With the capital markets in a dark age yet our technology in an enlightened one, isn’t it odd that all forms for funding for our Small to Medium Sized (SME) business have dried up? The ICO is Dead and any IPO out there is like a fresh set of Unicorn foot prints, non-existent. Should we not be mixing together a real market need with a matching tech solution?
As the market always manages to find a level and something new emerges it should come as no surprise when I say, ‘The capital superhighwayhas arrived and launched ILOCX a platform which raises capital for worthy companies in a totally unique way. By making mass and immediate sales’ Read more
ILO’s are a revenue-based method of raising capital, they make so much more sense than Crowdfunding, IPO’s and obviously ICO’s because they reward the right thing. Revenue.
Companies became equity dependant over time when equity was easier to find, now it’s harder they have to adjust, it’s this adjustment that will make for an interesting market dynamic. An ILO mixes the people power of social media and the need for companies to get capital and puts them together. Companies seeking capital can first get a quote to make sure that the capital they are seeking makes sense,from a return on capital basis. This is easy and based on pure common sense.www.ILOquote.com does it in minutes.
Once the numbers work, we take a look at the readiness to make revenue, can they scale? If they can and the product or service is good after due diligence and various checks, its approved or denied.
For the companies which fit all the parameters they can list the ILO that is structured just for them on ILOCX and bring in sales of the ILO, which in turn brings in another element. ILOers (buyers of the ILO) are required to promote the product or service on social media to ‘qualify’ the license and trigger inclusion into the royalty pool.
In short, an ILO (Initial license Offering) is a license, a right to promote and or sell the underlying product, like a mini franchise or a commission for likes, shares and reviews. For the passive buyer he can qualify the ILO and wait for the royalties, on the other handan aggressive one can market it and create direct purchases by using unique URL’s and check out codes. This activity generates additional direct commissions which differ from ILO to ILO.
Imagine something everyone can use, understand, copy, interact with, be part of, add to, make money from, help others make money from, be entertaining, accessible, fast, fair and secure.
ILOCX has launched its first exchange to sell ILO’s at www.ILOexchange.comthis platform allows companies to list without the need for a listing agent and launch an ILO to raise capital and enhance sales.
ILOCX has now launched a second platform to allow anyone holding any or most recognised crypto to use that crypto currency to BUY ILO’s.
This is huge because there is a huge pile of capital sitting in crypto $300,000,000,000 to be precise. This capital is untouched as the original buyers of these currencies bought early and are sitting on millions individually and they can’t really use it for much else, so it trades back and forth into different currencies. Now you can buy an ILO with your Crypto at www.ILOcrypto.com so if you’re a company seeking capital and you are frustrated the market is dried up, head to www.ILOquote.com and get a term sheet, and if successful head to www.ILOexchange.com and list your ILO.
Here is an example.
First a summary of the basic premise
ILO’s are set for 3 years, they pay royalties each year based on the gross revenue of the company. Companies that issue ILO’s set a maximum number of units for a defined price and royalty is set as a percentage of sales. Buyers must qualify their ILO and by doing so promote the company they bought into.
A new company making super food infused tea with some online sales seeks $500,000 to take them to the next level.
They have revenues of $200,000 but with the investment will track $1.5m for the following 12 months.
The ILO is structured to sell 20,000 units at $25.00 per unit. With a 3-year term. At the end of 3 years the company elects to either roll it again, buy them out for cash at the last trading price or convert them to shares in the case where the company is big enough to go public on a recognised stock exchange.
The royalty is set at 10% of gross revenue (like a commission)
Projecting 1.5 million in sales makes a royalty payment due of $7.50
This makes the ILO trade at a multiple of 10 so $75.00
The buyer paid $25 got 7.50 as a first royalty a year later and the value went up to $75.00, He can now sell this on our secondary trading platform or keep it for the year two royalty pay out, this buyer is happy.
The buyer had to qualify the ILO. This means they need to disseminate information about the company to their social media contacts. We know everyone has at least 200 people in their network, so we use this base line figure.
20,000-unit holders with 200 contacts means 4,000,000 at a minimum see this information.
The tea is $20.00 per tin and has a margin of 60% so $12 profit.
If 1% of the 4,000,000 people that saw the information buy one tin, it adds $800,000 to the revenue of the tea company.
If we add that the royalty above it means the ILO paid $11.5 per unit not $7.5 and the value goes to $115.00 instead of $75.00.
The company gave away no equity and they didn’t take on any debt
They increased sales and,
They have 20,000 warriors promoting their tea and stand ready to raise another round of funding but at $120.00 per unit instead of $25.00 a year earlier.
This is the power of ILO.
Rewarding the company for a great product or service and rewarding the ILOer for telling so many people about it that sales jumped, the result is a sustainable business was born.