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10-12 per year. There's no limit. If the business stalls at $3k MRR (ie no Founder Earnings) it can go on running forever or shut it down. We would get a % if
by tylertringas 8y ago
10-12 per year.
There's no limit. If the business stalls at $3k MRR (ie no Founder Earnings) it can go on running forever or shut it down. We would get a % if it was ever sold.
- nodesocket 8y agoThanks for the reply. So if after accepting investment, if the company does not work out and has to shut down, is there a personal liability owned back to Earnest Capital by the founders? Second, can you explain the valuation cap in terms of acquisition. Let's say I take $100k in investment, and 5 years later I sell the company for $10M. What is the max amount Earnest Capital will receive?
- tylertringas 8y agoNo personal liability. We assume some of these investments will fail for us. % of the sale would be roughly $100k / Valuation Cap (which is negotiable at time of investment).