Calculating Return For Your Investors
Determine Capital Raising Needs
Estimate the total amount of money needed for the project, which will be raised from investors. 00:00
Round Up Total Costs
Round up the total project cost to a manageable figure, ensuring it is presentable and easy to justify to investors. 31
Set Value Per Share
Calculate the value per share based on the total amount to be raised and the number of shares issued. Adjust as necessary for investor presentation. 92
Subscription Value Calculation
Determine the subscription value, representing the amount of money to be raised from investors. Adjust based on your own contributions and the amount already invested in the project. 153
Investor Return on Equity (ROE)
Calculate the return on equity for investors, which shows the percentage return they will make based on their investment. This differs from the overall project return on equity. 215
Investor Profit Share
Establish the profit share for investors, based on the total amount raised and their ownership percentage in the project. 247
Determine Minimum Investment Requirement
Set a minimum investment amount per investor, ensuring compliance with regulations and simplifying management by limiting the number of investors. 278
Adjust Share and Profit Distribution
Finalise the number of shares and the corresponding profit each investor will receive, ensuring transparency and clarity in investor communications. 375