Kevin O'Leary

So that matters for entrepreneurs.

But

The concept is, you know, you give somebody a million dollars on chart.

You're not going to make a return until you get the million dollars back.

And then the first dollar in is where you return.

So a million and one dollars, you've made one dollar return.

So the concept is return of capital, not return on capital is what you're looking for in venture investing.

So a royalty return.

mitigate some of that risk.

It says from every dollar of revenue before it goes through the meat grinder of the income statement, you're going to get your 7% or whatever it is.

And in the beginning, 17 years ago, all the other sharks went, oh, I would never do that.

Yada, yada, yada, woof, woof, woof, woof, yada, yada, yada, yada.

Now they all do it.

Why?

Because that's the right way to invest with this high risk.

You can take a taste of equity.

You get a royalty.

The royalty can be perpetual or not.

It can be based on some kind of a determined return, like 3X on your money, then the royalty goes away.

But one way or another, I'm getting a royalty.