Capital structure
How much to raise, in what form, alongside what existing equity or debt, and in one round or several. Later rounds reuse the platform's follow-on offering tools.
Service 04
Terms that match how your project actually makes money.
A bank loan asks for the same repayment every month, whether or not the money has come in. An offering can be shaped around your project instead: when income arrives, how much it varies, how long it lasts. We design the terms and the order in which money is paid out, test them in a downside case, and set them up as the distribution waterfall the platform uses to pay investors.
- When
- Alongside structure and investor rules
- You receive
- Term design, waterfall and three-case model
- Sets up
- Distributions in the platform
Start with the asset, not the spreadsheet
We begin with how the asset behaves. When does money come in? How much does it vary from year to year? What has to be paid before investors see anything? How long is the asset's useful life? The answers set the term, the payment schedule and the order in which money flows.
Only then do we build the model. That way the numbers explain the asset instead of decorating it.
What we design
Terms
Term length, entitlements, payment dates, early redemption and what happens at the end. Drafted as a term sheet for counsel to turn into offering documents.
Distribution waterfall
The order in which money leaves the vehicle: costs, reserves, principal, then any split between investors and your business. Configured in the platform, so each payout follows it.
Base, upside and downside model
Three cases, each with its assumptions stated. The downside case is the one we spend the most time on.
Every assumption carries its evidence tier
We label every number by how much it can be trusted, so the model is honest about what is known and what is estimated.
| Tier | What it means | Example |
|---|---|---|
| Actual & verified | Measured, documented, checkable by a third party | Audited accounts, signed contracts, measured output |
| Comparable | Drawn from similar assets or published benchmarks | Output of comparable orchards or buildings nearby |
| Forecast | Our reasoned estimate, with the logic shown | Output in a future year, future prices |
Investors, counsel and regulators can see at a glance which parts of the model rest on facts and which on judgement.
What you receive
- A recommended capital structure, with the alternatives considered
- A term sheet for counsel to draft from
- The distribution waterfall, as a diagram and in plain words
- A base, upside and downside model, with every assumption tiered
- A one-page plain-language summary of the terms, for counsel to review before it is used with investors
- The payment schedule and waterfall configured in the platform's distributions module
What we need from you
- Historical financials or operating data for the asset
- Operating costs, capital expenditure plans and existing debt
- Any valuations, technical reports or market studies
- How much control and upside you want to keep as owner
- Your view on timing: when you need the money and when you could pay it back
Terms shaped by the asset, run by the platform
A long-lived asset can carry a long term. An asset that takes years to reach full output can pay principal first and share results later. The shape of the terms should follow the asset, not a standard template.
Whatever shape you choose, the platform applies it. When you approve a payout in your console, the distributions module splits it according to the waterfall and pays every investor on the register, with a statement for each.
Before and after this step
Financial design runs alongside Structure & jurisdiction and Investor rules, because the vehicle and the investor base both limit what terms are possible. Its payment schedule and waterfall are set up during Platform setup, and the platform then runs the payments to the register.
Questions we get
Will you tell investors what they will make?
No. We design terms and test them. What is communicated to investors is set out in the offering documents drafted by counsel and approved where required.
Can we raise in several rounds?
Yes. We design the capital structure with later rounds in mind, so a follow-on offering can reuse the vehicle, the rules and the platform.
Do you value the asset?
We are not a valuer. Where a formal valuation is needed, it comes from an independent valuer, and we use it as an input to the model.
How is this different from a bank loan for a small business?
Depending on the structure, investors can share in the project's results instead of receiving fixed monthly repayments, and bank-style collateral may not be required in the usual sense. You still owe investors what the terms say, so we test the terms against a bad year before anything is offered.
Financial models are planning tools, not forecasts of investor outcomes.
Ready to raise money on your own platform?
Tell us about your project in five short steps. Within a week you'll know whether it fits, what's missing and how quickly your investor portal could go live.