Successfully funded startups that generate a ROI for the community fund, will also bring a paid reward for those who had allocated community funds into the successful startup, i.e. the “micro-investments” or investments from the “community budget”
The distribution is made so that 1st in the ranking list will get 10x the amount of the last one on the list and everyone else linearly in between. Actual percentages and dollars depend on how many members there are in total.
The goal is to get experts or certified partners from the community to represent the Grow VC community fund as a shareholder in successfully funded startups. The vision is that the community would be reinforcing, so that Grow VC has only a facilitating and enabling role in the process.
This applies to the community fund investments, the personal direct investments are between the investor and the startup, where the investor is liable and accountable for their own investment and Grow VC only enables the platform where this investment takes place.
If the funding of a project fails, i.e. it does not successfully raise the amount to close the funding round, the community fund portion will either be redistributed to other investments suggested by members or then it will remain as a side investment, to be allocated into startups that successfully close their funding round. This can happen in a situation where the original member that made the selection is no longer a member in Grow VC. This is still subject to change, as we are constantly developing the service.
Making micro investments or community fund investments is one core function in the Grow Venture Community. Paid subscriptions retain 75% of the membership fee, that they can freely allocate in any startups within the community, as they choose.
You can invest your community fund into promising startups by identifying a startup that is looking for funding, selecting “make an offer” and by then choosing “from the community budget”.
