Revenue Participation: The Concept

In a Revenue Participation financing a business offers the investors a percentage of the business’s future gross revenues in exchange for a capital investment.

In its simplest form, the business offers to give the investors y% of future gross revenues until such time as Investor has been paid “x” times the amount of capital invested.

So, for example, in exchange for $100,000 of capital, the business could agree to pay the investors 20% of future gross revenues until the business has paid the investors 3X the $100,000 capital investment, or $300,000.
 
Source: https://www.natlawreview.com/article/introduction-to-revenue-participation-financing