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PersoniFi Documentation

website·Indexed 31 days ago

https://docs.joinpersonifi.com

Guides and resources for the PersoniFi platform, a system for investing in people. Includes documentation on account creation for founders, athletes, fund managers, and accredited investors, as well as detailed references for deal structures such as PersoniFi FlexShare, PersoniFi SAFEguard, and SAFE+plus.

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What's inside PersoniFi

  1. Overview of PersoniFi Investment Model

    PersoniFi allows investors to invest in human potential rather than just companies. Deals are customizable and generally follow two core principles:

    1. Upside potential: Gained through equity in ventures, income share from earnings, or both.
    2. Downside protection: Fallback terms designed to return the investor's capital if the primary venture fails.

  2. Overview of the PersoniFi Investment Model

    PersoniFi allows investors to invest in a person's potential rather than just a business's performance. This model enables founders, athletes, and creators to access early capital without requiring existing revenue, a business entity, or a specific growth model. Unlike angel investing (high risk/high upside) or loans (no upside/fixed repayment), PersoniFi deals typically offer both upside potential and downside protection (e.g., if a founder's first company fails, the investor may receive a portion of the individual's future salary or equity in subsequent ventures).

  3. Compare PersoniFi investment types

    PersoniFi offers four distinct investment types tailored to different investor goals, ranging from backing founders to supporting aspiring creators or providing financial cushions for ambitious individuals. Each type combines different instruments such as Startup Equity (SAFE), Income Share Agreements (ISA), and equity in future career output.

  4. Understand PersoniFi FlexShare deal structures

    PersoniFi uses Income Contracts where investors participate in an athlete's future earnings rather than equity. Athletes can customize terms and see a real-time Deal Summary. There are two primary structures: FlexShare and FlexShareUpside.

  5. Use PersoniFi Non-Dilutive Flexquity for pre-company funding

    For founders without an existing business who wish to retain full ownership, PersoniFi Non-Dilutive Flexquity uses a pure Income Contract. Investors receive a percentage of the founder's capital gains (CapGains) rather than equity.

  6. Understand the PersoniFi funding and contract process

    The fundraising process on PersoniFi follows these stages:

    • Commitment: An investor's stated intent to invest a specific amount. These are tracked against the Deal's target.
    • Contract Execution Phase: The period triggered after the minimum or target investment amount is met. During this phase, PersoniFi facilitates the signing of legal agreements by all parties before funds are transferred.

  7. Adjust royalty rates in deal structures

    Modifying royalty terms impacts the return stream for investors and the revenue retained by the user:

    • Adding royalties: Creates an additional return stream, making the deal more attractive to investors.
    • Increasing the rate: More royalty revenue goes to investors, increasing their passive income returns.
    • Decreasing the rate: The user retains more of the royalty revenue.

  8. Choose a deal structure for Athletes

    Athletes can choose between FlexShare and FlexShareUpside based on how much of their income they wish to share with investors.

    • FlexShare: Best for raising more capital. Investors get exposure to both in-sport and non-sport income.
    • FlexShareUpside: Best for protecting non-sport earnings (e.g., business ventures, consulting, side projects). Only in-sport earnings are shared.
    • FlexShareUpside with Royalties: Recommended for athletes with significant endorsement or licensing deals; allows investors to participate in specific revenue streams like merchandise without touching full income.
    Deal StructureIn-Sport IncomeNon-Sport IncomeRoyalties (Optional)
    FlexShare✓✓—
    FlexShareUpside✓—✓

  9. Adjust parameters in a SAFEguard deal

    Adjusting the income-based fallback terms in a SAFEguard deal changes the risk and repayment profile:

    Adjusting the Cap:

    • Increase: Higher maximum repayment obligation for the founder; better downside protection for investors.
    • Decrease: Lower repayment obligation for the founder; less protection for investors.

    Adjusting the Min Threshold:

    • Increase (e.g., $60k → $80k): Repayments start only at higher income levels; investors wait longer for repayments.
    • Decrease (e.g., $60k → $40k): Repayments start at lower income levels; faster repayment for investors.

    Adjusting the Rate:

    • Increase (e.g., 10% → 15%): Higher monthly payments for the founder; faster repayment for investors.
    • Decrease (e.g., 10% → 5%): Lower monthly payments for the founder; slower repayment for investors.

  10. Prepare assets for creating a PersoniFi Deal

    To complete the Deal setup efficiently (estimated 10-15 minutes), prepare the following assets. While the app can guide you through creating these, having them ready improves the strength of your page:

    • Professional Photo: A clear, friendly image of yourself (max 5MB).
    • Video Introduction: A 60-90 second video explaining who you are and what you are building (max 150MB). This is optional but increases engagement.
    • Pitch Deck: A link to a PDF, Notion page, or Google Slides presentation.
    • Personal Story: A description of your background, unique traits, and accomplishments.

  11. Compare Creator deal structures

    Choose a deal structure based on the desired income/equity sharing:

    • FlexShare: Shares In-Creator Income and Non-Creator Income.
    • FlexShareUpside: Shares In-Creator Income and optional Royalties.
    • PersoniFi SAFE: Provides Equity in future companies.
    Deal StructureIn-Creator IncomeNon-Creator IncomeRoyalties (Optional)Equity
    FlexShare✓✓——
    FlexShareUpside✓—✓—
    PersoniFi SAFE———✓ (future companies)

  12. Adjust PersoniFi Fund Manager deal parameters

    Modifying the terms of a Fund Manager deal impacts both the manager's obligations and the investor's potential returns:

    ParameterChangeImpact on ManagerImpact on Investor
    CarryShareIncreaseMore fund carry goes to investorsHigher return potential, more attractive
    CarryShareDecreaseManager keeps more carryLower returns, less attractive
    CapIncreaseHigher maximum total payoutMore potential returns
    CapDecreaseLower total obligationReturns limited sooner
    Min ThresholdIncreaseGuarantee payments start at higher incomeLonger wait for guarantee, less attractive
    Min ThresholdDecreaseGuarantee payments start at lower incomeFaster guarantee activation, more attractive
    RateIncreaseHigher guarantee payments when activeCap reached faster, more attractive
    RateDecreaseLower guarantee paymentsSlower returns, less attractive