Briggs AnalyticsFree tool · Operating owners
Three ways to raise cash, side by side
Six months ago you had two ways to raise money. You could sell equity or take a loan. Now there is a third. Put in your numbers and see all three next to each other.
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How this works
Four steps, about as many minutes.
- Tell us how much cash you need.
- Add your valuation, exit guess and loan rate.
- See what each option really costs you.
- Save the comparison as a PDF for your board.
What each option actually costs
Equity looks free on the day you take it, because nothing is paid back. The cost shows up later, when the company sells and a slice of the check goes to someone else. A loan costs the interest, plus the covenants and the monthly payment that come with it. Licensing a copy of your company's operating records is the new option, and it works differently from both. You keep the company, you keep the records, and nothing is paid back.
This calculator puts the three side by side with your own numbers. Every assumption is shown and you can change any of them.
The two catches
Licensing is not right for every company. If a buyer wants exclusivity, you can only license those records once, so price that in. And you have to actually own the records, because customer contracts kill a lot of these deals. The rights checker covers that in a minute.
Where the licensing number comes from
The licensing column is a Briggs Analytics estimate for a company of your size and age, using the same math as our estimator. It is not an offer. A buyer sets the final price after its own review, and some companies get no offer.
Questions about this tool.
Is the licensing number an offer?
No. It is a Briggs Analytics estimate based on your company size and years in business. A buyer sets the final price after its own review, and some companies get no offer.
Can I do licensing and still raise a round?
Usually, yes. Licensing a copy of your records does not sell any of the company. Tell your investors early, since some term sheets ask about deals like this.
Why does the equity cost look so high?
Because it is the value of the slice you give up, measured at the exit you expect. If the company grows a lot, that slice grows with it.
What loan math does it use?
A standard monthly payment loan over the term you pick, with total interest shown. Real loans add fees and covenants on top.
See what your company's records could be worth.
Costs you nothing · five quick questions · about a minute · no files
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