Hi ,
I hope you are doing well and finding the right balance of information, action, impact, and rest in these crazy times.
As a subscriber, you already know that one of the ideas that has preoccupied my work life for the past year or so is that business finance can be regenerative, abundant, and sustainable, if we want it to be.
I think I cracked it (well, for my needs). Months of research, reading, interviewing, learning, and synthesizing and I think I've found a model that meets lots of needs in elegant ways.
Want to hear me talk about it? Click the thumbnail! Want to read about it? Keep going!
Traditional Values, Unconventional Terms 🦬 💰 🦬 - Watch Video
The short version: I'm raising $300K through a hybrid model that's basically angel investing, but not exactly.
Here's what makes it different:
Cash AND in-kind contributions count. For example, I'm working with an integration lead (Libby is a Circle Keeper) who's providing six months of services. Their retail value? That counts as a cash investment, just like writing a check would. It's money I don't have to raise, so it gets treated the same way.
Profit sharing first, then equity. Investors get disbursements from profits—at my discretion. (This part I lifted directly from SparkToro, because they figured out something smart.) They're not getting voting shares or decision-making power, but they do get quarterly statements showing revenue, profit, and plans for the next quarter. Full transparency, no control dilution.
Business growth comes before investor repayment. Everyone's protected a little bit—nobody can be 100% protected when you're building infrastructure for an extra-legal industry. But here's how the safety nets work:
- I get a salary (starting at 50%) plus healthcare so I can focus full-time without leveraging my entire life
- My salary is capped and I don't get ANY profit distributions until investors are fully repaid
- Profits either get reinvested or distributed—the business grows sustainably instead of chasing exponential growth for an exit
The repayment structure: Target is 3x by end of year 5, then every $10K invested converts to 1% equity in the LLC.
Why this matters:
- Non-accredited investors can participate
- No tax implications for investors until there's enough $$ to make it worthwhile
- No IPO or sale required for investors to benefit
- No pressure for wild growth just to satisfy exit expectations
- Rooted in ethical, sustainable, meaningful business growth
This model is a mashup of everything I've learned from generous people (probably including you, if you're reading this). It's based mostly on SparkToro's open-sourced documents with a few tweaks for our specific situation.
So here's where we are: I'm fundraising. If you're getting this, you're someone I trust and respect enough to ask: interested in participating?
Poke holes in it. Ask questions. Tell me what's wrong. I have a term sheet—reply to this email and I'll send it over. What I really need right now is a lawyer to review it, but I think I got it right.
I'm deeply convinced of the potential here. This work is desperately needed, and I think we've found a sweet spot between purpose and profit in a growing market.
Want the full story? Hit reply and I'll send you the deck and the terms sheet.
Hope you're well, safe, and warm.
Lindsay
P.S. I believe with everything in me that the terror that is currently being inflicted on the residents of the Twin Cities and beyond could be prevented and will be overcome by the same thing: Authentic human connection. In the meantime, I have deep gratitude for the commitment and work of the local community here and stand in solidarity with all of those who are affected.
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