Our venture thesis

What do we look for when building a new venture

  • Platforms win

  • What won’t change in the next 10 years?

  • Target niches

  • ‘Boring’ is better

  • Capital-efficient

Zero to 1

We validate the venture during a 4-6 month MVP track.

No two ventures are the same so the process to go from zero to one differs. During this phase we will focus on validating desirability, feasibility and viability through generating first revenue.

From incorporation to 1+

We look for an ambitious entrepreneur that fits our values who gets 30% equity from day 1. The entrepreneur also receives the right to buy an additional 50% equity, reducing VV ownership, through regular scheduled payments based on a percentage of profits/revenue of the venture.

Payments are delayed for a grace period of 6-36 months. After the grace period, the return payments begin, lasting until a return cap is hit (ind. 2-5x the original investment). Once the return cap is reached, VV is left with a residual stake — 2-10%, a fraction of the pre-revenue share ownership.

At any point, should the venture founder wish to pursue a traditional equity VC round, or get bought, the revenue share is paused, and the VV’s then-current ownership converts to equate to traditional equity. 

The advantages of the RBE (revenue based equity) venture studio model

Aligned incentives
Whether it is a breakout success or complete failure and loss of capital, Vos Ventures is along for the ride.

Long-term alignment
Retain a small residual stake in the company after the return cap is reached, driving alignment well beyond the horizon of the revenue share, similar to the long-term orientation of a holding corporation.

Clear return expectations
The return cap is a stated multiple of the investment, typically 3x-5x.

Early liquidity
Creates early liquidity that can be either reinvested or distributed to Venture Partners.

Entrepreneur gains control
Ownership is the king of all incentives for growth.

Improved financial management
All parties want the company to afford the payment obligations and deliver a quick return. As a result, unfounded hockey-stick graphs and unicorn promises give way to financial fluency, realistic expectations, and frank conversations about transparency and what a business can credibly achieve.