Security Campaign Builder - 15 - Campaign Details - Offering Info - Revenue Sharing

Security Campaign Builder - 15 - Campaign Details - Offering Info - Revenue Sharing


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Offering Info – This section of the Campaign Builder outlines the terms of the securities being offered and will be customized depending on the type of security you’ve selected when building your campaign (ie: Equity, Debt, Revenue Sharing, Convertible Note, Future Equity)

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Investment Rounds – Previous Rounds – List any rounds of fundraising you’ve conducted previously where you’ve sold securities. You can add multiple funding rounds by clicking “Add One More.”

Date – The date the securities were sold or closing date

Amount – The dollar amount sold in the offering. If an amount was offered that was greater than the amount of securities sold, report only the amount sold.

Round – The label of the previous funding round (ie; Seed, Series A, Series B etc.)

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Current investment round – The label for the present funding round (ie; Seed, Series A, Series B etc.)

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Terms of Securities (Revenue Sharing) –

Term - This is the time period over which interest payments will be made on the securities. Typically, at the end of the term, any principal that has not yet been repaid to investors will be due.

Multiplier – This is the multiple on an investors capital you are pledging to repay from a portion of your revenue. For example, a multiplier of “1.5” would signify an obligation to repay investors 1.5x their invested capital of the term of the security. The multiplier may not require the entire length of the Term before it is fully paid. Your obligation to the investor in the securities offered is completed upon payment of the multiplier.

Revenue Sharing Type – You have the option to share revenue with investors in multiple ways. Royalties on unit sales, or a share of gross revenue are more common revenue sharing methods. If your offering does not fall into these categories, you can select “other” and describe.

Revenue Sharing Amount – This is the amount pledged to your investors. You will need to specify whether the amount needs to be expressed as a percentage (%) or dollar amount ($). For example, in the case of Royalties on Unit Sales, this number may be a specific dollar amount on each unit sold, while in the case of a share of gross revenue, this number might be a percentage of monthly revenue.

Payments Frequency – The interval at which payments will be made to investors. Some typical payment frequencies, such as monthly, quarterly, semiannually are listed. If your offering requires more customized payment terms, select the choice “other” to open an input box that will allow you to describe the terms.

Voting Rights – If the securities being offered have voting rights attached to them or could, describe those rights here in detail.

This tutorial continues for the next section of the campaign builder here.