Access to funding is one of the primary challenges faced by startups. No matter how innovative a project idea is, when there is little or no capital to bankroll its takeoff and development, it dies off at incubation. The traditional funding market asides having limited capital to fund the high influx of emerging companies also presents very strict eligibility and regulatory requirements for both entrepreneurs and investors. In order to meet up with this funding gap, investors and entrepreneurs may switch to alternatives to traditional capital funding. Since Initial Coin Offerings have proved to be an easier alternative to fundraising, tech companies are finding it more preferable to raise capital to drive their expansion and growth. Corl is set to solve this critical challenge of raising growth capital with an innovative model based on revenue sharing.
Corl Financial Technologies Inc. is a government-registered and regulated financial technology organization based in Canada with track record of success and recognition in investment, risk, and lending domains. The company is the first company in the world to offer 100% of its equity ownership as a digital token (CORL token). Corl strongly believes that emerging technology companies should have access to capital they require for growth at their own pace and on their own terms. The company pursues this vision by offering high-potential startups the needed capital in the form of Capital-as-a-Service (CaaS). Corl will be the model platform that aligns the interests of entrepreneurs and investors in a transparent and secure manner. High-potential emerging companies will be able to access capital, subsequent to meeting Corl’s eligibility criteria for funding, without losing ownership rights or control of their company. The proposed repayment plan is based on revenue sharing.
Concept of Revenue-sharing
Revenue-sharing is an agreed investment plan in which investors’ capital in a company are repaid as a stipulated percentage of its gross revenue. This percentage is called revenue rate, and it is usually 2-10% of the loan. Corl’s revenue-sharing model provides dequity, a perfect alloy of debt and equity, presenting mutual benefits to both entrepreneurs and investors. It is a win-win agreement.
Benefits to Entrepreneurs (Companies)
Corl is offering entrepreneurs access to funding that they need to develop and grow their business once they satisfy the requirements for funding. With the revenue-sharing model, entrepreneurs enjoy some flexibility as no rigid repayment is involved. Loan repayment depends on the monthly revenue generated by the company, and the repayment cap is negotiable, often within 1.5-2.5× the principal amount. Therefore, Corl enables companies to grow at their own pace and pay as they grow.
Benefits to Investors
CORL token is completely an equity ownership in Corl, therefore holders can boldly lay claim to ownership in tangible real-value asset, an uncommon feature in the crypto space. Corl is an opportunity for investors to participate in emerging fintech ecosystem with less risk and assurance of returns on invested capital. Corl’s revenue-sharing provides investors a continuous stream of income in the form of monthly dividends paid in ETH.
How Corl Works
Corl is leveraging on blockchain technology to build Corl Platform. The platform provides the tools and features aligning the interests of both investors and entrepreneurs. The Corl Platform has two portals, business platform and investor platform. The business platform is designed for companies to apply for funding, review contractual terms of investment, manage loan disbursement, and track payments. Applications are subjected to quantitative and qualitative risk assessment in a timely manner to determine the worthiness of the company for fund approval.
The investor platform is designed specifically for investors to purchase, manage, and track their investments and by extension the performance of Corl. Investors are required to register and comply with regulations such as Know-Your-Customer (KYC), Anti-Money Laundering (AML) and others to be accredited or whitelisted as an investor on Corl platform.
The CORL Token is the native token of Corl platform. It is a digital token which will be developed based on the Ethereum (ERC20) and Polymath (ST20) protocols to combine the attractive qualities of both. Polymath protocol is needed for CORL to comply with regulations as a security token. Approved investors can purchase CORL tokens with ETH from Corl smart contract on the platform and the purchased tokens are sent to the investors’ Ethereum public address. At the end of every quarter, investors receive 10% dividends in ETH in their Ethereum public address where the CORL tokens are stored. The company ploughs back the remaining 90% of quarterly net profits to scale the company and forge new revenue-sharing agreements with high-potential early-revenue companies. Corl intends to generate revenue through revenue repayments, origination fees, and equity warrants. These revenue streams will help consolidate the financial status and profitability of the company.
Competitive Advantage of CORL
(a) CORL token represents 100% equity ownership in a company therefore giving investors tangible ownership in a real asset. This is the first of its kind in the world for a company providing funds to high-potential emerging technology companies on a revenue-sharing agreement.
(b) Opportunity to support and facilitate the growth of emerging early-revenue companies via revenue-sharing financing.
(c) CORL intends to be world’s first approved securities token.
(d) Token holders are issued 10% of quarterly net profits paid in ETH.
Corl Team and Partners
The Corl team is constituted of seasoned professionals and experts with years of experience in finance, technology, regulatory compliance, lending, risk, and investment management. The team, led by Sam Kawtharani as the CEO, is focused on championing initiatives which will enable emerging technology companies thrive by providing the funds needed for growth in a transparent and regulated way.
Currently, Corl is in strategic partnerships with leading firms such as Polymath, MLG, Dentons, BlockSale and BountyOx.
For further Information, check out these links:
Official Website URL: https://corl.io
Whitepaper: https://corl.io/whitepaper