RECURRENT CAPITAL, LLC

Established in 2008, Recurrent Capital, LLC provides bridge financing and liquidity to small- and micro-cap, asset-rich operating companies in the industrial, technology, business services, energy services and healthcare sectors.

Recurrent Capital, LLC typically invests $250K to $1M per opportunity, although it is willing to consider both smaller and larger investments on a case-by-case basis.

Our typical investee has a minimum of $3mm in recurring revenues growing at at least 15% year-over-year, with positive EBITDA and equity, or near-term visibility to positive EBITDA and equity. In rare cases, Recurrent invests in pre-revenue companies with significant sales pipelines.

BRIDGE FINANCING vs. PURE EQUITY

So why finance your corporation through a bridge financing vs. a pure equity raise?

•  For growing companies, bridge financing (at a 3% to 5% warrant or equity kicker) has a significantly lower cost of equity capital than a pure equity raise (typically 15% to 20% of equity for equivalent financing)
  
• Bridge financiers typically do not seek Board of Directors seats in the borrower, allowing management to execute on its growth plans without investor interference, and reducing additional dilution through Board of Directors stock option plans
• Bridge financiers typically do not seek rights of participation in future equity rounds, reducing future dilution and investor influence