Your Future Earnings.
Your Capital Today.
FutureShare Legal provides sophisticated legal counsel to individuals raising capital and investors deploying it — representing both sides of the table in ISAs, SAFEs, and custom capital structures that are fair, enforceable, and built to last.
What Is a Personal Income Share Agreement?
A Personal Income Share Agreement (ISA) is a contract in which an individual raises capital today by agreeing to share a fixed percentage of their future earned income with an investor or group of investors over a defined period.
Unlike a loan, there is no fixed monthly payment and no compounding interest. Payments are tied directly to the individual's income — rising when they earn more, pausing when they earn less. The arrangement concludes when the agreed period ends or a payment cap is reached.
Personal ISAs have enabled ambitious individuals — entrepreneurs, creators, athletes, executives — to monetize their human capital and fund ventures, education, or life transitions without giving up equity in a business or taking on traditional debt.
Because these agreements are fundamentally contractual in nature, precise legal drafting is critical to protect both the individual and the investor.
Income-Linked Payments
Payments are a fixed percentage of the individual's earned income — so they scale proportionally with success and pause during low-income periods.
Defined Term & Cap
Agreements specify a maximum repayment period and a total payment cap — giving both parties certainty about the outer bounds of the arrangement.
No Compound Interest
Unlike debt, ISAs do not accrue interest. Investors earn a return only if the individual earns income, aligning both parties' incentives.
Privately Negotiated
Terms are fully negotiable — percentage, floor income threshold, cap, and term length can all be customized to fit the individual's situation and goals.
SAFE Agreements for Startups
A SAFE (Simple Agreement for Future Equity) is a startup financing instrument created by Y Combinator. It lets an investor put money into a company today in exchange for the right to receive equity later — when a triggering event occurs. Think of it as a bet on a company's future, not a loan against its present.
How a SAFE Works
The core idea is simple: "I invest today. I get stock later — when you raise a priced round or exit." No equity changes hands at signing. No maturity date. No interest. The SAFE sits on the cap table as a promise, waiting for a triggering event to convert it into real shares.
SAFEs converted into equity when one of three things happens: the company closes a priced equity financing round, a liquidity event (sale or IPO) occurs, or — in some structures — upon dissolution of the company.
Because there's no loan to repay and no valuation to negotiate upfront, founders love SAFEs for early-stage rounds. They're faster, cheaper, and cleaner than priced equity rounds. For investors, a well-drafted SAFE with a valuation cap provides meaningful downside protection and upside participation.
⚙️ Core Mechanics
- → No equity issued at signing — investor gets a right, not shares
- → No maturity date — SAFE doesn't expire or demand repayment
- → No interest accrues on the invested amount
- → Converts at a priced round, liquidity event, or dissolution
- → Investor gets more shares the lower the conversion valuation
- → Founder retains full control until a priced round closes
📉 Valuation Cap
The maximum company valuation at which the SAFE converts into equity. If the company's Series A is priced above the cap, the SAFE investor converts at the lower capped valuation — meaning they receive more shares than new investors paying the higher price. This is the investor's primary economic protection.
🏷️ Discount Rate
An additional benefit that lets the SAFE investor purchase shares at a percentage discount to whatever price new investors pay at conversion. A 20% discount means if Series A shares are $1.00, the SAFE investor pays $0.80. Caps and discounts can be used together or separately.
🔄 MFN Clause
A "Most Favored Nation" provision that allows an early SAFE investor to upgrade their terms to match any better terms offered to later SAFE investors before a priced round closes. Protects the first check writers from being disadvantaged by later investors who negotiate tighter terms.
📊 Example: How a SAFE Converts
What a SAFE Is Not
- ✗ Not a loan — no repayment obligation, no maturity date
- ✗ Not revenue-based — not tied to company earnings
- ✗ Not tied to the founder's personal income
- ✗ Investors do not get paid unless equity value materializes
- ✗ Not a guarantee — if the company fails, the SAFE is worthless
Which Instrument Is Right for You?
