Fun Center Equity Fund

Mentors with Funding - About the Fund

The Fun Center Equity Fund (the Team) is a group of like-minded amusement entrepreneurs, select manufacturers, and successful owners and operators that are interested in new business opportunities.  The group brings a wide variety of talent, experience, management and funding to your project in exchange for an equity position or operating percentage in your business. The program is very organic in nature and deals vary by opportunity.

The fund's mission is to create a working capital resource for new amusement developers otherwise unable to find the required funding through 'traditional' means. These are not wall street investors seeking a quick return, but industry professionals looking for opportunity they feel they can grow and earn a profit from, within a symbiotic relationship that in some cases may last well beyond the term of the agreement. The team comes together with capital, equity and experience to ensure the life of your business and the health of the amusement industry at large - kind of like 'mentors with funding'.

The Fund requires that you have, or are in the process of completing a business plan and can upload your completed Executive Summary to our application database.

How Does the Fund Work?

The team looks for amusement projects up to a maximum of two million dollars total startup requirement. Investors can bring as much as 100% to any given project, however the average is usually up to 60% of total startup costs. Equity and management vary by project, but the higher the investment amount, the larger the ownership stake you should expect to provide. If investors express interest in your project a request for more information is issued (Interest Stage).

Projects can receive funding in a variety of means; a cash investment, an asset investment (equipment and supplies) an operating investment (cash and management experience). At that point it is up to the developer to decide what's the best funding course for your own business goals.

How Do I Get Involved?

There are three stages to the Equity Fund.

1. Introduction Stage:  You need a completed 2-3 page executive summary of your business plan, including financial summary; investment needs, owners equity (if any) and management team bio.
That summary is uploaded for initial review by member investors.

2. Interest Stage:  Team members will make contact expressing further interest in your plan. At that time, non-disclosure agreements may be requested and signed by both parties and you will be asked to forward your completed plan with full financial statements.

3. Investment Stage:  This is a mulit-part stage, but the short of it is this; there is interest in helping you fund your project by either one or more team members.

FAQ's

1. Who is the team?

Due to privacy concerns for our team members, we are unable to give specific investor details. The team does fluctuate - and over the term of your enrollment multiple investors will review your executive summary.  The team is comprised of serious investors familiar with the industry, successful amusement business owners and other angel and entertainment investors.

2. How much does it cost?

There is an initial fee of $159 to get your executive summary listed for 6 months (Introduction Stage). You are given a login id and can update your summary as often as you like at no additional charge. If your project goes through to investment stage, investments vary and may be subject to legal fees (as per you and your lawyer) but there are no further upfront costs for this program.

Each deal is unique, however this is an "Equity" program - meaning that in return for funding investors will require a stake in your business to ensure their return. Depending on the amount funded - sometimes up to as much as 70% of the business. But remember, these are both investors and experienced amusement professionals who can bring more to the project than just dollars and are looking to get out within 2-3 years.

We offer a 6 month enrollment included in our Startup Academy Developer program.

3. Do all team members get involved in my project?

Some projects will be better suited for some investors. Some investors are interested in smaller (under $500k) projects, while others look for larger opportunities, each depending on many factors but usually within their own experience and invested interest. You may end up with one or with multiple investor interest.

4. How long does it take to pay back my investors?

Depending on the scope of your project, the local market and the amount invested, payback time varies. Typically, investors are looking for a return and exit strategy within 2-3 years. Each deal can be structured in different ways, for example, over the term of the investment the investors equity stand can diminish as profits are gained each year, or an investor might require that the equity is fully divested until investment criteria has been met in it's entirety.

5. Will investors be at my business everyday looking over my shoulder?

Investors are in this fund to make a profit. The added benefit of this fund is it's team members can work jointly together to ensure you and your management style meet their investment criteria. We too have our own businesses to run and do not have the time to be at your business on a day to day basis.

However, some investors operate different than others and feel a need at least initially to be a part of your operations to help ensure your business footing is solid. These details are best worked out on a one to one with your investment team.

6. Will investors change my business plan or project idea?

Investors reserve the right to prepare due diligence on your project goals and business plan. They may in some cases make recommendations regarding your plan and it is up to you to receive or ignore those recommendations. 

7. How can I be certain my idea won't be stolen, sold or copied?

This is a valid and universal concern for new business owners and startups across all industries. These are professional people that have fully loaded businesses of their own to operate, and are looking for a business opportunity that won't take all of their time but has the potential to create something of community value and additional wealth. Once your executive summary is uploaded you may request a non-disclosure agreement be signed by potential investors prior to distribution of your complete plan.