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How to fund a studio (or any high risk startup for that matter) is an interesting question. I've been thinking about alternatives to VC/angel funding or taking
by enos_feedler 6y ago
How to fund a studio (or any high risk startup for that matter) is an interesting question. I've been thinking about alternatives to VC/angel funding or taking on consulting projects as mentioned in the article. The issue with consulting work is it takes away the one precious resource you need to grow your high risk thing: time.
I am thinking about funding my own startup using a model where I lend my startup personal capital with no interest and the startup uses that as an investment/trading vehicle to earn income and trading profits. My theory is that if a person is a capable visionary founder (sees the future, understands consumer trends, whats missing, etc) and has a solid plan for how to enter the market with a new product in the next 6-12 months, they probably understand the product tech market in that time frame as well. The "thinking time" could be shared between investing and building product. The actual work time goes completely to the startup, since buying and selling securities just takes clicks. this could fund a payroll for a founder for years while they build, without having to give time to an employer or consulting client. Of course, this requires lots of upfront capital (~100k-1M). But you could give that capital back in 2-3 years. the startup just borrows it.
A scaled up version of this model could be an endowment fund at a university. However this is a much more aggressive and smaller version of that.
Curious what people think of this before I dive in :)