RevRoad is a venture services firm founded in 2017 by a group of 6 entrepreneurs who were united by a common passion for helping businesses grow. At its core, RevRoad believes that helping entrepreneurs solve problems by bringing new products and ideas to the marketplace is a great way to make the world a better place.
RevRoad branding has entrepreneurial significance. RevRoad is short for roads to revenue or rev your company on the road to success. Whatever the content, we help rev entrepreneurs to the next level.
How is RevRoad funded?
RevRoad was initially self-funded by the founders. Similar to a venture fund, RevRoad also raised funding from private accredited investors, as well as from institutional investment groups. Most of our operating expenses go to the highly skilled RevRoad employees who provide professional services to portfolio companies. Ongoing funding will come from RevRoad’s share of the proceeds of portfolio company harvest events.
What is a Portfolio Company?
At RevRoad, portfolio companies are the client companies we bring on board. These entrepreneurs bring their great ideas — their secret sauce — and we help them grow strong, grow well, and grow quickly. We negotiate an equity exchange for the value we offer through our 12 service departments. Our goal is to achieve the financial results our portfolio companies desire, whether that’s sustainable growth, ongoing distributions, a sale of their company, an IPO, or some other harvest event.
Is RevRoad a business accelerator? What does that mean?
No. RevRoad is often mistaken for a business accelerator but in fact operates quite differently. RevRoad is a venture services firm. We are all about helping entrepreneurs and their companies succeed. Unlike other business incubators and accelerators, we help companies on a deeper level, offering tangible services regardless of their stage of development. We work with businesses long term rather than offering short bootcamp-style, mentoring, or space for rent programs.
Is RevRoad a venture capital firm? If not, how do portfolio companies get the funding they need?
No. RevRoad is not a venture capital firm. Phase I of the long-term RevRoad strategy plan offers all the services and support companies need in exchange for an equity stake. If your company needs funding, our expert team can help you find investors while helping you retain control of your company. Portfolio companies get access to our exclusive network of investors and mentors.
Phase II of the RevRoad business plan is to create a separate entity in the form of a venture capital fund. That fund can invest in both portfolio and non portfolio companies. The RevRoad Venture Fund is expected to be operational by the 4th quarter of 2020.
How many companies has RevRoad helped so far?
As of Q2 2020, there are 33 companies in the RevRoad portfolio. RevRoad considers and evaluates about 40 new companies each quarter and invests resources in 3–4, onboarding those into the portfolio. Over 10 years we expect to have worked with some 150 portfolio companies.
Why Provo, Utah?
Utah is a great place to live and raise a family, and we chose to call Provo RevRoad’s home for many reasons. Utah was recently recognized as the best state for business by U.S. News and Forbes in 2020. Dubbed “Silicon Slopes,” this area has the advantages of a strong entrepreneurial culture, a highly-educated workforce, and a favorable regulatory climate. The Utah market has produced 5 unicorns in the last 3 years. As of May 2020 (post COVID-19 era) Utah ranks #2 in lowest unemployment rates in the nation. While based in Utah, RevRoad has portfolio companies headquartered in other states and nations.
What makes RevRoad different?
We are here to help entrepreneurs succeed, and we’re in it for the long haul. We believe that it takes sustained effort and persistence to build strong businesses, and we work side-by-side with our portfolio companies to help them win. Our unique 24-month RevRoad Venture Services™ system offers entrepreneurs a suite of expert services that makes traction and faster growth possible.
What kind of companies do you accept as portfolio companies?
RevRoad accepts portfolio companies from all industries and all stages of development (idea, pre-revenue, or post-revenue). We lean toward innovation-driven companies managed by great leadership with the potential to grow quickly, scale effectively, and disrupt the marketplace in their sector. We are more likely to partner with a company that already has some form of validation and traction.
What are the chances of getting accepted?
RevRoad receives many more applications than we can accept each quarter. RevRoad making a services investment offer is determined by the depth of the problem you want to address, the quality of your idea, the energy and commitment of your leadership team, the marketability of your solution, financial factors including recurring revenue and market size, and the bandwidth of RevRoad’s expert team. If you aren’t accepted on your first try, we strongly encourage you to keep trying.
Can I apply if I don’t have any co-founders?
Yes. You can apply if you’re the only founder (several of our current portfolio companies have driven solo on their roads to revenue). However, we have found that a diverse team of founders do best. If you need help finding a co-founder, we can help connect you with other qualified, energetic entrepreneurs.
What do I need to do to present my idea to RevRoad?
It’s easy. All you do is fill out the online application, submit a video, and get your pitch deck ready to present to the RevRoad leadership team. If you meet the qualifications, someone will reach out to you to coordinate a meeting to present to RevRoad.
What would disqualify my company from becoming a portfolio company?
No, it’s not a requirement. But we will be impressed if you’ve thought that far ahead and have data to back up your plan.
What would disqualify my company from becoming a portfolio company?
