Glossary
Understanding investment terminology helps you make confident decisions about your Deal. Here's a plain-language guide to the key terms you'll encounter on PersoniFi.
Deal Structure Terms
SAFE
Simple Agreement for Future Equity
A SAFE is an agreement between you and an investor where they provide capital now in exchange for the right to receive equity later—typically when your company raises a priced funding round or has a liquidity event.
Unlike traditional equity, a SAFE doesn't immediately give investors ownership. Instead, it "converts" to equity at a future date, usually at favorable terms for early investors.
Why it matters: SAFEs are founder-friendly because they're simpler than traditional investment agreements, don't require setting a company valuation upfront, and defer the equity conversation until your company has more traction.
Fallback Terms
What happens if your venture doesn't succeed or you return to traditional employment.
Fallback terms protect investors while giving you flexibility. If your startup path changes—you take a job, pivot away from entrepreneurship, or your venture doesn't work out—fallback terms define how investors recoup their investment.
Example: With SAFEguard, if you return to a traditional career earning over $60k/year, you begin small monthly repayments (10% of your annual income, paid monthly) until the investor receives 1.5x their original investment or 10 years pass—whichever comes first.
Why it matters: Fallback terms can make investors more comfortable backing early-stage founders because they have a path to returns even if the startup doesn't succeed. For you, it means access to capital you might not otherwise get.
Future-Equity Rights
An investor's right to receive equity in companies you start within a specified timeframe.
Some Deal structures (like PersoniFi SAFE Plus) give investors equity not just in your current company, but in any company you found during the agreement period.
Example: If an investor has future-equity rights for 10 years and you start a new company in year 5, they automatically receive their agreed percentage in that new company.
Why it matters: This reflects the PersoniFi philosophy—investors are betting on you, not just one venture. If you're a serial entrepreneur or might pivot to a new idea, this term is especially relevant.
Cash Cap
The maximum cash amount at which you can buy back a portion of equity from investors.
Some Deal structures let you "buy back" equity later by returning a multiple of the original investment. The cash cap sets the ceiling for this buyback.
Example: If you raise $50,000 with a 2x cash cap, you could return $100,000 to reclaim a portion of the equity you gave up.
Why it matters: Buyback rights let you reduce dilution if your company succeeds and you have cash available. It's a founder-friendly feature that rewards success.
Buyback
Your right to repurchase equity from investors under specified conditions.
A buyback clause lets you reclaim some or all of the equity you've given to investors by paying them a predetermined return. This is typically structured as a multiple of their original investment.
Why it matters: If your company takes off, you might want to own more of it. Buyback rights give you that option without renegotiating with investors.
Anti-Dilutive
Deal structures or terms designed to help you retain more equity over time.
As you raise more funding rounds, your ownership percentage typically decreases (dilutes). Anti-dilutive features help protect against excessive dilution.
Why it matters: Keeping more equity means keeping more of the upside when your company succeeds. Look for the "Anti-Dilutive" tag on Deal structures that include these protections.
Income Contract
An agreement where investors receive a percentage of your future earnings rather than equity in a company. Used in Athlete, Creator, and Fund Manager Deal structures.
Why it matters: Income contracts let you raise capital without giving up ownership of a company. Your earnings are shared for a defined period with defined caps.
CarryShare
A percentage of fund carry (profits) shared with investors. Specific to Fund Manager Deal structures.
Why it matters: For fund managers, carry is the primary source of upside. CarryShare lets investors participate in your fund's success.
FlexShare
An income-based Deal structure that covers earnings across multiple categories (e.g., in-sport and non-sport for athletes, or in-creator and non-creator for creators). For fund managers, FlexShare takes the form of FlexCarryShare—carry sharing with a minimum income guarantee.
Why it matters: FlexShare gives investors broader exposure to your success across different income streams.
FlexShareUpside
An income-based Deal structure focused on your primary earning category only (e.g., in-sport for athletes, in-creator for creators). Non-primary income stays entirely yours. Optionally includes a royalties component. For fund managers, FlexShareUpside is a pure CarryShare with no income guarantee.
Why it matters: FlexShareUpside gives you more protection over secondary income streams while letting investors participate in your primary career upside.
