b'How to Legally Raise Private MoneyCapital Contribution Any contribution to the capital of a company in cash, property, or ser-vices by an investor whenever made.Capital TransactionThe refinance, sale, or other disposition of the assets of a business.Carried Interest or CarryA method of compensating private equity and hedge fund managers for their work in providing a return on investment. Tax rules allow those managers to pay taxes on carried interest at the capital gains tax rate rath-er than the higher tax rate that normally applies to ordinary income.Compounded InterestInterest calculated on both the principal amount of a loan, and on accu-mulated interest on the loan.It is essentially interest on interest. CrowdfundingThe use of small amounts of funds from a large number of investors to finance a business, usually using social media and websites to bring investors together.Crowdfunding PlatformAn organization or website that brings together investors to pool funds.Crowdfunding PortalA mechanism on a website used by a crowdfunding platform to allow investors to directly make capital contributions to a securities offering.Debt InvestorA person or legal entity that loans money to a company, in return for re-ceiving interest as well as the return of the principal amount of the loan. The debt investor does not have an ownership interest in the company. Usually any involvement with the company will cease upon repayment of the loan by the company.DistributionsThe disbursement of cash or other property to the syndicator or the in-vestors, usually as stated and defined in the operating agreement or other governing document of a company.158'