Hi ,
Over the past year while I've been exploring traditional, conventional, and unconventional business finance models I've seen many different versions of debt.
I did a deep dive on a revenue-based investing model that did contribute a lot to my understanding of what investors are looking for and how those types of investments might be structured.
I've explored convertible notes and shared success models, which strike me as a very elegant solution to the tension I’ve long observed between a non-technical founder and their technical service provider.
As I’ve mentioned, I’ve also done a good bit of exploring around the ideas of regenerative economic models, indigenous traditions of resource management, and other ways of moving money around.
All of these inputs, mashed up with my own experience and values have led me to two very specific conclusions about the sort of finance model that I will use to build Buffalo Collective.
First: I do not want to build this thing using debt.
Lots of founders end up doing this, though I suspect the reason for that is primarily about the investors. I think impact investors (certainly much more than venture) especially struggle with a fear of failure. Philanthropy is for giving money away, impact investing is for making sure it comes back. So founders and entrepreneurs who are deeply committed to their idea and have enough traction to make their case take on some debt in order to build their dream.
I am also deeply committed to my idea, however I understand that even though it looks like a business, Buffalo Collective is first and foremost about connection. Our members provide value to and receive value from each other. The business provides value by creating the container for that exchange, and we receive value for that contribution. It is a regenerative system because the value we create for an individual translates to benefits for them and the people around them, who can also be invited to participate in the regenerative cycle.
It’s like a healthy ecosystem: balanced, regenerative, and easeful. When you think about systems that are naturally in balance, there is simply no model for debt. In fact, new-fangled regenerative economic models don’t allow for it, and neither do traditional indigenous practices. Instead, these models share reciprocity, balance, and circulation as their values.
In conventional capitalism, debt introduces all kinds of elements that run counter to those values.
❌ Debt creates a hierarchy of creditor over debtor
❌ Debt creates time pressure, prioritizing extraction over healthy growth
❌ Worst of all, debt perpetuates a scarcity mindset
Not that long ago, at the beginning of this newsletter in fact, I was fundraising for a debt fund. I’ll never forget a conversation I had with someone deeply aligned with the goals of my efforts. She told me, “This is not the right way. Debt is heavy. You are light.”
She’s right, I don’t want that weight to be the foundation of Buffalo Collective because it’s not aligned with the future I’m trying to build.
Why not bootstrap it then? Several folks have suggested that should be possible with this model. Scale slowly and thoughtfully and see how far you can get without paying for advertising. Funny thing about bootstrapping is that you still have to eat. And if you don’t have any income or savings, then this is actually just a shortcut to debt. I know because that’s how I built my first company. I took out a personal loan with my 2010 Toyota Matrix as collateral and those few thousand dollars was the “safety net” that my husband (at the time) and I would have to live off of if I couldn’t grow the business fast enough to support us both.
I know you probably don’t need me to tell you this, friend, but “bootstrapping” is bullshit. It’s bullshit because it’s really just about leveraging privilege and the recommendation to do it is borne out of a scarcity mindset. While it could be borne out of a founder’s desire to hoard the potential upside (I’ve witnessed that up close), it’s more likely a well-intentioned expression of fear that the business will not be able to find investors.
Which is why I feel so strongly that I want to build Buffalo Collective with values-aligned investors.
I want others to have the opportunity to share their resources, their wisdom, and their courage in support of a new and potentially powerful idea. If you’re not an entrepreneur or accredited investor, it’s easy to think that your impact will be limited to your job, your family, your philanthropy, and maybe your commitment to composting and public transportation. My intention is that the investment model I’m suggesting dramatically changes that view.
I see every investor as an energetic ally, putting their money where their values are and contributing to the creation of a new ecosystem of abundance. Each contribution is a powerful vote for our success and I want Buffalo Collective to benefit from many different sources of support. Like a parent who eagerly welcomes the support of aunties and uncles, friends, and neighbors, knowing that your child’s existence will be enriched because of the many people who love them.
Of course, the parent benefits too. Words of support and encouragement, free time, good advice, and an opportunity to prioritize self care–these are all things that founders need as much as new parents. Investments in Buffalo Collective will allow me to be the most strategic, thoughtful, and attentive leader any business could hope for, and I believe it deserves that.
So, whether you are many-times Angel investor or someone who has never played in the startup casino before, everyone has the same amount of experience with this particular model. All you really need to have is a belief that Buffalo Collective will succeed because of the benefit we can create for our members.
If you'd like to learn more about my plan for the business or the financing model, I'd love to share the details. Just hit reply and we'll sort something out!
Lindsay
P.S. If you haven't already, consider joining me in sending a strong message to the oligarchs that are enabling fascist activity in Minnesota and beyond. I strongly believe that full participation in the Resist and Unsubscribe effort is the single most effective thing a person in the United States can do to effect change. As much as you can participate without sacrificing your livelihood, I urge you to join me.
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