, hence maintaining much more control over their business. This for us is the key factor that makes revenue shares a much better instrument for financing startups than equity shares
- No commitments, yes flexibility – When you sell equity shares, generally it is a lifelong commitment – once you raise from a VC, for example, your equity is gone forever. This can prove restrictive for companies, especially if your equity investor’s vision does not match yours. Beyond equity gives you flexibility like never seen before in venture capital funding – you can repurchase / buyback your sold revenue shares from RIPO investors at a price you agree to before fundraising on Beyond Equity. Additionally, this repurchase can happen whenever you believe is right for your business – you know best what works for your growth and we’re just here to facilitate it
- No dilution – Unlike equity, with Beyond Equity you maintain ownership and control of your company. As you grow, we grow, however we never tell you how to grow or to give us a chunk of your business
- Quick, hassle-free – After you sign-up and we have all the data we need, our approval process is completed within 2 days, though typically it only takes a few hours. Once you’re approved, you can review your suggested Revenue IPO (RIPO) terms, and post your RIPO. Once your RIPO is subscribed, the transfer to your bank account is instant
Still have more questions on why revenue IPOs work? Join our wailist now and we'll be happy to assist.
Is Beyond Equity a substitute for Venture Capital?
Beyond Equity works alongside or instead of venture capital, and was established to give companies a funding option beyond equity financing. At Beyond Equity we understand that venture capital is not the best way to finance for some companies, and we’re on a mission to give those companies a better alternative.
Is Beyond Equity similar to a loan / venture debt?
No, unlike with loans / venture debt, we do not take any collateral, warrants or personal guarantees or charge any interest.
We instead turn your future revenues into securities, allowing them to be offered in Revenue IPOs (RIPOs) on our exchange. RIPO investors subscribe to a company’s RIPO and pay the offered price for revenue shares.
We instead turn your future revenues into securities, allowing them to be offered in Revenue IPOs (RIPOs) on our exchange. RIPO investors subscribe to a company’s RIPO and pay the offered price for revenue shares.
Is Beyond Equity similar to Revenue Based Financing?
Short answer – NO
Long answer – Beyond Equity is introducing a completely new form of financing, called Shared Growth Financing (SGF) which is a novel method for companies to finance their growth by selling a share of their future revenues to investors, indefinitely (same way as equity is sold indefinitely, unless it is repurchased by the company).
Unlike RBF, SGF has an angle of perpetuity to it, hence enabling companies to sell a much smaller percentage of their revenues, to raise more capital than RBF.
Long answer – Beyond Equity is introducing a completely new form of financing, called Shared Growth Financing (SGF) which is a novel method for companies to finance their growth by selling a share of their future revenues to investors, indefinitely (same way as equity is sold indefinitely, unless it is repurchased by the company).
Unlike RBF, SGF has an angle of perpetuity to it, hence enabling companies to sell a much smaller percentage of their revenues, to raise more capital than RBF.
ONBOARDING
Does my business qualify?
We would love to talk to you to understand if Beyond Equity can meet your company's financing needs. We typically work with companies in the e-commerce, SaaS, direct-to-consumer, gaming and app development sectors. Join our waitlist now if you have:
1. Two years of trading history
2. £500k of yearly sales
3. 30% y-o-y growth
Still have questions on whether you qualify? Join our wailist now and we'll be happy to assist.
1. Two years of trading history
2. £500k of yearly sales
3. 30% y-o-y growth
Still have questions on whether you qualify? Join our wailist now and we'll be happy to assist.
How does raising funds on Beyond Equity work?
Our process is super quick and easy, but at any point if you have a question, just contact us and we’ll be very happy to help you out:
1. Connect us to your:
a. bank through Plaid, our banking partner
b. accounts through Xero or csv files
c. sales and marketing platforms through Stripe or csv files
2. Post approval, review your suggested Revenue IPO (RIPO) terms. These terms represent the projected value of future revenue, as of today
3. Either accept the suggested terms or post your own terms, this will make your RIPO go-live
4. Investors will subscribe to your RIPO and funds will be transferred to your bank account instantly
The easiest way to get started is to join our commitment-free waiting list – it takes just a few minutes.
1. Connect us to your:
a. bank through Plaid, our banking partner
b. accounts through Xero or csv files
c. sales and marketing platforms through Stripe or csv files
2. Post approval, review your suggested Revenue IPO (RIPO) terms. These terms represent the projected value of future revenue, as of today
3. Either accept the suggested terms or post your own terms, this will make your RIPO go-live
4. Investors will subscribe to your RIPO and funds will be transferred to your bank account instantly
The easiest way to get started is to join our commitment-free waiting list – it takes just a few minutes.
How long does the onboarding process take?
After we have all the data we need, our approval process is completed within 2 days, though typically it only takes a few hours
Do you contact my customers?
No. Beyond Equity does not interfere with customer relationships.
How do I report the cash inflow and outflow received from Beyond Equity in company financial statements?
We recommend that you work with professional financial or tax advisors to understand how your should show funds raised from Revenue-IPOs in your books
PRICING
What fees will Beyond Equity charge for IPO-ing my revenues?
