Patent ID: 8392307

Claim:
A method of providing funding for a company by syndicating a performance based security, the method comprising: modeling, using a computer, an estimated future operating cash flow value of the company; calculating, using a computer, a plurality of estimated future payouts based on the estimated future operating cash flow value of the company, each of the estimated payouts comprising: a baseline percentage of a principal amount if the future operating cash flow value is less than a floor amount, a maximum percentage of the principal amount if the future operating cash flow value is greater than a ceiling amount; and the baseline percentage of the principal amount plus a portion of the principal pro-rated according to the future operating cash flow value, if the future operating cash flow value is greater than the floor amount and less than the ceiling amount; calculating a present value of the plurality of estimated future payouts; and offering for sale a financial instrument based on the present value of the plurality of estimated future payouts.