You have the skills that startups need but you don't want to work for free (or forever). Don't let that stop you from getting started.
With a Shared Success Agreement you decide how much to get paid now and how much earn via revenue share. From 0-100%.
Earn a share of the startup's revenue at a multiple that you determine. Invest current capacity to create future cash flows.
Here's an example in plain English: You need $50k of software development services. A developer is willing to accept 20% ($10k) via a Shared Success Agreement. You pay $40k now and agree to a 3x multiple on the remaining $10k to account for the risk that the developer may never get paid. The developer earns 10% of your revenue until the 3x ($30k) is paid in full. All variables can be customized to your situation.
Legal fees and ambiguity can stop projects from getting started. The SSA makes it simple to get on the same page.
The SSA avoids the valuation conversation and keeps the cap table clean for the founder. They share cash but keep control.
It's not a liability for the founder because it's based on future revenue. Good news! It's not taxable until payment is made.
Success payments continue only until the payment cap (based on the multiple) is reached. It preserves options for founders.
Invest time and talent that you have now to help new companies get going. Earn future payments as they grow and succeed.
Support your startup ecosystem and build a portfolio of companies who often are overlooked by other investors.
Use the interactive calculator below to customize an agreement with your own terms. When you're done you can generate an editable Google doc to use for projects on Nimbus or elsewhere.