FlexCarryShare
A specialized FlexShare variant for fund managers. Combines a percentage of fund carry with a minimum income guarantee as a fallback.
Why it matters: The income guarantee reduces investor risk, making it easier for newer fund managers to attract investment.
Non-Dilutive Flexquity
An income-based Deal structure for founders who don't have an existing company. Investors receive a percentage of your capital gains rather than equity. You keep full ownership of everything you build.
Why it matters: You can raise capital without giving up any equity. Investors participate in your financial success through capital gains sharing instead.
Royalties
An ongoing percentage of revenue from specific income streams, such as music royalties, licensing, or merchandise.
Why it matters: For athletes and creators, royalties can be added as an optional component to FlexShareUpside deals, giving investors a share of passive income streams.
Valuation Cap
The maximum company valuation at which an investor's SAFE converts to equity. Sets the price investors "lock in" for their future shares.
Example: If a SAFE has a $5M valuation cap and the company later raises at $20M, the SAFE investor's shares convert at the $5M price—giving them more shares than a new investor at the same dollar amount.
Why it matters: A lower valuation cap means more equity for early investors. A higher cap means less dilution for you but may be less attractive to investors.
Cap (Income Contract)
The maximum total payout to investors under an income contract. Once investors receive this amount, the contract ends regardless of time remaining.
Why it matters: Caps protect you from unlimited obligations. Investors know their maximum return upfront, and you know your maximum commitment.
Min Threshold
The minimum annual income level before income-sharing payments begin. Below this amount, no payments are made.
Example: With a $60,000 min threshold, if you earn $50,000 in a year, no payments flow to investors that year. If you earn $80,000, payments are calculated on your income above the threshold.
Why it matters: Thresholds ensure you're only sharing income when you're earning well enough to support it. Payments are tied to your success.
Rights (0–4)
The level of investor governance rights attached to equity. Ranges from 0 (no special rights) to 4 (maximum investor protections).
Why it matters: Higher rights give investors more oversight (voting, information access, etc.). Lower rights keep you in fuller control of your company.
Investment Amount Terms
Target Investment Amount
The total amount you're aiming to raise through your Deal.
This is your goal—enough capital to reach your next meaningful milestone. Investors can see this target on your Deal page.
Minimum Investment Amount
The smallest total investment you'll accept to proceed with the Deal.
If investor commitments don't reach this threshold, the Deal doesn't proceed and no money changes hands. This protects you from raising too little to be useful.
Tip: Set your minimum at the amount that would genuinely move your venture forward. Too low and you might end up with capital that doesn't cover your needs.
Equity Terms
Equity
Ownership stake in a company, typically represented as a percentage.
When an investor receives equity, they own a piece of your company and share in its success (or failure). Equity holders may have rights to vote on company decisions and receive proceeds if the company is sold or goes public.
Dilution
The reduction of your ownership percentage as new equity is issued.
When you bring on new investors or issue equity to employees, the total number of shares increases, which means each existing share represents a smaller percentage of the company.
Example: If you own 100% of your company and give an investor 10%, you now own 90%. If you later give another investor 10%, you own 81% (90% x 90%).
PersoniFi-Specific Terms
Personal Network
Friends, family, colleagues, and supporters you already know who might invest in your Deal.
Raising from your personal network is often faster because these people already trust you. PersoniFi gives you tools to share your Deal with them professionally.
PersoniFi Network
PersoniFi's community of verified investors actively looking to back founders, creators, and athletes.
Getting featured to the PersoniFi Network expands your reach beyond people you already know. Deals go through additional review to ensure quality for investors.
Deal
Your complete fundraising package on PersoniFi—your story, your opportunity, and your investment terms combined into a single page investors can evaluate and commit to.
Funding Page
The public-facing page where investors view your Deal. It includes your profile, pitch, video, deck, and investment terms.
Contract & Process Terms
Contract Execution Phase
The period after enough investors commit to meet your target, during which legal agreements are signed.
Once you hit your funding goal, PersoniFi facilitates the paperwork. All parties sign the necessary agreements before any money moves.
Commitment
An investor's stated intent to invest a specific amount in your Deal.
Commitments are tracked toward your target. Once you reach your minimum (or target), the Deal moves to contract execution.