It takes more than a great idea and persistence for an entrepreneur to succeed.
For a start-up company to move from concept to successful commercialization, it requires an outstanding management team, a product or service that addresses a real need, marketing ingenuity, sound legal advice, and accounting expertise, as well as seed funding. Ben Franklin is uniquely qualified to deliver the funding and support that early-stage firms need. We’ve helped start 520 new technology companies.
Ben Franklin has a Solutions Network of proven experts—seasoned business professionals; technical, marketing, and financial experts; and college and university faculty and staff—who are experienced in helping young firms succeed.
Ben Franklin investments in early-stage firms typically range from $30,000 to $100,000 for each tranche, with a maximum total investment over several years reaching $300,000 to $400,000. We take calculated risks investing in young, unproven companies. We assist early-stage firms as they prepare to raise additional capital and provide them with an important initial endorsement. Being a member of the Ben Franklin portfolio is well-respected among follow-on funders – angel investors, venture capitalists, and other institutional investors with whom Ben Franklin has strong relationships.
Ben Franklin investments are provided in the form of subordinated debt:
- An eight-year term, with interest payment obligations beginning after the first year.
- Interest accrues quarterly, and the loan includes detachable warrants.
- 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 warrants is based on a predetermined 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 warrants are exercised by Ben Franklin at a major liquidity event.