The entertainment industry has used revenue-based financing successfully for decades—so why not replicate that model in other industries? Founders First does just that, creating opportunities for diverse-led businesses through revenue-based capital and providing a predictable income for their investors.

 

Unlike equity-based financing, where investors only receive liquidity through an exit, Founders First’s Change Catalyst Fund performs more like a bond. Investors receive a quarterly distribution that pays them a reasonable rate over a seven-year term.

 

 

 

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