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A New Offering and A New Security: Revenue Participation Note

August 11, 2016

Read Time: 2 - 4 Minutes

The final installment in our securities series is also the newest type of security being offered on FlashFunders. Before heading into your next investment, it is a good idea to see what type of securities startups are offering. Once you educate yourself on what the offering consists of, you will be able to make a better judgement on whether or not the investment fits your needs. Click through to see how the revenue participation note works.

salon_de_lingerie.jpg Startups that offer a Revenue Participation Note

 

Revenue Participation Note: Salon De Lingerie

A quasi equity financing class that provides a loan with a promissory note. Repayment of the loan is tied to a percentage of the company‚Äôs revenue. Investors receive periodic (e.g. quarterly) payments payments from the first dollar of revenue generated. As revenues grow, investors typically see their revenue participation payments increase. Be aware that while your payments will grow with increased revenue, your participation percentage will stay fixed. 

Salon De Lingerie provide an in depth visual breakdown of their investment structure on their offering page. Click on the button below to visit their offering page for more details.  If you're interested in other securities our startups are offering, check out our most recent blog posts on preferred stock and convertible securities

 

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