I've been approached by some people looking to grow a reverse incubator. The structure is essentially as follows;
I would further vet lightly vetted ideas pitched to me and discovered by founders.
They fund product development - est 40k
They fund pre-determined % of angel round.
They are proposing a long vesting structure and taking significant (majority) of equity. I have no issues with the model at present but is anyone familiar with this structure? Does anyone have key drivers are mutual value creation/accountability etc? Common pitfalls etc? I've heard of a few that operate on this model but I haven't yet found them. Any insights would be appreciated.