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 that I intend to use for Earnest’s second fund with as few redactions as possible. This is not a invitation to invest; we are currently investing in new companies out of our Fund 1 (now closed) and Earnest Fund 2 does not yet exist. […]
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.