While other VCs seek Unicorns, Indie.vc is all about cashflow

Post by glenngillen » Tue, Mar 03, 2015, 9:48 PM UTC

solve wrote: post #23

bryc3 wrote: post #13

Earlier quoted context omitted.

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.

I 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?

Only 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

Post by claar » Tue, Mar 10, 2015, 2:46 AM UTC

DevX101 wrote: post #11

claar wrote: post #5

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…

If you're making more than $200k in revenue check out revenue financing: 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.

Interesting, thanks for the link.

Re: While other VCs seek Unicorns, Indie.vc is all about cashflow

Re: While other VCs seek Unicorns, Indie.vc is all about cashflow