Royalty investing works exceptionally well for certain businesses.

And it doesn't work at all for others.

Being clear about this distinction is important.

If you're building deep tech, semiconductors, quantum computing, or advanced biotech,
where you need to invest €200m over 5 years before generating any revenue, royalties aren't
the right solution.

Because royalty investing is built on recurring revenues.

We underwrite based on existing revenue streams from signed contracts and paying
customers that depend on the product or service you provide.

If there's no substantial revenue yet, there's nothing to structure the investment around.

A world-class business, with an exceptional founding team and backed by a leading
investment firm that invested €200m into technology development is a great investment
opportunity.

But if it has just started to generate revenues, royalties is not the right instrument yet. That
requires equity capital. That's exactly what venture capital was designed for.

We focus on proven and defensible IP and technologies that form the basis for businesses
with €10-100m in recurring revenue.
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Companies that have demonstrated product-market fit. Companies that need growth capital to
scale without dilution or rigid amortization schedules.

That's where royalty investing is a game changer.

For pre-revenue businesses, for companies still in pure R&D mode, equity remains the
appropriate funding mechanism.

Understanding where royalties fit, and where they don't, is part of building a robust
investment thesis.

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