How It Works

Capital and partnership, in a single deal.

Most small business owners have never structured a private equity transaction. The People's Fund provides the framework, the standards, and the community that make peer investment work — reducing friction, preventing disputes, and protecting every party.

The Process

Five steps from application to aligned investment.

01

Apply & Get Vetted

Submit verified revenue documentation and complete a founder interview. Every member is a credible potential partner.

02

Choose Your Tier

Explorer, Builder, or Cornerstone. Membership funds the network and unlocks the directory, deal board, and events.

03

Find Strategic Fits

Browse the member directory and deal board. The team curates warm introductions between complementary businesses.

04

Structure the Deal

Use standardized term-sheet templates and valuation guidance. Independent legal counsel is required on every deal.

05

Invest & Grow

Close an investment that bundles capital with distribution, partnership, and accountability — aligned for the long term.

Vetting

Quality protects the network.

Every member is screened before they ever appear in the directory. Rigorous, consistent vetting is what makes a warm introduction worth something — when you meet another member, you already know they are a real, credible operator. The standards scale with the tier you apply for.

Higher tiers carry higher revenue thresholds, but the documentation, references, and founder interview are required of everyone — no exceptions.

Vetting Checklist

What every applicant provides

  • Verified annual revenue documentation (tax returns, P&L, or bank statements)
  • Minimum revenue: $250K Explorer / $500K Builder / $1.5M Cornerstone
  • 2+ years in operation with consistent revenue history
  • Business structure: LLC, S-Corp, or C-Corp (no sole proprietors)
  • 2 professional references (customer, vendor, or advisor)
  • 30-minute founder interview + background check on primary owner

A one-time vetting & listing fee of $500 (Explorer/Builder) or $1,000 (Cornerstone) applies at application — credited toward first-year membership if accepted.

Deal Frameworks

Four approved deal structures.

Standardized, attorney-reviewed templates keep every transaction clear and fair. Members start from a proven framework and tailor the terms with their own counsel.

01

Minority Equity Investment

Investor receives 5%–25% ownership for cash, valued on an agreed revenue-multiple methodology. Best for strong recurring revenue.

Typical: $50K–$250K for 5%–20% equity; buyback provisions at 3–5 years.

02

Revenue Share Note

Investor receives a percentage of monthly gross revenue until a return multiple (1.3x–1.5x) is met. No equity changes hands.

Typical: $25K–$150K at 3%–8% of monthly revenue; 18–36 months.

03

Convertible Note

Debt that converts to equity at a future event, with discount rate and valuation cap. Best for earlier-stage companies.

Typical: 6%–8% interest, 15%–25% discount; converts at next raise or 3-year anniversary.

04

Strategic Investment + Service Agreement

Combines a small equity/revenue-share investment with a formal commercial agreement (vendor, distribution, or co-marketing). The highest-value structure.

Typical: 5%–15% equity + a 12–24 month service or distribution contract.

Valuation Guidance

Standardized valuation, fewer disputes.

Valuations are estimates, not guarantees — all parties are encouraged to seek independent financial advice.

Business Type Primary Metric Typical Multiple Notes
SaaS / Software ARR 4x–8x ARR Higher with 80%+ retention
Services / Agency EBITDA 3x–5x EBITDA Adjust for owner dependency
E-Commerce / Product Revenue 1x–3x Revenue Margins & growth rate key
Food & Beverage Revenue 1x–2x Revenue Location & brand dependent
Manufacturing / Distribution EBITDA 4x–6x EBITDA Equipment & IP add value

Ready to invest in — and with — companies like yours?

Apply once, get vetted, and join a network where capital comes with partnership, distribution, and people who are genuinely on your side.