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Soloist Fund
By jamiegray2234
my idea for a venture capital firm whose thesis is to back AI-powered solo founders, and never have them build out a team (this reduces burn rate)
The founder gets a modest salary based on where they live
The fund gives virtually infinite amounts of money for AI tools (since that’s much cheaper than building out a team)
In most cases the AI costs are probably not even as much as ONE full time salary, but the actual upper limit (to the "virtually infinite" could be 5 human salaries)
The fund can give lots of AI tips and tricks to all the founders in the portfolio, shared Prompts, cost-savings tips, Best practices
The fund requires maximum Transparency and visibility into the workflows and tools used and the finances (due diligence)
The fund receives 2% revenue share forever and zero equity (is this good? or perhaps this creates incentive misalignment?)
The founder retains 100% equity (again, see question on line 7)
Eventually company revenues are able to pay for all costs, so the fund stops paying costs, but still receives 2% of revenue — How can this be enforced? Since founder retains 100% equity they could simply decide to stop paying this RevShare, right?
Connects to My venture investment thesis
A good tagline for this fund would be Never Hire since Fire everyone wouldn’t really be a good one lol
The fund would probably create a dashboard of all the members and their stats
this won't even be necessary because everyone will just be able to build things quickly and easily with AI