Vocabulary for the New Risk Capital Landscape
In order for new risk capital structures to become common practice, we need to create a common way of discussing them.
Recent innovative financing structures from firms like TinySeed, Earnest, Indie VC, Womble Bond Dickson, or Purpose Ventures are designed to serve founder profiles left out of the equity paradigm. VC 2.0 widens the aperture of founders who can access risk capital.
However, for many founders and investors, parsing the similarities and differences between these funding structures can be overwhelming. These documents were drafted by brilliant lawyers, for brilliant lawyers.