Part of launching any new financing instrument is increasing the number of investors that are comfortable using it for investments. We created the Shared Earnings Agreement (SEAL) because we felt we needed a financing agreement that aligned investors with founders building calm, sustainable, profitable companies. As part of the process of helping more investors understand […]
This post will answer some common questions from investors looking to use a SEAL themselves or considering co-investing with us. If you are a founder looking to raise capital you will probably find the main Shared Earnings Agreement page more helpful. Relevant excerpts from our public term sheet are pasted inline but the full document […]
After explaining Shared Earnings Agreements to literally 1,000s of founders and investors, we’ve made a few clarifying changes. The main Shared Earnings Agreement page has been substantially updated. The publicly available term sheet there has been bumped to v1.3. You can view v1.0 here.
Six weeks ago Earnest Capital soft-launched by posing the question: could we build a funding model for bootstrappers? We had been working for months on the technical details of an early-stage investment structure that aligns an investor with a founder who wants to build a sustainable, profitable, calm company and doesn’t want to raise traditional venture […]
We received a ton of good hard questions about the Earnest Shared Earnings Agreement, particularly around “how do the numbers actually work?” Well, we’re building a fancy web calculator for it, but I thought I would just pop the hood on the Google Spreadsheet (click here to access it directly) we’ll use for it and let […]
Huge thank you to Joe Wallin, Kevin McArdle, and Rich Thornett for their help with this post and project. This is a post about the technical decisions we’ve made on a new “funding structure for bootstrappers” and a call for feedback from the founder community. But first, we need to talk about The Problem.