All three instruments we draft serve different needs. Here's how they compare across key dimensions to help you identify the right structure before your consultation.
| Feature | Personal ISA | SAFE Agreement | Custom Structure |
|---|---|---|---|
| What the investor receives | % of individual's personal income | Equity in a company at conversion | Negotiated hybrid |
| Subject of the deal | Individual's future earnings | Startup company equity | Flexible |
| Loan / debt instrument | No | No | Typically No |
| Interest accrues | No | No | Varies |
| Maturity date | Term-based (e.g. 5–10 yrs) | None | Negotiated |
| Income floor / salary floor | Yes — payments pause | N/A | Optional |
| Valuation cap | N/A | Yes — standard term | Optional |
| Payment cap | Yes — protects individual | N/A | Optional |
| Investor upside linked to | Individual's career success | Company's growth & exit | Negotiated |
| Best for | Individuals raising personal capital | Startups raising pre-seed / seed | Complex or multi-party deals |
| Our flat fee | Flat Fee | Flat Fee | Flat Fee+ |
Full-Spectrum Legal Counsel
Whether you are raising capital or providing it, we represent you. We counsel individuals seeking to monetize their future earnings, founders raising early-stage capital, and investors deploying funds via ISAs, SAFEs, and custom structures — full-spectrum legal support for both sides of every deal.
Individuals using ISAs or SAFEs to fund ventures, education, career transitions, or personal goals — we draft agreements that protect your income, cap your obligations, and give you the capital flexibility you need.
Investors writing checks into ISAs or SAFEs — we structure agreements that clearly define your return mechanics, enforce income reporting obligations, and protect your investment with well-drafted default and dispute provisions.
ISA Drafting & Structuring
Custom-drafted income share agreements tailored to your specific situation, goals, and risk tolerance. We ensure every term is precise, enforceable, and clearly understood by all parties.
Agreement Review
Already have a draft? We provide thorough independent review of proposed ISA terms, identifying potential risks, ambiguities, and unfavorable provisions before you sign.
Negotiation Support
We advocate for your interests at the negotiating table, helping individuals and investors reach terms that are balanced, sustainable, and legally sound.
Investor-Side Structuring
For investors building ISA portfolios or writing their first check, we help structure agreements, disclosure documents, and compliance frameworks appropriate to your investment strategy.
Modification & Novation
Circumstances change. We help parties amend, restructure, or novate existing income share agreements as careers evolve, goals shift, or terms need updating.
Dispute Resolution
Should a disagreement arise over payment calculations, income reporting, or compliance with terms, we provide legal counsel toward resolution, mediation, or arbitration.
From Consultation to Signed Agreement
Free Consultation
We discuss your situation, goals, and whether a personal ISA is the right instrument for your needs.
Term Scoping
Together we outline key terms: the income share percentage, payment floor, cap, and duration of the agreement.
Drafting & Review
We draft a complete, custom agreement and coordinate review by all parties and their counsel.
Execution & Closing
Final signatures, funding, and any recording or notarization needed — your deal closes cleanly.
Who Uses These Instruments?
These aren't hypotheticals. These are the situations that bring people to us — real crossroads where the right legal structure can change the entire trajectory of what comes next.
The Founder Who Needs Runway Before the Idea Has Traction
"I have a concept I believe in completely. I need 12 months to build it — but I can't build it while working full-time, and I can't quit without money in the bank."
This is one of the most common and most solvable problems in early-stage entrepreneurship. A founder has conviction but no proof — which means they can't raise a priced equity round yet, and a bank won't lend against an idea. Traditional options are limited: drain savings, max out credit cards, or ask friends and family awkwardly.
A Personal ISA offers a fourth path. The founder raises capital now — enough to cover living expenses and early startup costs — by agreeing to share a small percentage of their future personal income with an investor. No equity in the company changes hands. The investor bets on the person, not the pitch deck. The founder retains full ownership of the company they're about to build.
Once the startup gains traction and is ready for institutional investment, a SAFE Agreement can layer on top — allowing early believers to participate in the company's equity upside without requiring a full priced round at a stage when valuation is still speculative.
- ISA income definition: does it include founder salary, distributions, or both?
- ISA payment floor: payments pause if the founder draws no salary in early years
- SAFE valuation cap: set at a level that fairly rewards early risk-taking
- Non-interference clause: ISA cannot restrict how the founder runs the company
- Coordination between ISA and SAFE to avoid conflicting obligations
The Graduate Student Who Refuses to Graduate Into Debt
"I'm going back to school for a professional degree that will genuinely change my earning potential. But I'm not willing to sign up for $150,000 in student loans at 8% interest."
Federal and private student loans are the default path — but they come with fixed monthly payments that begin regardless of whether a graduate lands a job, how much they earn, or what detours life throws at them. For graduate students entering high-earning fields like medicine, law, engineering, finance, or technology, there is an alternative worth exploring: a Personal Income Share Agreement.
