(I’m a mentor there and tiny (seed?) investor. This is by Rob Walling and Einar Vollset from the MicroConf crowd, which has been my business home away from home for something like ten years now.)
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Aren’t those terms just “slightly more expensive than YC and you also owe us dividends if you pay them?”
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Yes, but most people who take their offer won’t have had YC’s available due to business market size and founder’s desired trajectory reasons. They’ll happily fund you if you’re in Iowa and aspire to build a 7 figure business. YC (mostly) won’t.
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This seems great. Are they investing in international companies or USA only?
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In the FAQ for more detail, but they invest in US entities (which may or may not be companies physically located in the US).
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While not unicorns, I suspect the tinyseed model will still see returns dominated by rare outliers, similar to what you see with the traditional angel investor model
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I wonder how they deal with people gaming expense accounts to get around paying out dividends. I once lived 9 solid months (Singapore, UAE) 100% epensed to the company. And that was doing things completely above board - no gaming whatsoever.
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Hiring family members is the other big loophole I saw around the founder salary cap. At some point, having a magnifying glass + megaphone certainly reduces incentives. And that risk exists in traditional VC, too.
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Are you/were you ever a member of founder cafe?
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