When analyzing portfolio companies, we look for the problem your company solves, a great idea coupled with a large SOM (serviceable obtainable market), recurring revenue opportunities, scalability, and a passionate and capable leadership team with a desire to win! If these requirements describe you or your business, you’re probably a good fit for RevRoad.
Is there a limit to how many companies I can bring to RevRoad?
No, but running a company takes a lot of time and focus (according to one of our portfolio companies, it’s a 120-hour-per-week job). We recommend that you focus on nailing and scaling one company at a time. However, we encourage additional business applications after you have sufficient bandwidth.
ABOUT WORKING WITH REVROAD
How many RevRoad services can I choose for my company?
RevRoad invests resources in the form of services your company needs to grow. Each service plan is customized to the needs of the individual company. There are 12 different services available. As part of the sign-on process, we will agree on a specific service package.
How does RevRoad determine how much equity is exchanged?
It depends on the scalability of your company, on how far along you are, on how much traction you’ve achieved, and on many more things. We work with potential portfolio companies during the application process to determine their needs and growth trajectory. If we decide to invest our services in your company, we will discuss our equity exchange offer in a private meeting with your leadership team.
Do you fund companies that are competitive with each other?
No. We typically look for companies in a variety of industries each quarter.
What sort of control does a portfolio company give up?
One of the unique characteristics that makes RevRoad different is our commitment to helping you retain control of your company. We will advise you and help you with whatever you need, including systems, financing, and capitalization. We encourage you to steer your company on the road to revenue, from the starting line to harvest event and beyond.
What is the timeline for the 24-month program?
In your first quarter, we’ll help you build a foundation for success and provide the services you need to kick off your growth. Throughout the first year, our expert teams will continue to provide the services you need based on the service departments you selected during the sign-on process. Depending on the service department, some services will be front-loaded to get you to market quickly. Others will be ongoing during the entire 24-month program. In the second year, we will help you and your employees develop the skills necessary to continue the services necessary to build your company. You’ll have weekly chats with a mentor (if you choose this service department) throughout the 24 months, and you’re welcome to snag some breakfast cereal from the break room anytime.
How do you deal with my intellectual property?
We are committed to your privacy and to keeping your intellectual property and cap table information secure. Need-to-know information will be shared with RevRoad staff, including your mentors. However, we will not share your information with other portfolio companies or RevRoad partners without written permission.
Do I need to work with RevRoad for the full 24 months?
No. At RevRoad, our goals are your goals. We will work with you for up to 24 months, but if you have a harvest event or reach your goals more quickly, we’ll be there to help. You’re welcome to hang with us as long as you need up to 24 months. As your partner, we will also keep in touch with you after your official time as an in-house RevRoad portfolio company has ended.
How does office space work with RevRoad?
Each company we invest in has the opportunity to office with us for the 24-month program. You’ll get a defined space for your company with two tables that will accommodate up to 4 individuals. If you have your own office and don’t need the space or aren’t close to Provo, no problem. If you need offices or need to use our HQ for meetings or events, that’s great too. We’ll discuss all your needs, including the need for office space, as part of the sign-on process.
INVESTING WITH REVROAD
Are investment returns guaranteed?
No. You should not invest in RevRoad unless you are an accredited investor, understand the risks involved (as outlined in our Risk Disclosures document), and are prepared to sustain a total loss of the money you have invested. An investment in RevRoad is not insured by any governmental or private agency and is subject to investment risks, including the possible loss of principal. Past performance is not indicative of future results. The investments and services offered by RevRoad may not be suitable for all investors. If you have any doubts as to the merits of an investment, you should seek advice from counsel and/or an independent financial advisor.
What is the minimum investment amount?
$100K for individuals. $1M for institutions. All investors need to be accredited, as currently defined by the Securities and Exchange Commission.
Are RevRoad securities registered with the Securities Exchange Commission?
The Securities represented have not been registered under the Securities Act of 1933, as amended, and have been acquired for investment and not with a view to, or in connection with, the sale or distribution thereof. No such transfer may be effected without an effective registration statement related thereto or an opinion of counsel in a form satisfactory to the company that such registration is not required.
How do investors get their money back?
There are three ways to get a return on your investment in RevRoad:
Distributions from sales of portfolio companies
Portfolio company IPO
Dividends or other distributions back to investors from portfolio companies
The following outlines the order of distributions from RevRoad portfolio companies:
The first $3M or 10% of annual distributions, whichever is greater, is reinvested back into the operations of RevRoad.
After that reinvestment bucket is filled each year, remaining distributions go to return 100% of invested capital, plus a 5% annual coupon to RevRoad cash investors.
Any remaining distributions are then returned pro-rata to all equity holders, with no catchup provision to founder/employee equity
Other questions about RevRoad?
If you have additional questions about how RevRoad can add value to your scaling company in an impactful way we’d be happy to answer your questions at firstname.lastname@example.org.