Small Business Investments

Our Approach

We invest in a diversified portfolio of promising small businesses across sectors such as technology, retail, manufacturing and services.  We provide capital in exchange for either equity or structured revenue‑sharing, giving entrepreneurs the funds they need to grow while entitling Profit Prophet Capital to a share of future profits.

Our team sources opportunities, performs thorough due diligence and negotiates terms.  In an equity deal we buy a percentage of the company and share in profits as it grows.  In a revenue‑sharing or debt deal we provide a loan that is repaid with interest or a percentage of revenue.  As these businesses generate cash flow, distributions flow into our earnings pool and are paid out to shareholders as dividends.

• Potential for outsized returns: A successful small business can grow much faster than mature corporations, providing significant upside for early investors.
   
• Regular income options: Structured debt or revenue‑sharing can provide predictable cash flows while still offering participation in growth.
   
• Diversification: Returns from privately held small businesses are less correlated with stock and bond markets, adding another layer of diversity to your portfolio.
   
• Positive impact: Your investment helps entrepreneurs expand, hire and innovate, fostering economic growth and job creation.

Risks to Consider

Many small businesses fail, and it’s possible to lose part or all of your invested capital.  Equity stakes are illiquid; you can’t sell them easily, and you may wait years for a return.  Debt deals are less risky but limit your upside.  Economic downturns, competitive pressures or management missteps can reduce or delay returns.  That’s why we spread investments across multiple companies and perform rigorous financial and operational due diligence before committing capital.

We leverage experience in entrepreneurship, finance and operations to identify businesses with strong fundamentals and credible leadership.  We diversify across industries and structures (debt, equity and revenue‑sharing) to balance risk and reward.  Our interests are aligned with yours: there are no management fees, and we only earn from the same profits that flow to investors.  With clear reporting on each investment’s performance and the overall portfolio, you’ll always know how your money is working for you.