Apply to the Reset Tourism Fund - Untours Foundation

Do you run a world-changing business that represents the future of tourism?

We may be able to help you. We invest catalytic capital into world-changing businesses that represent the future of tourism.

We believe the future of tourism gives travelers life-enhancing experiences, lets host communities thrive, and helps see the natural and cultural resources that make travel special will be respected, restored, and regenerated.

We believe tourism is a powerful and underutilized tool for fighting poverty, empowering underestimated entrepreneurs, and combating climate change.

As you may know all too well, the COVID-19 pandemic has decimated the tourism industry. We want to help you restart, reset, and build for a profitable future.

Criteria for Investment

Your business must directly connect with the tourism industry. Examples include:

Hotel, B&B, or other lodging
Tour guide, host, or facilitator
Restaurant or catering in which tourists are a primary customer
Museum, activity, other event space that caters to tourists
Tourist-based transportation
B2B – Serves businesses within the tourism industry

Your business should be located or operate in the Philadelphia, PA area or in Caribbean regions. (We will broaden our areas in the next phase.)

Your business should represent the future of tourism by ensuring that it is community-enhancing and environmentally-sustainable. We favor businesses that adhere to the Future of Tourism Guiding Principles and/or B Corporation principles.

Investment Details

While equity or traditional debt investments are a possibility, investments will primarily take the form of Revenue Based Financing (RBF). Investments will range from $5,000-$100,000 and will initially focus on two geographic regions: Philadelphia and the Caribbean.

What the investee receives

Flexible, affordable, and unsecured capital to grow their business.
Technical assistance and mentorship from Untours Foundation, fund partners, and advisors to both grow the business and increase its positive impact.
Access to an expansive network of other funders, potential collaborators/partners, and advisors through the Untours Foundation, fund partners, and UF advisors.

What our fund receives

A sustainable return on our investment that allows us to continue to grow our impact.
An ability to recycle catalytic capital into new investments.
Real progress in our mission to support world-changing businesses led by dynamic and diverse entrepreneurs.

Have questions about potential investment? Contact us at resettourismfund@untours.com.

How Revenue Based Financing Works

The Fund will invest a sum of money in a business in the tourism industry – the Original Investment.

The business will agree to repay the Fund a fixed total amount calculated as a multiple of the original investment (for example: the investee will repay 1.5x Original Investment) – the Total Repayment Amount.

The business will agree to pay a fixed percentage of ongoing gross revenues (between 2-10%) monthly to the Fund, until the agreed upon Total Repayment Amount has been repaid. As opposed to traditional debt, in which interest is charged on every dollar until the principal is paid back in full.

Initial repayment grace periods, repayment percentages, and other terms will be agreed up front at the time of investment.

The Total Repayment Amount will vary by business and depend on multiple factors, including business model, assessed risk, projected revenues, and expected repayment time.

Example Investment

Reset Tourism Fund invests $10,000 into a tourism business.

The business agrees to repay 1.3x the initial investment amount, or $13,000.

Based on projections the business will repay the investment within an initial two-year grace period at a rate of 5% of all revenues. Payments continue until the $13,000 is fully repaid.

In the high season, revenues will be higher and therefore repayment amounts will be higher. In the low season the opposite occurs, providing much-needed flexibility for tourism businesses.

No matter how long it takes to repay, the total amount never changes. However, the business is always required to pay the agreed-upon percentage of revenues until the full amount is paid, without exception.

APPLY HERE