For Early-Stage Firms
It takes more than a great idea and persistence for an entrepreneur to succeed in today’s economy. Ben Franklin is uniquely qualified to deliver the complement of services that early-stage firms need.
For a start-up company to move from concept to successful commercialization, it takes marketing ingenuity, sound legal advice and accounting expertise. It also takes seed funding.
We’ve helped start 470 new technology companies. Ben Franklin investments are provided in the form of subordinated debt:
- An eight-year term, with interest payment obligations beginning after the completion of the funded activities.
- Interest accrues quarterly, and the loan includes a detachable warrant feature.
- The principal and any accrued, non-paid interest are due by the end of the eighth year in the form of a balloon payment.
The pricing of the warrant is based on a pre-determined valuation. A start-up company will have a $1, $2 or $3 million dollar valuation, depending on the commercialization status, the experience of the management team, and the financial commitment of the founders and any investors. The warrant is exercised by Ben Franklin at a major liquidity event.