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Revenue Participation: The Concept

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Byadmin

In a Revenue Participation financing a business offers the investors a percentage of the business’s future gross revenues in exchange for a capital investment.

In its simplest form, the business offers to give the investors y% of future gross revenues until such time as Investor has been paid “x” times the amount of capital invested.

So, for example, in exchange for $100,000 of capital, the business could agree to pay the investors 20% of future gross revenues until the business has paid the investors 3X the $100,000 capital investment, or $300,000.
 
Source: https://www.natlawreview.com/article/introduction-to-revenue-participation-financing

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Investing in startups and early-stage businesses involves risks including illiquidity, lack of dividends, loss of investment and dilution. Equity crowdfunding should only be executed as part of a diversified portfolio in accordance with the limits set up by the State Securities Board. At truCrowd we exclusively serve resident investors who understand these risks and are capable of making their own investment decisions. Read the full Risk Warning. California Investor Only – Do not sell my information

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