Revenue Interest Financing Transactions
One thesis, two trajectories
Two representative structures showing how non-dilutive capital adapts to where a company is in its commercialization arc — from first launch to next-generation expansion.
Funding Platform Expansion from Existing Revenue
Company profile
Late-stage oncology biotech approaching FDA approval
Situation
Positive Phase III data and NDA submission create a near-term launch opportunity.
Capital need
$25M to fund commercial build-out, manufacturing scale-up, and working capital during launch ramp.
Severan Structure (Illustrative)
• $25M investment
• 6.5% royalty on product revenue
• 2.25× capped return• Royalty terminates once cap is reached or at term
• 6.5% royalty on product revenue
• 2.25× capped return• Royalty terminates once cap is reached or at term
Strategic Outcome
Launch financed without dilution, preserving ownership ahead of commercialization.
Financing First Commercial Launch
Company profile
Commercial-stage surgical technology company
Situation
First-generation product launched successfully with strong surgeon adoption and growing revenue (~$30M run rate). Next-generation instrument approaching regulatory submission.
Capital need
$25M to fund manufacturing expansion, clinical evidence generation, and regulatory submission.
Severan Structure (Illustrative)
• $25M investment
• 8% royalty on revenue from the first & second commercial product
• 2.25× capped return
• Royalty terminates once cap is reached or at term
• 8% royalty on revenue from the first & second commercial product
• 2.25× capped return
• Royalty terminates once cap is reached or at term
Strategic Outcome
Existing product revenue funds development of the next platform without equity dilution or governance transfer.
