Chisos is the creator of a revolutionary new funding source for founders: the Convertible Income Share Agreement, or CISA.
A CISA is designed to give founders access to capital, without having to sacrifice excessive ownership or bet the farm. Instead, you’ll get access to funds you can use to build your company and a support network of resources, peers, and mentors.
You’ll receive a check from Chisos, which is the early investment you need to build your company. In return, you commit to sharing a percentage of your future income with Chisos. When you win, we all win. This is an inclusive, equitable approach that serves idea- and early-stage companies better than traditional funding options.
This is how we equalize opportunity.
The CISA approach gives you access to funding without forcing you to give up substantial equity like institutional investments, or manage an interest-bearing debt liability like a bank loan. It’s the money you need to grow without all the usual hang-ups.
Starting new businesses is hard. That’s why the CISA is built to respond to your business and personal situation as it evolves through salary floors, deferment options, $0 Payback Periods and more.
Here at Chisos, we’re not only looking for unicorns. We fund real capital-efficient startups and small businesses on a path to long-term growth. It’s not how most investors do it, but we’re different for a reason.
We provide much more than capital, we provide community. Chisos Circle is an open network of founders, investors and a select group of mentors. You’ll get purpose-built resources, strategic introductions, and hands-on guidance. Success is better shared.
At Chisos, we pride ourselves on transparent terms and conditions. Our process is straightforward so that you can spend less time on pitching and paperwork, and more time getting to business.
Most investors try not to talk about the fact that 90% of startups fail. (That’s why the T&Cs are in fine print.) If your startup doesn’t take off, or you choose to wind it down, here’s what happens with your Chisos investment:
The equity component expires worthless, but the ISA remains. You pay this back as a percentage of your salary over time. Standard terms start at 120 months of payments and a 2.0x repayment cap.
If your salary falls below a certain threshold, your payback amount will drop to $0 for that period of time.
In some circumstances - like welcoming a baby to your family or starting grad school - you may be eligible to defer your payments to the future.
The percentage of your income paid back during the repayment period.
How long you are projected to contribute a portion of your income to satisfy the CISA terms.
The repayment amount multiple that will complete the ISA obligation. The standard Chisos CISA uses a 2.0x repayment cap to start. This cap can be reduced through a number of mechanisms.
This is the threshold below which you won’t be required to repay for that period of time in which your annual income is below the threshold. Depending on circumstances, the payment term may be extended. See “deferment” for more details.
Some circumstances - such as going to grad school or taking a maternity/paternity leave - may qualify you to pause the repayment plan and defer the payments into the future
This the investment amount you’ll receive to build your business; the amount will be determined by your previously earned gross income.