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This company is interesting. They call themselves a "venture development firm", as in they invest in your company in exchange for equity, like a VC. http://deve
by 100k 17y ago
This company is interesting. They call themselves a "venture development firm", as in they invest in your company in exchange for equity, like a VC. http://developertown.com http://developertown.com
What I'm wondering is, how do they eat? Even if this model did work, it'd be on a 10 year time horizon like VCs. Are the Limited Partners (programmers) all wealthy ex-startup people or something? Or do they also charge actual money for their services?
- mecloran 17y agoWe take a combination of cash & equity for building startup technology to a 1.0. We then help a startup find a team and transition a stable platform to the new team. Not a model for a startup founded by hackers who can easily build it themselves, but for folks with significant experience in a specific industry, a management team, and a great startup idea who are looking for a VP of engineering we can greatly reduce their risk. It also reduces the perceived risk for seed stage angel investors, enabling the companies to raise money more easily. And everyone who works at Developer Town gets a portfolio of startup equity instead of gambling for one big win with a single startup. We just started 1/1/10 - but already have a couple contracts in place even with a web-site that is still very V1. Feels like some real interest in the model out there.