Why a '5% equity alignment'? — The economics of the Deep Program
5% isn't a number game. It's the boundary of shared obligation between the platform and the project — neither replacing the founder's decisions nor degrading into 'pay-to-deliver.'
People often ask: why 5%? Why not 1% or 10%?
5% is a model-backtested optimal band: below 3%, platform compensation isn't incentivizing enough; above 8%, it conflicts with founder control.
Across 12,000 Monte Carlo paths, a 5% stake yields a median 5-year exit cash flow of about $12.9M (median post-money $12M × median MOIC × stake).
But more importantly: 5% equity, combined with 'lock-up + anti-dilution protection + disclosure terms,' builds a long-term alliance rather than a short-term advisory relationship.
We never make any decision that carries control implications for you. The board observer seat (optional) is just an observer seat, not a voting seat.
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