Premier Pass
This might be one of the most attractive pre-sale offerings you’ve heard of: Vedoo offers investors the opportunity to purchase the Premier Pass, starting at $150.00, and participate in the first four years of app revenues through a revenue share. This will allow investors to even make more profit with their investments. The participation model and the calculation method are described in detail below.
Participation model:
Investment category: Premier investors who invest more than 150$.
Investment period: The first four years after the market launch of the app.
Revenue share: 5% of the total annual revenue flows into an investment pool.
Payout limit: There is no additional payout limit.
Distribution: The investment pool is distributed in proportion to the amount invested by each investor compared to the others.
Sample calculation:
A hypothetical situation of three large Premier investors is used to illustrate the distribution of the turnover participation. Let us assume that Vedoo's annual turnover is $200 million.
Calculation of the investment pool:
Total turnover: $200 million
Investment pool (5%): $200 million * 0.05 = $10 million
Investors and their investments:
Investor A invests $5 million
Investor B invests $2 million
Investor C invests $1 million
Total investment: $5 million + $2 million + $1 million = $8 million
Distribution of the investment pool:
Investor A's share: ($5 million / $8 million) * $10 million = $6.25 million
Investor B's share: ($2 million / $8 million) * $10 million = $2.5 million
Investor C's share: ($1 million / $8 million) * $10 million = $1.25 million
Summary:
Premier Investors who invest more than $1,000 will receive a share of the revenue pool for the first four years after the launch of the Vedoo app. The pool, which represents 5% of the annual revenue, is distributed proportionally to the amount invested compared to other Premier Investors. This ensures that larger investments are rewarded accordingly higher and the participation is not diluted.
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