Draper Oakwood specialises in royalty capital. Put simply, we will provide businesses the equity capital they need to grow, in exchange for a percentage of future revenues. We call this the “R Round” – a Royalty Round.
Royalty capital is a common way to raise money in many industries, particularly oil & gas, mining and healthcare. Draper Oakwood will make royalty capital available to all types of growth businesses, provided they have strong revenues and gross margins.
The R Round is uniquely non-dilutive. Shareholders will retain their ownership, maximising value for future fundraising rounds
Management teams and existing investors will retain control of their business. We will not take board seats.
Customized to your revenues
Businesses pay more when revenues are higher, and less (or nothing) when revenues are low. Royalty payments will continue until we reach an agreed royalty cap – expressed as a multiple of the initial equity investment.
No personal guarantees
Unlike banks, we will never ask for personal guarantees. We will invest based primarily on your revenue generating potential.
Ability to return capital
Capital can be returned early, subject to certain terms.