Draper Oakwood Royalty Capital, a London, UK-based investment company, has been formed to provide growth businesses with an alternative form of growth capital.
Led by Aamer A. Sarfraz, founder & CEO, the firm will make “R Round” (Royalty Round), which are investments in exchange for a share in future revenues. In this way, entrepreneurs don’t have to give up any equity or control in their business. Nor do they have to provide collateral or guarantees like they would do a bank.
Royalty-based finance is already used in many industries, including oil & gas, healthcare, and mining and Draper Oakwood now wants to make this type of capital available to businesses across other industries.
The firm, established with inspiration from Tim Draper, who serves as a Senior Advisor, intends to start investing early next year with a focus on the UK and Europe.