Good Food Accelerator Revenue Model
In a traditional Business Accelerator model, programs take equity in the businesses in exchange for a cash investment and the value of the Accelerator experience. The Good Food Accelerator (GFA) does not take equity but instead requires businesses to pay annual fees based on revenue growth after program completion. This revenue sharing model will benefit the ongoing operations of the Accelerator, a non-profit entity, including supporting continuing education and resources for our Alumni and other Good Food businesses like yours.
Participation in the GFA may help each Fellow to improve their sales, raise money, build their brand, and more. Payments to GFA are based on a modest percentage of the increase in sales that a Fellow’s business realizes after their participation in the program.
Increases are measured against baseline revenue upon entering the program. For example:
Company XYZ enters the program with a baseline revenue of $500,000, as indicated on page one of their 2018 IRS tax returns.
Year one tax returns after Company XYZ has completed the program (2019) indicates $750,000 in revenue. Year one fees would be based on a revenue increase of $250,000 (Current Revenue-Baseline).
Year two tax returns (2020) indicates $900,000 in revenue. Year two fees would be based on a revenue increase of $400,000 (Current Revenue-Baseline)
…and so on.
|Revenue Increase Range||Fee as % of Revenue Increase|
|$0 – $500,000||0.30%|
|$500,001 – $1,000,000||0.20%|
|$1,000,001 – $2,500,000||0.10%|
|$2,500,001 – $5,000,000||0.10%|
To calculate sample fees: click HERE to utilize our interactive revenue share model.
The annual revenue sharing payment commitment is for a minimum of 10 years, after which you may terminate your commitment at any time with a payment of 4x revenue sharing in previous full year. In addition, upon sale of your business, businesses will be required to make a payment of 4x revenue sharing in previous full year.
Good Food Cluster Benefits
All graduates of the GFA will continue to receive benefits of the Good Food Cluster we are building together. This could include ongoing product development, customer development and sales support, master classes to continue building skills, networking events, continued access to the investor network, and peer learning and sharing.