Alternatives to Angel & VC Financing: Royalty-Based Financing

When: Wed November 07, 2012 9:30 am

Organization: McCarter & English, LLP

Location: Cambridge Innovation Center - One Broadway 5th Floor - Havana Training Room Cambridge, MA 02142


During the 2008 financial meltdown many traditional sources of funding for emerging companies dried up causing some companies and investors to explore alternative investment structures, such as royalty-based financing.  In a royalty-based financing, a company pays its investors a portion of its revenues until the investors have received some multiple of their original investment, but the investors do not receive equity in the company so there is no dilution of existing stockholders.  In this program, Andy Clapp of Arctaris Capital Partners will describe how royalty-based financing works and the pros and cons relative to other methods of financing.

Andy Clapp is the Managing Partner of Arctaris Capital Partners, LLC (, which provides royalty-based, non-dilutive financing to expansion stage companies in the Northeast. Mr. Clapp received a B.S. from Clarkson University and an MBA from Amos Tuck School at Dartmouth College. He has led or participated in numerous seminars on venture capital, mergers & acquisitions, corporate finance and valuation.  He has also written a number of articles on business and entrepreneurship, including “The Perfect Executive Summary” and “Funding Companies in a Deleveraged Economy:  A New Corporate Finance Solution for Companies and Investors.” 

Doors will open for networking at 9:30am.

This program is part of McCarter & English’s ongoing series at CIC on legal and business topics for entrepreneurs and emerging companies.  Programs are held once or twice each month and are open to members of the CIC and their guests, as well as to the greater Boston entrepreneurial community.  Contact: Rick Lucash, 617-449-6568,, @ricklucash  Benjamin Hron, 617-449-6584,, @HronEsq 

About the McCarter & English Emerging Companies Group 
McCarter’s Emerging Companies Group is dedicated to helping entrepreneurs build and finance their businesses. The group is composed of tech-savvy lawyers who have helped build, grow, sell and take public companies across the full spectrum of businesses, including Internet, software, medical devices, new media, life sciences, cleantech, healthcare, consumer products, biotechnology, retail, e-commerce, entertainment, financial services, insurance and telecom.