Thread by @tylertringas

2 good simple questions being asked about this:

1/ what would you do with the money?
2/ how would investors get paid back?

answers in thread below...

https://twitter.com/tylertringas/status/1371905785215717380

1/ For legal reasons, this can't be capital that we actually invest in startups. We raise that from LPs who then only see upside in the companies we invest in from that fund. This money would go to the @earnestcapital operating company that pays for our awesome team.

So this would let us continue to build out our team faster, provide more support for our portfolio and make awesome products like Trailhead.

2/ Investors would get a percentage of "carry" in all current/future Earnest Capital funds. Basically when we earn a return for our LPs, we take 20% of the profits and this group of investors would get a slice of that.

We already have a carry-sharing program for employees and our early investors where we essentially give it out, this would just let other investors effectively buy into that program: earnestcapital.com/profit-sharing…

Note: this is "basically" a profit-sharing arrangement so there's no need for us to ever "exit" for investors to earn a return.