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Flexible VCs With Structures Between Equity and Revenue-Based Investing

David Teten

They have open-sourced their investment structure , now on version 3.0, All Earnest investments are made using the Shared Earnings Agreement (SEAL) – a custom salary/profit share structure, aligned with how most bootstrapped founders are compensated. —– Indie.vc

Equity 78
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Piercing the Corporate Veil of Sweat Equity

grasshopperherder.com

Without receiving a real salary, I’d be wary of signing a non-compete in an area which I have domain expertise in. Lastly and most excitingly , it is very very easy in this structure to cause Company B to go bankrupt. The founder who owns 51% of Company B can elect to pay himself a salary of $1 USD. At what price?