At Reynders, McVeigh Capital Management, we like to talk about replicable models. If something is successful in one place, and it’s done well, the idea that it can be repeated in other areas can create an amplification of impact.
For the Change Catalyst Fund at Founders First, persistency, consistency, and repeatable components are at the core of how the firm makes revenue-based financing work for diverse-led businesses and their investors. Beyond providing funding that these businesses may not be able to access from traditional sources, Founders First helps businesses integrate technologies so they can run more efficiently as well as teach them tactics for how to grow new customers or markets.
This also means the interests of business owners and investors are aligned. As business revenue increases, the royalty percentage that they can pay back also increases, which keeps investors interested in helping those businesses grow. It’s a hybrid methodology that provides flexibility in funding, it’s low- or non-dilutive, and helps grow generational wealth in underserved communities.
DISCLOSURES: The views expressed above are subject to change and represent the current, good‐faith views of Reynders, McVeigh Capital Management, LLC (“we”) at the time of publication. References to specific impact investments are not intended to be, and should not be interpreted as, solicitations, recommendations, or investment advice. The commentary provided herein is educational in nature.
Please note, Founders First only represents one out of a larger pool impact investments that we recommend to our advisory clients, and we receive a management fee on the client assets invested in Founders First. You should not assume that an investment in Founders First or any impact investment, sector, and/or manner discussed was or will be profitable. Past performance is not an indication of future results. Investment decisions should always be made based on an investor’s specific needs, objectives, goals, time horizon, and risk tolerance.
Certain impact investments are private, non‐public offerings that are only available to accredited investors (individuals or business entities that are allowed to trade securities that may not be registered with financial authorities due to their income, net worth, asset size, governance status, or professional experience). Founders First is open to accredited investors only and we may impose an account minimum on participation in this investment. Impact investments that are private, non‐public offerings may experience greater volatility than traditional investments in publicly traded securities. Advisory clients should carefully review the pertinent documents for each impact investment for a more detailed discussion of the associated risks. Given the high‐risk nature of impact investments, advisory clients should contact their portfolio manager to discuss risks and suitability prior to investing.