Re:Build Your Idea for Free
by theturtletalks on Thursday August 01, 2019 @03:25PM
(#20587349)
Wait so it’s free, but they take equity? How does that make sense?
Re:Build Your Idea for Free
by nestorherre on Thursday August 01, 2019 @05:12PM
(#20588414)
The free part is about BUILDING the idea, so you don't have to pay anybody to have it done (basically 0 risk and effort). If the idea works, they will get equity, if it doesn't, you didn't lose anything.
It's a mix between a tech cofounder and an investor, and for me, it makes a lot of sense.
Think of free as meaning a "free pass," you get to make a business without failure meaning debt that will follow you around. If the business fails, you walk away with the only thing lost being time
Fill out the form and let us know all about your idea. We will then review your application and will reach out to schedule a call.
First, your idea must be a software business. Secondly, your business model must generate revenue through means other than advertising; we love marketplaces and SaaS business models.
We’ll be your co-founder and will take equity in the business.
Those are terrible terms.
If they made this offer for custom electronics or plastic parts or something, and they had a factory, it would make more sense. The manufacturer makes money by making the thing, so the business model is that the founder owns the design and the manufacturer bangs out parts for sale. If they were offering free tooling and an initial production run in exchange for exclusive manufacturing rights for N years, that would be an OK deal.