HACKER Q&A
📣 unsurecofounder

Has anyone leveraged revenue share investing for their seed round?


Hey HN,

I've been working on a side project and think that I may have come across a really good idea for a product. I estimate that with ~8 months of full-time work I could release it for initial users. Unfortunately, I am not financially stable enough to afford to go that long without income.

I know that this is traditionally where startups turn to FF&F for seed funding in exchange for equity. However, I am uninterested in the hyper-growth that the VC money raising cycle requires.

I've heard quite a bit about revenue share investing (e.g. 5X a $50k raise paid from 20% of profits over 48 months) and was wondering if anyone has experience with this particular investing vehicle for the FF&F seed money round. It seems like a good balance between not having enough for a traditional bank loan and being uninterested in selling equity. Any literature/links would be greatly appreciated as I'm having trouble sourcing any for this particular topic.

Thank you for your time!


  👤 dinkleberg Accepted Answer ✓
I can’t answer your question directly since I’ve never done that.

But is there any way you can limit the scope for an MVP you can knock out in a month or two of evenings and weekends?

If you can create something that addresses the problem (maybe only a portion of it) that is valuable enough that people are willing to use it, you’ll have a much easier time getting funding.


👤 altdataseller
TinySeed does something similar. Check them out