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Ask HN: As a Founder, is this business model compelling?
I recently launched an independent sales agency specializing in early-stage startups. My model is adapted from my experience as an independent manufacturer's rep. for electric utility products used to transmit power from generation to end-users.In an overly simplistic summary, I am offering to work with companies under a performance-based contract that requires payment only when something is sold. It is backed by an agreement that is cancelable, with a 30-day written notice, if I don’t produce the agreed upon performance metrics. The macro trends that make me think this is an interesting approach in today’s environment are as follows:1. Higher interest rates and less availability to capital is making seed funding harder to secure 2. Investors are aligning with more efficient and cost-conscious startups 3. Runway and cashflow are more important than ever because funding rounds are taking longerSo, do you think this is an interesting approach or am I missing something? As an aside, I have been a long time reader of HN and I am so grateful for the interesting, intelligent, and thought provoking comments. Thank you in advance for any you may offer to my post! Comments URL: https://news.ycombinator.com/item?id=43584547 Points: 14 # Comments: 18
I recently launched an independent sales agency specializing in early-stage startups. My model is adapted from my experience as an independent manufacturer's rep. for electric utility products used to transmit power from generation to end-users.
In an overly simplistic summary, I am offering to work with companies under a performance-based contract that requires payment only when something is sold. It is backed by an agreement that is cancelable, with a 30-day written notice, if I don’t produce the agreed upon performance metrics. The macro trends that make me think this is an interesting approach in today’s environment are as follows:
1. Higher interest rates and less availability to capital is making seed funding harder to secure 2. Investors are aligning with more efficient and cost-conscious startups 3. Runway and cashflow are more important than ever because funding rounds are taking longer
So, do you think this is an interesting approach or am I missing something? As an aside, I have been a long time reader of HN and I am so grateful for the interesting, intelligent, and thought provoking comments. Thank you in advance for any you may offer to my post!
Comments URL: https://news.ycombinator.com/item?id=43584547
Points: 14
# Comments: 18
