I'm curious if any firms will be created where they're happy receiving 2-5x return after 5-10 years, the terms of these novel investment firms - arguably better than traditional VCs - are still trying to get extra icing from the cake and not just happy with the icing on their own slice.
"One reason for wanting to handle every possible outcome is that we are committed to a SEAL not having any control over the business: no equity, no shares, no board seat, no preferred voting rights." isn't congruent with "... there is a residual Equity Basis that remains after the Shared Earnings Cap is fully repaid" - I'm not sure if I'm misunderstanding or you're first saying there is in fact an equity-like function but in the conclusion claiming "no equity" taken?
Also, anything regarding to the value of the mentors-investors that they claim will help out an investment (because they're incentivized) is all just ear candy and hype without evidence that they'll actually add any value or give useful direction for whatever business model(s) you implement.
Maybe earn trust with founders before asking for or expecting extra icing?
Re: https://earnestcapital.com/shared-earnings-agreement/
"One reason for wanting to handle every possible outcome is that we are committed to a SEAL not having any control over the business: no equity, no shares, no board seat, no preferred voting rights." isn't congruent with "... there is a residual Equity Basis that remains after the Shared Earnings Cap is fully repaid" - I'm not sure if I'm misunderstanding or you're first saying there is in fact an equity-like function but in the conclusion claiming "no equity" taken?
Also, anything regarding to the value of the mentors-investors that they claim will help out an investment (because they're incentivized) is all just ear candy and hype without evidence that they'll actually add any value or give useful direction for whatever business model(s) you implement.
Maybe earn trust with founders before asking for or expecting extra icing?