Once the Issuer commences operations, it will share a percentage of each month’s gross revenue with the investors as a group until they are paid in full.
Each investor will receive its proportionate share of the monthly payments made to the investors as a group.
EXAMPLE:
Gross revenue in month X
$200,000
Scenario 1:
Let’s assume that the total amount raised through this offering is $250,000 and the issuer is committed to sharing 6.0% of its gross revenue.
Revenue sharing percentage
6.0%
Total payment for month X
$12,000
If Investor A invested $2,500 of the $250,000 that was raised by the Issuer, Investor A is entitled to receive 1.0% of the $12,000 paid to investors for month X. Therefore, Investor A is paid $120 for month X.
Scenario 2:
Let’s assume that the total amount raised through this offering is $400,000 and the issuer is committed to sharing 9.0% of its gross revenue.
Revenue sharing percentage
9.0%
Total payment for month X
$18,000
If Investor A invested $2,000 of the $400,000 that was raised by the Issuer, Investor A is entitled to receive 0.5% of the $18,000 paid to investors for month X. Therefore, Investor A is paid $90 for month X.
*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