Innovation Funding. A Central Government Bank lending unsecured funds.
Principles:
1. Lend with no expectation of repayment unless the product reaches the marketplace.
2. Take repayment and profit from sales of the product. Funding for product development is a major headache for the entrepreneur. They need a bank that makes NO demands until the product is brought to market. Give the entrepreneur sufficient funds with no demand for repayment unless and until the product is brought to market. Profits can then be taken as a loan repayment and/or a continuous royalty that is easy to figure into the pricing structure. How many products fail to come to market because of inadequate funding or over-rapacious lenders? How many Companies fail to take a step to expand because of overbearing terms for finance? This idea is based upon an organisation established in France in the 70s I think. At that time it had a venture success rate in the 80+% which was higher than most venture capitalist funds and the banks.

user picture Nicholas Howe · 3 years ago · 2 votes · 0 comments
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Geoff Geary Nicholas Howe