– this is exciting

So 2015 is off to a good start. I’ve rambled about revenue-based financing and other alternative models to fund tech companies a couple of times on this blog. And today, I saw something called by Bryce Roberts and the OATV team which is an interesting first step.  An alternate model to fund tech companies:

Bootstrappers with ambitions that exceed their cash flow.
Creatives with side projects they’re funding through client work.
Founders that don’t want to sell out their users to attract investors or advertisers.

Traditionally, technology investors only get their money out when you sell out (another term for this is a “Liquidity Event”). An investment from IdVC doesn’t preclude you from selling, but in the event you stay independent, our investment will get paid out as distributions from cashflow over time. This is fairly common in most other industries, but we have not seen it applied to technology companies until now.

Our investment is also structured as a line of equity; meaning, you only draw down the amount of capital you need, when you need it.

Details are scarce right now and this is for earlier stage tech companies it seems.  But it’s good to see this stuff coming.

One Thought on “ – this is exciting

  1. Pingback: No Risk, All Reward - The Startup Career Path

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