3X-in-10™ Calculators

In this section of the WIIN learning platform, you will find our 3X-in-10™ Calculators. These three calculators are used by women and HeForShe investors, business owners, and entrepreneurs.

Use the first calculator to assess viability and profitability of revenue sharing investment offers (whether 3X-in-10™ or not). The 3X-in-10™ Calculator assumes a model enterprise is seeking to raise $250,000 in growth capital and is willing to share 5% of its top-line revenue with women and HeForShe investors over a ten-year period.

The second calculator focuses on the annual yield an individual investor potentially could receive from investing in the 3X-in-10™ offer of the first calculator. The third calculator makes the assumption you have decided to take all revenue sharing loan repayments and reinvest them in other 3X-in-10™ Offers and create a ten-year 3X-in-10™ Revenue Sharing Portfolio.

Be sure to click on the “return” buttons and hover over each section of these calculators. There is more information in the “pop-up boxes” about our 3X-in-10™ Revenue Sharing Model.

What If You Made this
3X-in-10™ Offer to
Women and HeForShe Investors?Use this calculator to assess the potential return of a revenue sharing investment offer. It's built on a financial model we call the 3X-in-10™ Revenue Sharing Offer (or 3X-in-10™ for short). This is investor code for "triple your investment in ten years." Click on the Potential Investor Return button to see results.

Four numbers are needed to create or evaluate a 3X-in-10™ Revenue Sharing Offer. This first input cell asks for the starting revenue base of the enterprise seeking to raise growth capital. Typically, this is the net revenue forecasted for end of the current fiscal year. In our 3X-in-10™ Model, we use an enterprise with a revenue base of $1 million. Go ahead and enter the starting revenue base for your enterprise.

The second input cell asks for the amount of flexible revenue-based growth capital a business or social enterprise is aiming to raise on a crowdfund investment platform. Typically, 25% of the revenue base is considered a "safe" amount. In our model, the enterprise is seeking to raise $250,000. Go ahead and enter the amount of growth capital your enterprise is aiming to raise.

The third input cell asks for the average annual revenue growth rate of the enterprise for the next ten years. In our model, the enterprise forecasts a realistic and sustainable 10% average annual growth rate. Go ahead and enter the growth rate for your business or social enterprise. You may need to assume a percentage if this number is not provided.

The fourth input cell asks for the percentage of top-line revenue to be shared with investors over the ten-year investment period. Typically, the range is between 1–10%. In our model, the enterprise has chosen 5%. Their 3X-in-10™ Revenue Sharing Promissory Note would provide pro-rated payments to investors equal to 5% of revenue generated for the quarter. Go ahead and enter the revenue sharing percentage being offered by your enterprise.

Potential Investor
Return

Total Cash
Returned
The first output cell calculates the total amount of cash investors potentially could receive from this 3X-in-10™ Revenue Sharing investment. This number is calculated by multiplying the growth capital amount by the investment multiple.

Net Present Value of InvestmentThe second output cell calculates the Net Present Value (or NPV) of this 3X-in-10™ Offer. NPV is the difference between the present value of cash inflows and outflows. It takes the "time value of money" into account and tells investors if future cash flows are adequate to pay back the revenue sharing agreement. Our NPV formula uses a "hurdle rate" of 8.7%. This is the return of a portfolio of ten equity investments (discussed in Key Finding #5 of the Gender Wealth Strategy learning program). A NPV greater than zero means this benchmark has been met. Check the IRR to confirm.

10-Year Average Annual Return or IRRThe third output cell calculates the Internal Rate of Return (or IRR) of this 3X-in-10™ Offer. IRR is the discount rate that makes the net present value of all investment cash flows zero. Investors use IRR to judge the attractiveness of different investment options. Investors typically favor options with the highest IRR. In our 3X-in-10™ Offer, the potential IRR (average annual return) is 23.3%.

Investment
Multiple
XThe fourth output cell confirms the investment multiple of a revenue sharing offer. Use this number to confirm or evaluate the viability of the revenue sharing offer you're creating or evaluating.

Total Growth Capital Investment250,000

Enter Investment Multiple
and Investment Period:

The investment multiple in our model defaults to 3.0. However, you can change this if you're evaluating an offer that is not a 3X-in-10™ (e.g., 1.5X in 5, 2X, etc.)

The investment period in our model defaults to 10 years. However, you can change this if you're evaluating an offer that is not a 3X-in-10™ (e.g., 1.5X in 5, 2X, etc.). Note that our model ends after ten years.

Desired Investment Amount750000


What If You Invested in
the Above 3X-in-10™
Revenue Sharing Offer?This calculator focuses on the yearly return (or annual yield) you potentially could receive from the 3X-in-10™ Offer in the first calculator. Note the cash return and annual yield are not risk-adjusted nor do they take into account the "time value of money." This calculator will help you see how fast it takes to earn back your invested capital (i.e., time to 1X).

This input cell asks you to enter the amount of money you would like to invest in the 3X-in-10™ Offer in the first calculator. This is a one-time investment where you would receive quarterly revenue sharing repayments from the business or social enterprise you've chosen to fund and support.

Your Potential Return

Year Cash Return Annual Yield
1
2
3
4
5
6
7
8
9
10

Total Cash
Returned
15,000This is the total of all cash returned in years 1–10. You can easily check whether the total is 3X your initial capital investment.


What If You Reinvested
All of Your Repayments
in Other 3X-in-10™ Offers?This calculator assumes you've taken all revenue sharing repayments and reinvested them in other high-quality 3X-in-10™ Offers with the same parameters as the first calculator. This calculator provides the potential return for a risk-adjusted portfolio of revenue sharing investments. We used Bureau of Labor Statistics (BLS) business failure rates from 1994–2015 to create a conservative estimate of the potential results if you reinvest all of your repayments in other high-quality 3X-in-10™ Offers.

This cell is based on the amount of capital investment you entered in the second calculator.

Your Potential
Portfolio Return

Year Cash Return Annual Yield
1
2
3
4
5
6
7
8
9
10

Total Cash
Returned
23,185This is the total of all cash that potentially could be returned in years 1–10 as a result of your 3X-in-10™ Revenue Sharing Portfolio. Divide the Total Cash Returned by Your Initial Investment to see the potential Investment Multiple of your risk-adjusted 3X-in-10™ Portfolio. In our example, the Potential Investment Multiple is 4.6X. This result is two times the average return of a portfolio of ten equity investments (reference Key Finding #5 in the Gender Wealth Strategy learning program). This result also translates into a potential 30.1% IRR (average annual return)!

Published by Mark Livingston

Mark Livingston is President of The Social Impact Foundation and creator/author of the WIIN Learning Platform. He is also a Certified Pickleball Coach and Teaching Professional at Coach Mark LLC (www.coach-mark.com).

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