Entrex Announces over $3 Billion of Revenue Securities Issued in Recent Years
Use of centuries old royalty-style investments has skyrocketed in the past decade with Entrex TIGRcubs® leading in transparency and liquidity to investors.
CHICAGO, July 21, 2010 - Available data shows that $3.3 Billion was transacted via revenue-based financing techniques during an 18 month period of 2007 and 2008. This marks a 25x increase in the use of revenue interest investment structures since 2000.
First issued in 2006, Entrex’s patented revenue-based security, the TIGRcub®, brought efficient revenue based transactions to institutional and accredited investors who never took the time to explore or structure them before. Entrex CEO, Stephen H. Watkins explains that “TIGRcubs®are Top-line Income Generation Rights Certificates. We developed this tool specifically to harness business growth for investors—in a way that equity holdings are unable to do. TIGRcubs® are designed to ensure transparency and liquidity for investors, coupled with the types of risk-adjusted returns typically sought.
He continues, “The relative simplicity of the instrument, and our systematization the transaction process, enables us to greatly expand the use revenue-based transactions into industry sectors that historically hadn’t embraced the model. TIGRcubs® efficiently provide new access to the broader scope of $5M-$250M annual revenue companies—the important growth sector that represents 50% of the U.S. GDP and, historically, more than 65% of new job growth.”
Dubbed “intelligent risk-taking” by McDermott, Will and Emory partners Jeffrey A. Jung and John P. Tamisie in their June 2009 article in The Deal Magazine, it’s noted that as the community of investors and sellers of revenue-based securities grows we will continue to see expansion in the use of these attractive alternatives to traditional financing models.
Watkins points out that while Jung and Tamisie indicate a heightened interest from a broad range of potential revenue-interest issuers “the scalable opportunity is using revenue-interest securities for the previously hard to reach $5M-$250M companies who commonly experience capital needs above the capabilities of friends and family investors, but remain far below the purview of Wall Street investment bankers. Revenue-based securities have already become a very credible source for capital—literally an alternative to the IPO path that has not brought wide funding success to companies for nearly five years now.”
Entrex is the place to find, research, track, manage and trade securities for entrepreneurial companies. Through the TIGRcub® security structure, Investors and Issuers are brought together in a Capital Market System that serves both private and public companies. TIGRcub® provide Investors with monthly income, liquidity and investment returns that are not based on exit events, or exposed to the volatility of the equity capital markets—all while providing Issuers a non-dilutive capital solution with risk-adjusted pricing simulating either debt or equity structures. www.entrex.net.
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