Assalamu'alaikkum A Muslim investor wants to invest in my company. And so I offered two options that I'm guessing is shariah-compliant: 1) Equity-based: investor gets preferred stock rather than common stock 2) Royalty-based: investor gets 3-5x his investment IF the company generates revenue and by paying 10% of the revenues back to the investor until he reaches 3x or 5x his investment His question (and mine) is whether both these financing options are shariah compliant. There are lots of material on the differences between preferred and common stock for private companies as well as royalty-based financing so I am not including the links. In our case, preferred stock holders get 3-5x their money out first before others get their cash.