We provide startup capital for your company. Instead of buying equity for ourselves, the equity we purchase goes directly into our angel fund. Upon a liquidity event (merger/acquisition or IPO), the equity we purchased becomes available as seed stage capital for new social enterprises. The twist? You are now our angel partner, with an equal voice in determining where to invest that money.
We invest $10,000 in Nina's Fair Trade Kale Company in exchange for 10% equity in her company.
In three years, Whole Foods purchases Nina's Fair Trade Kale Company for $1,000,000.
The fund's equity is worth $100,000.
Together with Nina, we invest the $100,000 into new enterprises under the same terms as the original agreement. The result? The equity that Nina initially sold to us is used to jointly fund the next generation of social entrepreneurs.