Investment Phases

Our investment strategy, which is not intended to replace traditional bank financing, is executed in a phased, milestone-driven manner. To ultimately invest the most money in the best candidates, BFTP/CNP makes follow-on investments in the client companies that demonstrate the most progress related to their stated plan.

To achieve this, investment occurs in four discrete steps:

Phase One
Company proposals address the technical feasibility and product development risks associated with starting the company. A typical Phase One investment would be for prototype development or for fees associated with protecting the intellectual property and would not exceed $100,000.

Phase Two
Proposals focus on market feasibility and acceptance which includes the introduction of beta sites and proof-of-concept installations. A typical Phase Two investment would be in the $150,000 range.

Phase Three
Investments are made when a business achieves revenues of $50,000 per month. The loan, for approximately $200,000, is intended to ramp-up sales efforts and encourage overall business growth.

Phase Four
Funding up to $250,000, is made to existing manufacturing-based businesses that need to develop a product or process for entry into a new market. Because the risks associated with an established business are less, the payback is structured differently from that of an emerging business and the loan will be repaid regardless of project success.