ARCTARIS ROYALTY VENTURE
Arctaris launched Arctaris Royalty Ventures, LP (the “Venture Fund”) in 2014 to provide GrowthDebt capital to businesses seeking an alternative to traditional venture capital. The Venture Fund lends capital to businesses in late-venture or pre-exit stages or in the midst of a compelling turnaround situation.
The Venture Fund utilizes Arctaris’ innovative royalty-based credit structure with payments linked to future revenue growth instead of warrants or other forms of equity dilution. Further, this form of credit provides significant cash management flexibility to borrowers, as payments are almost entirely based on the borrower’s financial performance while the business grows and increases profitability. The fund lends to companies that may not have achieved profitability but have established high enterprise/equity value and/or are supported by strong founder personal guarantees.
The Venture Fund is headquartered in Boston.