Join us in Mexico City for the Founder Summit Oct 24th , 2021
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Are you making investments right now?

Yes! We are making investments on a rolling basis. Here is where you can start the conversation.

What is the ideal stage for investment?

In general we evaluate three buckets and would like to see at least some traction in each ?

  1. Product: You have built and launched your product, even if it is a duct-taped together Minimum Viable Product. We don’t invest if the capital will be spent on an outside team to build the first version.
  2. Revenue: Some evidence that customers will pay full price for your product. A free, deeply discounted, or still in beta product is probably too early for us. At the low end we will usually invest are around $2k in monthly revenue and invest in companies up to about $1m in annual revenue.
  3. Growth: We would like to see at least some evidence of one method of acquiring customers outside of your friends or colleagues. Even better if you have multiple streams of organic customer acquisition.

Our ideal moment to invest is when the founder(s) has launched the first version of the product, started generating revenue, the trajectory looks good, but you’re staring at that long, slow, grinding slog of “nights & weekend” to get to where you can go full-time. We provide the capital for the founders to go full-time and the resources and mentorship to accelerate your business.

Like every investor, we will occasionally invest outside of these constraints so please don’t consider these absolute requirements.

What is the typical investment size?

We invest between $75k – $250k and can lead rounds of $500k-$1m.

How is the investment structured?

We invest using a Shared Earnings Agreement. It’s very different from SAFEs, convertible notes or any other investment structure you have seen so please dig into the details. We call it “funding for bootstrappers”.

Do you invest in #{location}?

We are a remote-first operation with a (non-exclusive) focus on remote companies. Generally, we would like the answer to this to be “Yes” as often as possible.

Currently, we are able to invest in the US, Canada, most of the EU, Australia and New Zealand. Probably a few other places.

If you would like to start a US-based entity

our portfolio company FirstBase is the easiest way to launch a US LLC or C-Corp. Use the code “earnest” for $20 off.

Does my business need to be a C-Corp, LLC, etc?

Unlike traditional VCs, we do not have a strong preference for one particular business structure. A Shared Earnings Agreement works equally well with a C-Corp or LLC.

Is this an online course or boot camp? Will you teach me how to get rich online?

No. We treat you like grown-ups. Earnest Capital is, at its core, a service business. Our job is to provide you with as many resources as we can and make world-class mentors available to you, but we are not here to tell you how to run your business.

Does Earnest cap my salary as a founder?

No. Our terms have something called a Salary Threshold which is explained more here, but the gist is that founders have full control over their salary.

Will there be mentors?

Yes, we’ve put a ton of thought into structuring a mentorship program that listens first to what founders need. Learn more here.

I still have questions…

Ok, that’s reasonable, Email us or Apply.