OAREX Capital Markets
has closed on their first transaction by providing capital to Toronto-based Nintendo Enthusiast
, a video game review website that has an informal relationship with Nintendo.
A Youngstown Business Incubator
portfolio company, OAREX provides capital to digital entrepreneurs with future value. It’s billed as a risk-free alternative to incurring debt or selling equity.
“In exchange for the cash we gave him, he will pay us the money he receives from advertisers for the next three months,” OAREX Founder Hanna Kassis explains. “After that, he remains 100 percent owner of his company and debt free.”
Kassis says the deal came after pouring over market research that included reaching out to various blogs and websites.
“I emailed about 450 blogs and was getting mixed feedback,” Kassis recalls before Nintendo Enthusiast asked for a quote. “We Skyped three times, and I got to understand his needs, got access to his website data and quoted him. We negotiated a bit and struck a deal.”
In addition to providing capital, OAREX will be offering search engine optimization (SEO) consultation to the Canadian company. Kassis anticipates their SEO work will bring in even more advertising revenue to Nintendo Enthusiast.
Though OAREX is excited for their first client, Kassis is busy developing additional relationships.
“We are in talks with a few other potential clients,” he says, noting an increased demand for futures capital. “I’ve been emailing 50 to 80 websites a day.”
Source: Hanna Kassis
Writer: Joe Baur