Same company.
Two ways to participate.

Same investment. Same revenue assumptions. Potential equity value versus cash payments.

Long-term equity

POTENTIAL EQUITY VALUE · NOT CASH

Uncapped upside. Funding dilutes ownership. Liquidity requires an exit or permitted sale.

Benefits

  • Uncapped potential upside.
  • Equity exposure after SAFE conversion.

Trade-offs

  • No scheduled cash payments or exit date.
  • Future funding dilutes ownership.
  • Paper value may never become cash.
Explore equity

Revenue participation

MODELED CASH PAID · INCLUDES PRINCIPAL

PROPOSED · 1.3× total payout cap. $250K pool. Optional unpaid-upside conversion requires agreed terms.

Benefits

  • Revenue-linked payments without waiting for an exit.
  • Principal paid first under the proposed terms.
  • Option to discuss converting unpaid upside into equity.

Trade-offs

  • Cash gain capped at 30% of invested capital.
  • Low revenue delays or prevents repayment.
  • Conversion replaces unpaid cash upside; terms must be agreed.
Explore revenue participation

What is the trade-off?
Long-term equityRevenue participation
Primary appealLarger potential upsideRevenue-linked cash flow
Exit required?Usually, or a permitted saleNo; depends on collected revenue
Capital recoveryNo modeled cash recoveryPrincipal first, if revenue supports payments
UpsideUncapped; dilution applies30% cash gain cap; conversion path not modeled
Shared assumptions & limits

Shared choices follow you between pages. Funding and valuation inputs are illustrations, not committed terms or verified financing plans. Edit them in Long-term equity. Defaults: no modeled revenue before Year 2. $2M annual revenue at Year 2. Middle ground: 200% annual growth below $3M, 100% to $10M, then 50%; High ground doubles these rates. Same revenue trajectory is integrated for quarterly payments and used for equity marks.

Equity: $30M pre-money SAFE cap / 20% discount, $1.95M other identical SAFEs, $5M first priced round, $10M next round at $10M annual revenue, 10% further dilution, 15× equity-value/revenue assumption. Revenue participation: full $250K pool, 5% eligible revenue share allocated pro rata, 100% eligibility/collection, quarterly payments capped at 1.3×. No taxes, fees or preference waterfall. Figures describe alternative individual allocations, not additive returns or a combined company cash-flow model. No probability or guaranteed payment timeline is implied.

Illustrations, not forecasts. Both options can lose capital. Cash and unrealized value are not equivalent.

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