5 ms·
If I read your agreement correctly, your terms are so that you invest $150k in what is or nearly is a bootstrapped business, on what essentially seems like a pr
by ddebernardy 8y ago
If I read your agreement correctly, your terms are so that you invest $150k in what is or nearly is a bootstrapped business, on what essentially seems like a profit share basis, and expect to get paid for your doing so until you've made $3M? It's not entirely clear to me what the benefit is compared to a bank loan or VC money if you can get the latter.
- tylertringas 8y ago$3m?! No. This post walks through each of the terms in detail: https://earnestcapital.com/shared-earnings-agreement-digging-into-the-numbers/ https://earnestcapital.com/shared-earnings-agreement-digging... We have a Return Cap which is negotiated on a per deal basis but we guide toward 3-5x the initial investment.
- ddebernardy 8y ago[Didn't read the doc properly]
- extesy 8y agoYou are confusing it with a valuation cap. Return cap in that very same document is 3X of the investment.