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It sounds to me like a critically important part of their model that they don't want you to understand or think about. There's nothing about it on their site fr
by fragsworth 8y ago
It sounds to me like a critically important part of their model that they don't want you to understand or think about. There's nothing about it on their site from what I saw.
- tylertringas 8y agoThe residual stake is a factor of the investment amount, the Valuation Cap (negotiated at time of investment) and the terms of a sale. Note by "stake" we just mean an option to participate in a sale. You can run the business profitably forever without paying us a penny. There is a screencast here going over every term and a spreadsheet anybody can use to run the numbers. Not hiding anything :) https://earnestcapital.com/shared-earnings-agreement-digging-into-the-numbers/ https://earnestcapital.com/shared-earnings-agreement-digging...
- mbesto 8y ago> we just mean an option to participate in a sale By what instrument though? Are you offering a stock option at a strike price? Is it equity at a priced round? Or is a convertible note? Other? You can just say "if you sell we have the option to take a %"...