The VCs pay for the team: > The companies pay SEV in common stock shares, the same held by the startups' rank-and-file employees, and SEV's team, in turn, get

The VCs pay for the team: > The companies pay SEV in common stock shares, the same held by the startups' rank-and-file employees, and SEV's team, in turn, get paid salaries by the firm and also receive part of the firm's carry like a traditional venture model. This is an exchange of money (to pay salaries, which is what a lot of VC money eventually gets used for) for equity. In other words, it's VC funding. It might look a little different than normal but that doesn't mean it's not funding.