There is zero cost to join Beyond Equity and to apply for a Revenue IPO (RIPO).
When you choose to fundraise via our exchange through a RIPO, we charge a fixed transaction fee on the financing you get. We will never charge you for listing your revenues on the exchange if you choose not to accept the RIPO terms or proceed with the funding due to any reason. You will know exactly how much you are paying up front before you accept any funds.
When you choose to fundraise via our exchange through a RIPO, we charge a fixed transaction fee on the financing you get. We will never charge you for listing your revenues on the exchange if you choose not to accept the RIPO terms or proceed with the funding due to any reason. You will know exactly how much you are paying up front before you accept any funds.
What will I end up paying to the RIPO investors?
Revenue IPOs (RIPOs) work the exact same was as an IPO of equity shares. Just like a company pays dividends to its equity shareholders, you’ll be expected to pay your revenue shareholders periodic dividend like pay-outs called revenue pay-outs.
Let’s take an example, assume that in May 2022 your revenues are £100,000 and you have Revenue IPO-ed 1% of your revenue shares (i.e., 1% of your total revenues). Hence, in May 2022, you will owe your RIPO investors 1% of £100,000 i.e. £1,000.
Let’s take an example, assume that in May 2022 your revenues are £100,000 and you have Revenue IPO-ed 1% of your revenue shares (i.e., 1% of your total revenues). Hence, in May 2022, you will owe your RIPO investors 1% of £100,000 i.e. £1,000.
REVENUE IPOs
What is a Revenue IPO?
Revenue IPOs (RIPOs) are a method for companies to sell their future revenues in the form of revenue shares (percentage of revenue) to institutional investors in a private offering. To put it differently, companies receive a price today that represents the value of their perpetual future revenues.
What percentage of revenue can I sell?
Companies can sell max 5% of future revenues at a price that you believe represents the projected value of your future revenues.
Will my revenue be stuck perpetually?
Think of it as an equity stock IPO. Companies have the option to buy-back (repurchase) shares from the open market where you make an offer to the RIPO investor that currently owns your revenue shares.
However, we do understand that some companies prefer to have the terms fixed before raising any funds, and for those we have the option to fix / pre-agree a buy-back / repurchase price that you may execute at any time.
However, we do understand that some companies prefer to have the terms fixed before raising any funds, and for those we have the option to fix / pre-agree a buy-back / repurchase price that you may execute at any time.
How will my Revenue IPO terms be determined?
Since we are an exchange facilitating the sale of revenue shares, we only suggest the terms for Revenue IPOs (RIPOs). It is up to the company to accept those terms or to post their own RIPO terms on the exchange. We suggest companies to consider adopting the terms suggested by Beyond Equity to maximize RIPO subscriptions.
Beyond Equity’s suggested terms are based on the company’s profile and the data our platform analyses. We take your revenue data, key performance and financial metrics and other data into consideration.
The easiest way to get your terms is to join our commitment-free waiting list – it takes just a few minutes.
Beyond Equity’s suggested terms are based on the company’s profile and the data our platform analyses. We take your revenue data, key performance and financial metrics and other data into consideration.
The easiest way to get your terms is to join our commitment-free waiting list – it takes just a few minutes.
What do typical Revenue IPO (RIPO) terms look like?
RIPO terms are in the form of “Price per 1% or 100 BPS of future revenue”. This price represents the projected value of your future revenue, your business's financial standing, key metrics amongst other things. You can see examples of how the exchange will work here.
DATA
What data will I need to provide?
The best part about IPO-ing your revenue with Beyond Equity is the easy and quick onboarding process that ingests your business’s data to verify your business performance. This data-driven approach means that there are no personal guarantees or credit checks. No pitches, no stress, our offers are built purely on your successes. We’ll need you to connect us to your:
1. Bank through Plaid, our banking partner
2. Accounts through Xero or csv files
3. Sales and marketing platforms through Stripe or csv files
Before we can send you the funding, we’ll also need to verify the identity of key people in the company. We just need a couple of basic details including, a quick selfie and a photograph of an official photo ID.
1. Bank through Plaid, our banking partner
2. Accounts through Xero or csv files
3. Sales and marketing platforms through Stripe or csv files
Before we can send you the funding, we’ll also need to verify the identity of key people in the company. We just need a couple of basic details including, a quick selfie and a photograph of an official photo ID.
Why do I need to share my data before accessing the exchange?
Linking your accounts is how we confirm that you’re eligible to use the exchange. By syncing with your systems, we’re able to assess the health and scope of your business and provide you with suggested RIPO terms.
How safe is my data?
At Beyond Equity security is our foremost priority and is built in the DNA of our exchange. We understand the importance of protecting our customers’ data, and protect all financial, personal, and other sensitive data using a plethora of security technologies and processes.
These include encryption of data, access management to data, segregation of roles and responsibilities, and continuous monitoring of systems. Our data security processes are regularly reviewed and we will never sell your data to third parties; you can see our privacy policy for more details.
These include encryption of data, access management to data, segregation of roles and responsibilities, and continuous monitoring of systems. Our data security processes are regularly reviewed and we will never sell your data to third parties; you can see our privacy policy for more details.
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