Royalty Financing
Content
Definition
Royalty Financing is a method of raising funds where investors provide capital in exchange for a percentage of future revenues.
Usage and Context
Royalty financing involves raising money by offering investors a share of future revenues.
Frequently asked questions
- What is a royalty stream? A royalty stream is regular payments made to an investor or creator based on ongoing sales or use of a product or intellectual property.
- What`s the difference between equity and royalty? Equity gives you ownership in a company, while a royalty is a regular payment made for using an asset, like intellectual property.
- Which is better, royalty or debt? Royalty gives ongoing income, while debt offers a lump-sum loan.
Benefits
Royalty financing raises funds by giving investors a percentage of future revenues.
Conclusion
Royalty financing gives investors a portion of future revenues in return for their investment.
