Actually this isn't a bad model: If you use software to easily create syndicates, you could raise a few months, assuming you keep your burn at two guys in a garage.
Kickstarter meets angel.co
If you put money in the company, it's completely through standardized docs that say it is uncapped convertible debt.
So you can create rolling syndicates of people that each contribute $50 or $250 or $1250 dollars.
This is done publicly, and is a way for angels to signal mild interest in a company in a public way.
Conversion should not be triggered by an investment under $50K, to prevent the argument that the early investors bought equity at the same price as YC.
It makes the market for equity in startups a little more efficient.
Aren't we supposed to make a great and compelling product that makes each one of our customers pay us this $37. Why do we even need to do do all this rolling syndicated thingy?
Investment from anybody is a pain that is worth taking if you are getting a large amount in return. For the smaller amounts, working with customers is better on the pain-return axis.
Kickstarter meets angel.co
If you put money in the company, it's completely through standardized docs that say it is uncapped convertible debt.
So you can create rolling syndicates of people that each contribute $50 or $250 or $1250 dollars.
This is done publicly, and is a way for angels to signal mild interest in a company in a public way.
Conversion should not be triggered by an investment under $50K, to prevent the argument that the early investors bought equity at the same price as YC.
It makes the market for equity in startups a little more efficient.