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How long until I see a return?

The amount of time it takes to see a return is highly dependent on the type of investment contract.

  • Debt.  A simple loan will define the number of months until it is paid back.  For a revenue share, it depends on their projections for future revenue.  The faster the business makes money, the faster you will see a return.

  • Convertibles & Stock with No Dividends.  You are waiting until the company goes public or is acquired.  This can take a very long time. It took the early investors in Harmonix (the creators of Guitar Hero) over 10 years to earn a return.

  • Stock with Dividends.  This depends on the specific investment agreement.  Typically, dividends are a percentage of profits. Therefore, the amount of time to see a return depends on how profitable the business is.

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