Exchange Start-up Investor

One of the difficult challenges in finding an Executive Director is in the task of finding someone who has the resources to sustain themselves for the first year or two while they develop their new exchange. Although the exchange normally draws substantial revenue after that first year or two, until the exchange has about 150 members, it is generally not enough revenue to fully support the reasonable salary of an Executive Director.  After that first year or two, a successful exchange will provide not only enough revenue to continue to support an Executive Director, but enough to provide a substantial return on investment for an individual willing to provide a portion of this initial support.

 

We seek Exchange Start-up Investors to essentially sponsor an Executive Director of a new exchange for a period of about 2 years (decreasing payments out as exchange has increasing revenue) and with a 20% APR, receive a return on this loan over the approximate following three years.  This represents typically a near double return on investment. An Exchange Start-up Investor should be in a position to provide about $50-60k spread out over that first two year period for the right Executive Director candidate. Candidates are chosen with established performance benchmarks established to insure proper development and growth of the exchange. At the 20% APR, even though TradeAuthority could be involved in the recruiting and selection of an Executive Director (if the investor didn't already have someone in mind or didn't want to be involved in the selection), the investor takes on the entire risk. However, TradeAuthority is willing to guarantee the "loan" with complete management control and a split of the return (10% APR each). See this "Exchange Start-Up Investment" spreadsheet for an example of this model.  You can plug in different salary amounts (depending upon the need of the director) to see the needed investment and ROI listed at the bottom of that spreadsheet.

 

For more information on Exchange Start-up Investor opportunities, call Chip Davis at 866-936-9590.