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I own a bootstrapped start-up that seems to fit their profile, but their numbers seem way off to me. They take 80% of all distributions until they're paid back
by claar 12y ago
I own a bootstrapped start-up that seems to fit their profile, but their numbers seem way off to me.
They take 80% of all distributions until they're paid back 2X, then 20% until they're paid back 5X.
They're offering $100k to 8 start-ups; in order to hire a few employees with decent runway, $500k seems like the minimum useful raise.
I guess we're just too late-stage for this, which is funny, because from my research we're too early stage for most VCs.
The idea of taking 100K today so we can pay 500K tomorrow just isn't very appealing.
- DevX101 12y agoIf you're making more than $200k in revenue check out revenue financing: http://www.lightercapital.com/ http://www.lightercapital.com/ Seems like it might be a better deal than this. But I'm a big fan of alternative models of financing than defaulting to VC or bootstrap everytime. There's room in the middle somewhere.
- claar 12y agoInteresting, thanks for the link.
- bryc3 12y agoIt certainly isn't for everyone. Perhaps it can grow to larger companies over time, but we wanted constraints on the initial experiment. People who are applying seem to be equally split between those looking for cash and those looking to be part of the peer group and programming we have planned for the year.
- loceng 12y agoI'd be happier if there was a way to pay back early, say to reduce end cost to 3x return, in the case that you bring in investment.