This is a post about how to become an investor—someone with the authority to write checks— at Earnest Capital. We like to build in public, so there are unfinished parts of this roadmap. I’m hoping smart folks will weigh in and help us figure them out. The on-ramps to investing (or lack thereof) There are […]
A fund structure built for founders backing founders tl;dr we’re updating how commitments are made to Earnest funds and making them a quarterly subscription product. To get more details subscribe here. But since transparent mega posts are how we do things at Earnest, I want to walk through the thinking as well. Building Earnest has been […]
Yesterday I tweeted: To be clear we have invested in companies that don’t meet all or any of these criteria, and we’ve also not been able to invest in companies that met it perfectly. But I wanted to give founders a wheelhouse of what we’re looking for. But several folks asked the question (I’m summarizing): […]
Introduction What follows is a public draft of the investment memo for Earnest Capital’s second fund with as few redactions as possible. This is an extension of our experiment in radical transparency, beginning with our open-source process designing our funding for bootstrappers investment strategy and Shared Earnings Agreement investment structure.
Request for Startups is a series of posts outlining a few specific theses that we feel are likely to hold good business opportunities for founders that are aligned with our goals. It’s a list of ideas, some less polished than others, and isn’t prescriptive on what problems should be solved or what products should be built. […]
For the last six months, I’ve spoken to 100s of world-class founders, investors, and operators. One question I have asked them all is to tell me their thoughts on mentorship: what worked and what didn’t from either side of the table. Not all of them had a strong mentor relationship in their journey, but all […]
Six weeks ago Earnest Capital soft-launched by posing the question: could we build a funding model for bootstrappers? We had been working for months on the technical details of an early-stage investment structure that aligns an investor with a founder who wants to build a sustainable, profitable, calm company and doesn’t want to raise traditional venture […]
We received a ton of good hard questions about the Earnest Shared Earnings Agreement, particularly around “how do the numbers actually work?” Well, we’re building a fancy web calculator for it, but I thought I would just pop the hood on the Google Spreadsheet (click here to access it directly) we’ll use for it and let […]
Huge thank you to Joe Wallin, Kevin McArdle, and Rich Thornett for their help with this post and project. This is a post about the technical decisions we’ve made on a new “funding structure for bootstrappers” and a call for feedback from the founder community. But first, we need to talk about The Problem.