Under an ISA, a student or recent graduate raises funds from a private investor — a family member with capital to deploy, a mentor, or an individual angel — in exchange for a percentage of future income over a defined period. Payments are income-linked, meaning they scale with actual earnings. If income drops — due to illness, parental leave, or career transition — payments pause. There's no interest compounding in the background. There's a cap on total payments. And the deal ends when the term expires, regardless of how much has been paid.
For students who have a clear earning trajectory and access to even one investor who believes in their potential, a well-drafted ISA can be a more humane and financially aligned alternative to traditional student debt.
- Income floor: payments don't begin until earnings exceed a defined threshold
- Payment cap: total payments capped at a multiple of the original amount (e.g. 1.5×)
- Term length: agreement expires after a set number of years regardless of total paid
- Income definition: gross vs. net, what counts as "earned income"
- Deferral provisions: parental leave, disability, continued education
- Investor relationship: disclosures needed if investor is a family member
The Professional Who Needs the Freedom to Reinvent Themselves
"I've spent 12 years in a career that no longer fits. I know what I want to do next — but the transition will take 18 months and I can't do it while keeping the lights on."
Career reinvention is expensive. Whether someone is leaving finance to pursue medicine, leaving corporate law to launch a nonprofit, or stepping out of tech to retrain as a therapist, the math is usually the same: the transition period has real costs — living expenses, retraining programs, licensing fees, relocation — and zero income.
A Personal ISA is purpose-built for this moment. The individual raises a defined amount from a private investor — enough to cover the sabbatical period and transition costs — in exchange for a share of their future income once they've landed in the new career. The investor bets on the person's trajectory, not their current employer. Payments don't begin until income does, and they're tied to what the person actually earns.
Unlike a personal loan, the ISA doesn't create the crushing pressure of fixed monthly payments during the period when the person is most financially vulnerable. Unlike selling equity in a business, it doesn't require having a business to sell. It's a bet on human capital — and for people with a credible track record and a clear destination, it's a bet that the right investor will often take.
- Sabbatical deferral: payments explicitly deferred during the transition period
- Income floor: set at a level matching the new career's entry-level earnings
- Career change clause: how does the ISA define "earned income" across sectors?
- Term design: long enough to be fair to the investor, short enough to be fair to the individual
- Buyout provision: individual can pay off the ISA early at a negotiated price if new career exceeds expectations
Why Choose FutureShare Legal
Specialized Focus
We concentrate exclusively on income share and human capital agreements — giving you counsel with genuine depth in this specific and rapidly evolving area of contract law.
California-Licensed Counsel
Our attorney is licensed in California and brings comprehensive contract law expertise to every engagement, regardless of where clients are located.
Flat-Fee Transparency
We quote flat fees for standard services so you know exactly what legal representation will cost before we begin — no billing surprises.
Both-Sides Experience
We've represented individuals raising capital and investors deploying it — giving us a holistic view of how to structure deals that work over the long term.
Efficient, Remote-First Practice
Fully remote and streamlined — consultations, document review, and signings handled efficiently without unnecessary delays or overhead costs passed on to clients.
Simple, Flat-Fee Pricing
No hourly billing surprises. You know exactly what you'll pay before we begin — and you can choose how to pay it.
SAFE Agreement
Simple Agreement for Future Equity — standard or modified structure for investors and founders.
- ✓ Custom SAFE drafting for your deal
- ✓ Investor & founder-side terms
- ✓ Cap table & conversion provisions
- ✓ One round of revision included
- ✓ Execution guidance & closing support
Personal ISA
Full income share agreement for individuals raising capital on their future earnings.
- ✓ Custom ISA drafting for your situation
- ✓ Income floor, cap & term structuring
- ✓ Payment calculation methodology
- ✓ Dispute & default provisions
- ✓ One round of revision included
- ✓ Execution guidance & closing support
Custom Structure
Hybrid, multi-party, or novel human capital instruments tailored to complex arrangements.
- ✓ SAFE + ISA hybrid structures
- ✓ Multi-investor ISA portfolios
- ✓ Entity & partnership arrangements
- ✓ Custom income definitions & carve-outs
- ✓ Quoted after initial consultation
How Capital Moves in an ISA Transaction
Frequently Asked Questions
Schedule Your Free Consultation
Let's discuss your situation
Every personal ISA situation is unique. We offer a complimentary 30-minute consultation to understand your goals, answer your questions, and determine how we can help.
Consultations are available via video call or phone, and typically within 3–5 business days of inquiry.
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