Upon due diligence of the financial projections, we ask the potential investors to sign a Letter of Intent with the investment size contribution they will be participating in. We will also ask investors to outlay 10% of their investment to work on the next steps that will be deducted from their total investment contribution.
Example: Investor 1 signs a letter of intent for $500,000, which accounts for 11% of the total investment size. Investor 1 will need to contribute 10% of the investment ($50,000) immediately to show good faith.