Andrew Clapp joins Arctaris Capital to focus on funding companies using the TIGRcub™ security
Chicago, IL – May 7, 2009 Arctaris Capital Partners announces that Andrew Clapp has joined the firm as its Managing Partner. Clapp, a long-time member of the Boston venture community, left Brook Venture Partners in January 2009, which he co-founded in 1998. “I’m pleased to be part of a new movement to provide capital utilizing a unique type of security that corrects many of the problems associated with traditional venture financing,” said Clapp.
Arctaris utilizes a financing instrument known as a TIGRcub™ security (an acronym for Top-line Income Generation Rights Certificates) which enables a company to raise capital that is not dilutive to current shareholders. In exchange for a cash investment, investors are repaid monthly an agreed upon fixed percentage of the company’s top-line [GAAP] gross revenue. The TIGRcub™ is attractive for growing companies, as its underlying obligation is a function of the company’s ability to repay it rather than a fixed schedule of monthly cash payments as are typical of debt obligations and can leave the company short of cash.
Investors are attracted to the TIGRcub™ because it enables them to earn current income beginning shortly after closing instead of waiting 4, 6 or even 10 years before returns are realized in a typical round of equity venture financing. The net returns from TIGRcub™ securities generally fall between those of subordinated debt and equity and are achieved independent of any exit transaction.
Arctaris is partnering with Entrex, Inc., a Chicago-based firm that has developed the TIGRcub™ platform of security structures which it has licensed to Arctaris. Together they have built various financial modeling tools that enable companies, investors, and market makers to evaluate and compare the economics and financial returns of a TIGRcub™ security against traditional preferred stock or subordinated debt investment instruments. “It is a win-win, for investors and for the Company.”, adds Clapp.
Stephen H. Watkins, CEO of Entrex notes “I’m pleased to see that fund managers and professionals like Clapp are applying the benefits of the TIGRcub™ structure and are promoting the use of the Security.”
About Arctaris Capital Partners LLC:
Arctaris provides expansion capital and related corporate financial services to private and publicly held companies looking to utilize the TIGRcub™ security. For more information about the TIGRcub™ and its applications, please contact David Kozhuk at Arctaris Capital, or call 617.535.9928.
About Entrex
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. TIGRcubs™ 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. Visit the Entrex website
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