London-based fintech startup Beyond Equity is preparing to launch its revenue exchange to let companies IPO their revenues to raise funds.
Beyond Equity (previously known as TurboDash) describes itself as a stock exchange for revenue.
The tech firm explains: “Convert your future revenue to upfront capital by selling your revenue shares instead of equity shares.”
Beyond Equity notes: “We are committed to revolutionising how funding is structured and to give back control to founders by avoiding dilution.”
The concept is very clear and Beyond Equity believes there are several benefits to its approach.
For example, users will be able to maintain ownership and control of a company; repurchase revenue share from the open market; and track performance of revenue shares, with the ability to buy-back from the open market.
With the amount of UK tech startups popping up and the number of firms securing (or looking) for funding, Beyond Equity’s revenue exchange may well have good prospects for growth.
For institutional investors, they can of course buy revenues of companies; subscribe to revenue-IPOs (RIPOs); and buy, sell and trade revenue shares.
Beyond Equity points out various advantages for these investors – such as dividend-like payouts; capital appreciation as the value of investment increases with company growth; and that investors can be shielded from cost fluctuations. The startup also lets institutional investors choose to run their portfolio on autopilot.
The fintech startup’s site has a waitlist at present.
Beyond Equity was officially founded last year by Radhika Rajpal and Rayan Saleh. Their experience is a useful mix of Microsoft, Barclays, McKinsey & Company and SNB Capital.