# Ten West Future Mode - Test Plan Prove the valuation model on Future Mode's own data. Then raise credit against the results. Future Mode is the distributor, so it already controls the cash. The missing piece is the valuation model.^[Royalty Financing Primer, Utopia, Nov 2026] ## Steps 1. **Fix the product terms.** Pick the lever mix. See [[Royalty Advance Deal Mechanics]]. - Move toward a standard form. Bespoke per-deal terms are hard for a lender to pool. - Check the yield gap in [[beatBread vs Future Mode Deal Terms]]. 2. **Audit the data.** - The data: 10 years of raw label-side statements across tracks, genres, release ages and territories. - Check that it is track-level and monthly, linked to release date and DSP. 3. **Build and back-test the valuation model.** - Today the forecast uses the last 12 months plus an educated guess. The outlook rarely goes past 12–24 months. - Target: forecast each track from its history and similar tracks, price the risk, and back-test against actual payouts. 4. **Ring-fence the cash.** - Set up a controlled collection account or SPV for funded artists' receipts. - Confirm that recoupment survives if an artist leaves Future Mode mid-term. 5. **Run a pilot of 20–50 deals (£1–2m)** priced with the new model. - Fund it from the balance sheet, a family office or a forward-flow partner. - Track collections against forecast for 6–12 months. 6. **Raise a warehouse facility.** - Targets: specialty-credit funds like Northleaf, Viola Credit, GMO. - Bring the back-test and the pilot data. 7. **Securitize** once the seasoned pool is large. Duetti's first ABS was $80m. > [!tip] Partner route > RoyFi powers TuneCore's in-app advances. Future Mode could embed a third-party funder the same way. This tests demand before Future Mode takes balance-sheet risk. Future Mode keeps the distribution fee. ## Open questions - What does the existing book of ~30 artists show: recoup speed against expectation, and write-offs? - Does Tenwest want to own the lending book, or only originate for a partner? - UK counsel: is a recoupable advance under a distribution licence regulated consumer credit? ---- tags: #boat links: [[Music Royalty Financing MOC]] [[Critical Assumptions and Non-Negotiables]] [[Competitor Teardown - beatBread Duetti RoyFi]]