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There is no timeframe on repayment of the loan. If founders want to keep reinvesting in the business that is fantastic. If they want to start taking more out fo
by bryc3 12y ago
There is no timeframe on repayment of the loan. If founders want to keep reinvesting in the business that is fantastic. If they want to start taking more out for themselves, that's when the distributions kick in. We hope that helps keep our incentives aligned.
- loceng 12y agoI think a misconception I am seeing people have, please correct me if I'm wrong, is with the understanding of distributions. You could re-invest 100% of what isn't going to founder salaries into the business, however if $100k is going towards founders then they receive $20k and Indie.vc receives $80k. Is that correct?
- solve 12y agoI see, thank you for clarifying. Somehow, I think the word "cash flow" gave me the impression that this was based on revenues, not distributions. Can you clarify what distributions means? So if the founders pay themselves a salary, that counts as distributions?
- glenngillen 12y agoOnly if the founder salary has increased by more than 50% since the start. See this response from Bryce with more detail: https://news.ycombinator.com/item?id=9139507 https://news.ycombinator.com/item?id=9139507