Abstract
In this next journey, we’ll join Emily Stone and Alex Whitmore as they search for the right type of early-stage capital to support their sustainable cacao sourcing venture in Belize. Just like Antonio, they were looking for capital to be able to expand their early-stage company and stay true to its social mission. Their journey features the use of a demand dividend, which is a convertible revenue-based finance (convertible RBF) agreement, and a lot of lessons about the complexities of cash flow-based convertible RBF investments.
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Notes
- 1.
Sniffin, T. “How to Cacao in Toledo.” 29 April 2016. Available at: https://mybeautifulbelize.com/how-to-cacao-in-toledo/.
- 2.
Case adapted from: Pothering, J. “Sweet Deal: How One Company Found a New Way to Support Cacao Farmers.” 9 December 2014. Available at: https://www.entrepreneur.com/article/240624.
- 3.
We’ll discuss the tax implications a bit more below.
- 4.
Usually this number is between 20 and 30%. MMC was a holding company structure, so Jim set the repayment to half of the cash flowing up to the holding company after operating costs.
- 5.
The story of this investment is chapter 8 of Morgan Simon’s book Real Impact.
- 6.
A force majeure clause means unforeseeable circumstances. These clauses were important for many businesses globally during the COVID-19 pandemic to help them delay payments or cancel contracts.
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Patton Power, A. (2021). Maya Mountain Cacao: Our Demand Dividend Journey. In: Adventure Finance. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-72428-3_10
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DOI: https://doi.org/10.1007/978-3-030-72428-3_10
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