Equity Deal Mechanics
Equity deal mechanics
PAID opens the door to breakthrough private companies through a streamlined investment model. No six-figure minimums, no bank wires - just a registered wallet, stablecoins (USDC/USDT), and crypto-native investing in high-growth startups.
How PAID equity deals work
PAID uses Special Purpose Vehicles (SPV) to pool investor funds for single company investments. This regulated structure allows retail investors to access private equity opportunities typically reserved for institutions and accredited investors.
Each investment creates a legal entity that pools multiple investors' money to buy shares in one company. Think of it as a shared investment account where everyone owns a proportional stake based on their contribution.
Geographic access
PAID equity deals are available to:
US accredited investors (subject to accreditation verification)
Global retail investors from eligible jurisdictions
Deal pipeline and sectors
PAID's equity deals span multiple high-growth sectors including AI & Machine Learning, Robotics & Humanoid Technology, FinTech, Defense Technology, Web3 Infrastructure, and Clean Energy. These opportunities cover investment stages from Seed through Series C funding rounds, sourced through our internal team, partnerships with tier-1 investors and angels globally.
Every deal passes strict due diligence covering legal, IP, traction, and cap table analysis before reaching the PAID community.
Fee structure and staking benefits
PAID's tier-based fee structure rewards long-term commitment with dramatically reduced costs compared to traditional investment funds.
Traditional funds typically charge 20% carry fee. PAID Diamond tier charges 0% carry, meaning you keep 100% of potential gains.
Diamond
375,000
0%
Platinum
150,000
5%
Gold
75,000
10%
Silver
37,500
15%
Bronze
7,500
20%
Normal
0
25%
Important: You must hold your staked $PAID from investment until exit to maintain fee discounts. Early unstaking results in the highest carry rate (25%).
All investors share the SPV’s legal and operational setup costs on a pro rata basis, referred to as the entry fee. This fee applies across all membership tiers unless otherwise specified, though Diamond-tier members may receive exemptions on select equity deals. The entry fee can be up to 10% of the invested amount, but is typically lower for larger raises since costs are distributed across more participants.
Investment process
Investing in equity deals through PAID follows a simple, crypto-native process:
Register on PAID and complete the one-time KYC process.
Choose a deal and pledge your contribution
Browse available opportunities, send USDC/USDT payment, and digitally sign your term sheet.
PAID handles everything else
PAID manages all legal filings, quarterly reporting, and exit distributions. When the company exits, proceeds are sent directly back to your wallet.
Investment costs and timeline
Investment structure details:
Investment timeline: Typically 3-5 years until exit event
Exit methods: Acquisition, IPO, or secondary sale
Minimum investment: $500
Payment methods: USDC or USDT only
Key advantages over traditional equity investing
Accessibility
$500 minimum vs. $100K+ traditional minimums
Crypto-native payments vs. bank wires and paperwork
Global access vs. geographic restrictions
Transparency
Quarterly project reports vs. chasing founders for updates
On-chain payment tracking vs. opaque processes
Clear fee structure vs. hidden costs
Efficiency
Digital signing vs. paper forms
Instant payment confirmation vs. weeks of processing
Automated exit distributions vs. manual processes
Risk considerations
Equity investments are long-term commitments with inherent risks:
Liquidity risk: Funds are locked until exit event (3-7 years typical)
Company risk: Startups may fail or underperform expectations
Market risk: Exit valuations depend on market conditions
Regulatory risk: Investment structures are subject to regulatory changes
Only invest amounts you can afford to lock up for the full investment period.
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