Groundbreaking Healthcare Funding Model

 NRF TERM SHEET

For Medtech, Pharma, Life Sciences, & Biotech Companies

A Groundbreaking Healthcare Funding Model

Democratized Capital Funding (DCF)

NRF is revolutionizing the healthcare capital market with its groundbreaking funding model that provides financing to companies launching a Reg A+, Rule 506(c) or Reg CF offering.

NRF is revolutionizing the healthcare capital market with its groundbreaking funding model that provides financing to companies launching a Reg A+, Rule 506(c) or Reg CF offering. Under NRF’s Democratized Capital Funding (DCF) model, NRF will provide financing to medtech, pharma, biotech, and life sciences companies to cover a broad range of the front-end costs for online securities offerings including consulting, corporate finance, legal, investor acquisition, fintech platform and media spend. As the pioneer of this unique project financing model, NRF will increase its dealflow and market share as well as improve the quality of deals. All deals could use financing, but only the best-of-the-best deals will receive DCF model financing.

Our DCF model will enhance client cash flow by allowing clients to defer a portion of their capital raising costs at a time when the need for cash is most critical. This allows clients to focus more on raising capital by giving them the stress-free time and freedom they need to ensure regulatory compliance and develop their customer and investor bases for successful capital raises while also continuing down the path to FDA approval and commercialization. As more cash becomes available from the offerings, clients pay the costs on the back-end.


Our DCF model will also enhance vendor cash flow by giving vendors the choice to either receive payment up front or defer payment for a premium.



Investment Opportunity

18%
Interest

36
Month Term

NRF is seeking $5 million in capital commitments to purchase its 3-year and 5-year secured convertible promissory notes. The 3-year or 5-year notes will pay 15% or 18% interest per year, respectively.

NRF will use the proceeds to fund its DCF model and for general corporate purposes.

The notes will be secured by available-for-sale stock that NRF holds in the underlying clients that NRF funds in the DCF model. Moreover, the funding provided in the DCF model will be secured by a variety of collateral provided by the clients and the vendors that service them such as future capital raised, accounts receivable and investment property including additional available-for-sale stock of the clients.

NRF targets early and-growth-stage medtech, pharma, biotech, and life sciences companies undergoing product development and/or clinical trials with an innovative diagnostic or therapeutic and valuable patents, but limited access to capital. For these companies, the flexibility and cost-efficiency of Reg A+, Rule 506(c) or Reg CF coupled with our DCF model offer an ideal funding solution, providing access to a broader and more diverse pool of investors while keeping founders in control of their businesses and preserving cash flow at a critical time.

Medtech, pharma, biotech, and life sciences companies are prime candidates for democratized capital offerings such as Reg A+, Rule 506(c) or Reg CF due to their scalability and potential for mass customer adoption when a breakthrough product or treatment hits the market.

We will select companies for participation in our DCF model based on several criteria including, but not limited to, credit worthiness of the companies and their guarantors, current cap table, 5 to 7-year DCF strategy, degree of innovation, strength of management, company vision, perceived market potential, validity of patents and long-term growth prospects. Fundamentally, we look for companies with life-changing products that inspire passion among investors with a culture and management team dedicated to long-term value creation.

The Problem

President Barack Obama signed the JOBS Act into law on April 5, 2012, with bipartisan support. For the first time since the passage of the Securities Act of 1933, public retail investors can learn about as well as invest in early and growth-stage growth companies. This form of fundraising took flight in the real estate industry with companies like Fundrise and Realty Mogul and the marketplace lending industry with companies like Prosper and Upstart.

The healthcare industry, however, suffers from a lack of awareness about the JOBS Act and how to utilize the DCF sources it created through Reg A+, Rule 506(c) or Reg CF. Historically, and primarily to this day, early and-growth-stage companies in the healthcare industry focus only on VC funding, many of which to no avail.


Without funding, life-changing products die on the vine without a path to FDA approval and commercialization. The JOBS Act allows these companies to take control over their future capital needs by raising the same capital on their own from the public; however, early and-growth stage medtech, pharma, biotech, and life sciences companies usually lack media attention, Goldman-Sachs-type underwriters, analyst coverage, a strong investor base as well as a loyal customer base unless they have other products for sale. These companies need time and resources to gain exposure while at the same time continue on the path to FDA approval and commercialization.

The Solution

Our DCF model solves all of these problems. Our DCF model aligns all of the best vendors that early and-growth-stage companies need to access DCF sources while at the same time enhancing their and their vendors’ cash flows and giving these companies the time they need to develop their investor and customer bases. Every early and-growth-stage company needs to adopt a 5 to 7-year DCF strategy, allocate resources to it and take control over their future capital needs instead of competing with other companies for VC, angel or other traditional investment.

If you would like to learn more about our Democratized Capital Funding (DCF) model, let’s schedule a call to discuss.