This investment has a 6-month startup period during which no cash payments will be made. The startup period commences the first full month after the offering’s close.
After the end of the startup period or once the Issuer commences operations (whichever comes later), the Issuer will share a percentage of each month’s gross revenue with the investors as a group until they are paid in full. The total amount raised by the offering will determine the Investment Multiple and the monthly Revenue Sharing Percentage.
Total Raise Amount: $250,000 - $400,000
- Investment Multiple: 1.70x
- Monthly Revenue Sharing Percentage (first year): 4.0%
- Monthly Revenue Sharing Percentage (years 2-6): 4.0%
Total Raise Amount: $400,100 - $600,000
- Investment Multiple: 1.70x
- Monthly Revenue Sharing Percentage (first year): 4.0%
- Monthly Revenue Sharing Percentage (years 2-6): 7.0%
Total Raise Amount: $600,100 - $800,000
- Investment Multiple: 1.80x
- Monthly Revenue Sharing Percentage (first year): 4.0%
- Monthly Revenue Sharing Percentage (years 2-6): 10.25%
Total Raise Amount: $800,100 - $1,000,000
- Investment Multiple: 1.90x
- Monthly Revenue Sharing Percentage (first year): 4.0%
- Monthly Revenue Sharing Percentage (years 2-6): 13.5%
Each investor will receive its proportionate share of the monthly payments made to the investors as a group.
Scenario 1:
Total Raise Amount: $500,000
You Invest: $5,000
Based on the Total Raise Amount, the Issuer will share 4.0% of its revenues for the first 12 months of operations and then 7.0% of revenues thereafter, until the 1.70x Investment Multiple is reached.
Let’s assume that the Issuer generated $100,000 in revenues in month 9. The issuer will make a $4,000 payment ($100,000 x 4% = $4,000) to investors. Since you invested with 1% of the total amount raised ($5,000 / $500,000 = 1.0%), you would receive a $40 payment.
Scenario 2:
Total Raise Amount: $1,000,000
You Invest: $5,000
Based on the Total Raise Amount, the Issuer will share 4.0% of its revenues for the first 12 months of operations and then 13.5% of revenues thereafter, until the 1.90x Investment Multiple is reached.
Let’s assume that the Issuer generated $100,000 in month 24. The issuer will make a $13,500 payment ($100,000 x 13.5% = $13,500) to investors. Since you invested with 0.5% of the total amount raised ($5,000 / $100,000 = 5.0%), you would receive a $67.50 payment.
*The calculations above are mathematical illustration only and may not reflect actual performance. They do not take into account NextSeed fees of 1% on each payment made to investors. The exact length of time that it will take the Issuer to pay each investor in full cannot be known in advance since the Issuer's actual revenues may differ from its reasonable forecasts. If any balance remains outstanding on the maturity date, the Issuer is contractually required to promptly pay the entire outstanding balance due to each investor. Payment is not guaranteed or insured and investors may lose some or all of the principal invested if the Issuer cannot make its payments.
The exact length of time that it will take the Issuer to pay each investor in full cannot be known in advance since the Issuer's actual revenues may differ from its reasonable forecasts. If any balance remains outstanding on the maturity date, the Issuer is contractually required to promptly pay the entire outstanding balance due to each investor. Payment is not guaranteed or insured and investors may lose some or all of the principal invested if the Issuer cannot make its payments. Read Less