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Website also says: "In most cases, we’ll agree on a long-term residual stake for Earnest if you ever sell the company or raise more financing."
by berberous 8y ago
Website also says: "In most cases, we’ll agree on a long-term residual stake for Earnest if you ever sell the company or raise more financing."
- fragsworth 8y agoThey don't explain it, but it sounds like the whole deal is effectively seed financing where they eventually get a 9.5% stake, but also with a 3-5x loan interest payment once you make money (which they're framing as "Shared Earnings"). And they're trying to hide the 9.5% part.
- tylertringas 8y agoHiding? https://earnestcapital.com/shared-earnings-agreement-digging-into-the-numbers/ https://earnestcapital.com/shared-earnings-agreement-digging...