Tech Startup "Factory"?

[GetShitDone]

Hey guys,

I've had (fairly public) success with a tech start up that I founded (Launched it 2 yrs ago).

However, recently lots of first-time entrepreneurs are coming to me saying that they want to start tech start ups with me.

Put simply, people in my non-tech network's perception of me see me as the "Mark Zuckerberg" type now and want to work with me due to my credibility, network, and experience.

I have around 6 people (very eager to get into the start up game) wanting to launch a start up with me and I wanted your take on the following business model I thought of to "uniform" or "consolidate" the opportunities:

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Launch a Venture Building Firm which takes idea-stage start ups/founders under it's wing and provides their start ups with the following resources for the long haul:

• Advisory

• Capital Raising (Via my investor network + finding new investors)

• Technology Development (Via partnership with a dev firm and later on in-house developers)

• Legal (Via partnership with a business lawyer I will find)

• Accounting (Via in-house CFO that I already have ready to join us)

• Administration

In exchange, we will take a 20%-50% stake in their start up from the beginning at idea-stage with the promise of being their business partner by providing the above services.

Every time they need to do a Capital Raise, we will also take a 10% cut of total $ raised for them.

Every time they need to renew their Tech Dev contract with us (since we build and maintain their tech), we can ask for more equity or get them to pay cash in exchange for the service.

We could do all of the above for 6 of the founders, aka 6 different start ups. I can even look into cutting it down to 3 companies by putting 2 founders on each team.

Obviously, we will raise investment from investors for this as well in order to pay for Tech Dev, etc. However, I can do my best to also partner with Legal/Accounting/Tech Dev in exchange for equity within my Venture Building firm too.

What are your thoughts on this from a pros and cons perspective?

I only thought of it because I have 6 first-time entrepreneurs wanting to start tech start ups with me under my mentorship.

 

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