How Investment Works

an investment in Compton Startups is like investing in all of the startups in the incubator!

all retail investments are made at a base valuation of $1 million for the entire stable of companies. funds are then devoted to each of the companies n the most efficient manner based upon amount available, prospects for success, etc.

for example, an incoming $1000 investment might be best utilized to pay for a new bespoke website for Group Cars. Or perhaps $500 spent on that website and $500 going towards the marketing budget for Yelp For Exes.

as soon as any one of the businesses graduates (i.e. receives an outside investment round valuing the company at $10 million or more) our investors have two options:

  • cash out your original CS investment at a gain of 10x, or
  • if the graduate is traditionally financed you may convert all or part of your CS investment as an investor in the round, or
  • if the graduate is financed using a crypto token, you may convert all or part of your CS investment to that token as part of that same round.