3 ms·

And personal guarantees and a lein on your house.

• ilamont 8y ago
  There are always strings attached when money changes hands, whether it's a bank or an alternative funding vehicle such as Earnest Capital. In its post, this statement stood out: All of the terms or figures are subject to change. Any specific figures would change significantly depending on the stage of the business, founding team and current levels of traction. Phrases like "terms subject to change" + subjective, easily discounted appraisals of things like "team" and "traction" are the types of venture BS that many bootstrappers want to get away from. Moreover, the post says they "primarily" want to extract dividends from the companies they invest in. What happens when those dividends dry up, or the company needs to make a choice between paying out dividends and using that money for some other important purpose? Salaries get docked?
  • tylertringas 8y ago
    Our structure is 100% aligned with the founder. If they founder(s) take profits, we get a share of that. If it makes more sense to reinvest profits or if there currently aren't profits, we don't get paid and we do our best to help the founders in any way we can. We definitely would not be trying to go after salaries to increase profits (nor would we even have any mechanism to do so... no board seat or equity control).