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.
How a PRPA Works
Simple, transparent, and aligned with both parties.
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 integration.
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
Builder
Sarah — SaaS Developer
Sarah is building a project management tool for freelancers. She needs capital to hire a designer and run ads.
Key Characteristics
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.