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Thesis & Presentation

Has Anyone Built a Non-Traditional Fund Focused on Dividends and Liquidation Events Instead of Unicorn Startups?

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May 03, 2023
Hi everyone did anyone here built a fund that’s *not focused* on the traditional “venture-type returns” startups (100 - 10000x unicorn potential all from a sale / acquisition)? Based on our thesis we project we can achieve “venture returns” but from both dividends (in 80% of cases) and liquidation events (20% of cases). Or this is more of a private equity model? Thanks.
1 answer
Community Member
Accepted Answer
May 03, 2023
Venture Funds invest in speculative private company equity for returns from an exit. This is a proven model globally. Factoring, investing in profits or buying tokens is not venture capital. Trying to buy profits is not a proven model, and the the only examples that have worked are in gaming. The problem is that most talented entrepreneurs don't want to sell profits, so you are left trying to convenience lower caliber entrepreneurs to cut you in on their profits.

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