Meaning of Individual Investment on EelamClub 

Individual investment on EelamClub refers to a person (an investor) funding a business or project listed on the EelamClub crowdfunding platform in exchange for a share of the profits and losses. Unlike traditional donations, this model allows individuals to financially support businesses while earning returns.

How It Works on EelamClub:

1. Founder Lists a Business Idea (e.g., a Ceylon Tea Shop in India).
2. An Investor Funds the Business (e.g., $15,000 for 50% profit/loss).
3. Profit Sharing Agreement is established (Investor 50%, Founder 43%, EelamClub 7%).
4. Founder Works Full-Time and receives a salary from the business.
5. Investor or Founder Can Take Over if agreed upon.

Why This Model?

• Encourages Tamil entrepreneurs to start businesses with investor backing.
• Gives investors an opportunity to support businesses while earning returns.
• EelamClub ensures businesses are run transparently and effectively.

This structure makes sense for an investment agreement on EelamClub, ensuring fairness while allowing the platform to sustain itself. Here’s a clearer breakdown:

Investment & Profit Sharing Model on EelamClub

1. Investor provides 100% capital for the business.
2. Profit Sharing:
   • Founder (Business Owner): 43% of profits/losses.
   • Investor: 50% of profits.
   • EelamClub: 7% of profits (for oversight & ensuring compliance).

Key Considerations:

• Loss Handling: Since the investor funds the entire capital, will they also absorb 100% of losses, or is the founder responsible for 43% of the losses?
• Exit Strategy: Can the investor sell their stake? Does the founder have the option to buy out the investor?
• EelamClub’s Role: Will the 7% be a fixed commission, or does it come with active monitoring and advisory services?

This investment model ensures that the founder is financially supported while being fully committed to the business. Here’s how it would work with an example:

Ceylon Tea Shop Investment Breakdown

• Total Capital Needed: $15,000 (100% funded by the investor)
• Profit & Loss Distribution:
  • Investor: 50% of profit/loss
  • Founder: 43% of profit/loss
  • EelamClub: 7% of profit (for oversight and ensuring business success)
• Founder’s Salary: Founder will receive a monthly salary for full-time work.

Example Scenario – Business Performance

Case 1: Monthly Profit of $3,000

• Investor gets 50% → $1,500
• Founder gets 43% → $1,290
• EelamClub gets 7% → $210
• Founder’s Salary → Fixed monthly salary (e.g., $800, separate from profit share)

Case 2: Monthly Loss of $2,000

• Investor bears 50% → $1,000 loss
• Founder bears 43% → $860 loss
• EelamClub still gets 7% cut → No cut in losses (unless structured as a management fee)

Key Considerations:

1. Founder’s Salary: Is it fixed, or does it depend on business performance?
2. Investor’s Security: Does the investor get any collateral, equity, or voting rights?
3. EelamClub’s Role: Does EelamClub only monitor, or does it actively manage and guide the business?
4. Exit Strategy: Can the founder buy out the investor? What happens if the business closes?

Your model allows flexibility for both the investor and the founder to take over the business under mutual agreement. Here’s how that can be structured:

Business Takeover Terms

1. Investor’s Right to Take Over:

   • If the founder fails to run the business properly or wants to exit, the investor can take full control of the business.
   • The investor may hire a new manager or sell the business at their discretion.

2. Founder’s Right to Take Over:

   • The founder can buy out the investor’s share if they want full ownership.
   • The buyout amount can be mutually agreed upon or based on business valuation at the time.

3. Mutual Exit Plan:

   • If both parties agree to sell the business, profits from the sale are split based on ownership percentages (Investor 50%, Founder 43%, EelamClub 7%).
   • If the business closes, assets are sold to recover costs, and losses are split accordingly.

4. EelamClub’s Role:

   • Acts as a mediator to ensure fair agreements.
   • Continues to receive its 7% share as long as the business operates under this structure.

Meaning of Individual Investment on EelamClub

Individual investment on EelamClub refers to a person (an investor) funding a business or project listed on the EelamClub crowdfunding platform in exchange for a share of the profits and losses. Unlike traditional donations, this model allows individuals to financially support businesses while earning returns.

How It Works on EelamClub:

1. Founder Lists a Business Idea (e.g., a Ceylon Tea Shop in India).
2. An Investor Funds the Business (e.g., $15,000 for 50% profit/loss).
3. Profit Sharing Agreement is established (Investor 50%, Founder 43%, EelamClub 7%).
4. Founder Works Full-Time and receives a salary from the business.
5. Investor or Founder Can Take Over if agreed upon.

Why This Model?

• Encourages Tamil entrepreneurs to start businesses with investor backing.
• Gives investors an opportunity to support businesses while earning returns.
• EelamClub ensures businesses are run transparently and effectively