Financial Instrument
What is a PRPA?
A Project-Based Revenue Participation Agreement is a financial arrangement where backers provide capital to a builder in exchange for a percentage of future project revenue, up to a capped return.
Not a loan.
No interest rates, no fixed repayment schedule, no personal guarantees. Builders repay only when revenue flows.
Not equity.
Backers never own a share of your company. No board seats, no dilution, no loss of control.
Revenue-linked.
A fixed percentage of project revenue is shared with backers monthly until the return cap is reached.
Time-bounded.
Every PRPA has a defined duration (typically 3–5 years). After the term ends, the agreement expires — even if the cap isn’t hit.
Capped returns.
Backers earn up to a multiple (e.g. 2.5x) of their participation amount. Once the cap is reached, payments stop.
Legally distinct.
PRPAs are structured as revenue participation agreements — not securities, not ISAs. Project-scoped, not income-scoped.
How a PRPA works.
Builder defines the deal.
A builder creates a project on BackHumans, sets a raise amount (e.g. $20,000), revenue share percentage (e.g. 10%), duration (e.g. 5 years), and return cap (e.g. 2.5x).
Backers participate.
Backers review the builder’s profile, social posts, milestones, and deal terms. They commit capital through the platform into an escrow account.
Capital is released.
Once the raise target is met, funds are released from escrow to the builder. The PRPA agreement is activated.
Revenue flows back.
Each month, the agreed revenue percentage is automatically distributed to backers proportional to their participation. Revenue is verified via Plaid.
Agreement completes.
The PRPA ends when the return cap is reached or the term expires — whichever comes first. The builder retains 100% ownership throughout.
Example deal.
Sarah is building a project management tool for freelancers. She needs capital to hire a designer and run ads.