Starter of startups that help startups in #pdx — and often els...
- Launching from stealth, Sweat Equity Ventures is a new venture concept that trades operational and recruiting expertise for equity in startups.
- Dan Portillo, who had previously worked as the head of talent at Greylock Partners raised $30 million from Greylock partner and LinkedIn co-founder Reid Hoffman.
- He recognized that most venture investments trade a general partner and cash, along with some services, for equity. But Hoffman and Portillo wanted to push the idea further and see if founders would trade equity for value-adding services alone.
- Instead of investing money, SEV puts its crew to work inside the startups, with staff in some instances even standing in as an acting CTO, writing code or coaching founders. It's even had partners' names appear on patents alongside startup employees.
- The companies pay SEV in common stock shares, the same held by the startups' rank-and-file employees, and SEV's team, in turn, get paid salaries by the firm and also receive part of the firm's carry like a traditional venture model.
- SEV staff will stay on within a startup as long as they're needed to carry out the roadmap for the company they committed to when they "invested."