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Interview with Derek Manuge CEO of Corl
Can you introduce yourself and your role in Corl?
I’m Derek, a self-proclaimed mathematician and blockchain enthusiast whose mission in life is to eliminate inefficiencies in financial services. At Corl I am responsible for designing, developing, and testing models that are used to measure risk and value investments. A key focus of my role is to leverage data to formulate objective investment decisions and monitor those investments through time.
What is the experience of the management team in investing in cash flow businesses?
Extensive. Sam Kawtharani, our Chief Executive Officer, was a Head of Product and an early employee at one of the first peer-to-peer marketplace lenders, IOU Financial (TSX:IOU). He was responsible for the development of their small business lending product that resulted in >$500 million in loan originations and ultimately led the company to a public offering in 2011. Myself, Derek Manuge, am the Chief Investment Officer at Corl, and has 5+ years of experience across 40+ financial institutions on designing, developing, validating, and auditing investment risk and valuation models used for identifying, assessing, managing, and monitoring small business, commercial, and corporate deals. Bill Tharp, our Chief Revenue Officer, has 35+ years of experience in investment banking, corporate finance, asset management, and venture capital; closing hundreds of deals and managing funds cumulatively valued at >$1 billion. He co-founded and took public one of the largest royalty financing companies in Canada, Grenville Strategic Royalty Corp. (TSXV:GRC). Thus, the management team has deep experience in product design, investment analysis, and deal execution.
In what geographical markets and sectors will Corl invest in?
Corl is focused on the technology sector for the first phase of the company’s life. However, the Corl platform is open to all countries for funding. Corl believes that access to fair capital is a global problem, and one that requires a global solution. Promising high-growth technology companies should have access to equitable financing to catalyze their business, and with the $100+ funding gap that exists worldwide, we are positioning ourselves as a leader in this space.
Will the investment be done to listed/public companies or startups?
Startups. Corl is currently focused on early-stage companies that are post-revenue, and will invest as much as $1 million per company, depending on risk and valuation metrics.
What is the difference between a loan and a CaaS?
Loans typically have fixed interest rates an payment terms, which are restrictive and potentially crippling for a small company. CaaS is flexible; payments are proportional to a company’s revenue, thus minimizing the strain on cashflow that is necessary to operate and grow a company. In addition, loans for small companies typically require collateral, and since small companies generally don’t have excess collateral to post, founders are required to sign personal guarantees -which is not required for CaaS-based financing. CaaS was designed specifically for revenue-based low-asset companies, which represents the vast majority of technology startups.
For the startups who use CaaS how long are the “royalty payments” due?
There is no fixed payment period. A company pays a percentage of their revenue on a monthly basis (typically 2-10%) until a repayment cap of 1.5-2.5x is paid off. Thus, if a company grows quickly, their royalty agreement matures quicker. In general, royalty agreements are originated assuming a maturity of 2-5 years based on revenue projections of the company.
The website states that the returns will be around 15% to 30% interest per year, on what basis are these figures based?
These figures are based on a simulated portfolio of companies that are based on Corl’s existing eligibility requirements, as well as very conservative growth, default, and loss rates for the portfolio. It also does not take into account any revenue associated with warrants exercised by Corl in its portfolio companies.
How will the company revenue be divided between, returns to investors, refunding the capital fund and company expenses?
Investors (aka token holders) will receive dividends based on the performance of Corl, the majority of the returns will be reinvested into the company to fuel growth and issue more revenue-sharing agreements to suitable companies. Given the lean and algorithmic nature of our businesses, company expenses are projected to be minimal in comparison to revenue.
What are the economics of the token? (How many tokens will be issued, which platform, etc …)
100,000,000 tokens built on the ST-20 (Polymath) and ERC-20 (Ethereum) protocol.
What are the economics of the ICO? (Hard cap,Soft Cap, etc)
No soft cap. $5 million USD token presale, until the end of February, $39 million USD token sale, during the month of March. Hard cap is $44 million USD.
Will the dividends be paid back in crypto or in FIAT?
Crypto! The CRL smart contract helps automate the dividend distribution process and allocates ETH dividends to token holders based on their token amounts
For more information please visit: https://corl.io/
We thank Derek Manuge for the interview.