b'8. DECIDE HOW YOU WILL SPLIT MONEY WITH INVESTORSIf you are selling a portion of the ownership interests in your company to investors, you are selling investment contracts, which are securities. As an example, you might choose to sell 60% of the interests in your company in exchange for all of the capital needed to meet the companys objectives. The funds raised from investors are their capital contributions. The in-terests you sell to investors usually have voting rights, which may be lim-ited, and a right to a share of the companys profits.As the syndicator, you or your management team will retain ownership of the remaining interests. This is called carried interest. Carried inter-est is the percentage of profits that you receive as compensation for your sweat equity. For small business startups, you will typically reserve some percentage of the companys stock or shares for the founders and possibly employees. You will sell off percentages of ownership to venture capitalists or angel investors as funding is needed. Each round of funding may be called a series (Series A, B, C, D, and so on). The percentage ownership to be offered in different funding rounds will vary. DISTRIBUTABLE CASHPROFIT SHARINGAfter company operating expenses and loan payments are paid and re-serves are set aside, any cash left over from operations, refinance or sale of an asset is considered distributable cash or available cash. In a real estate 83'