Powerset, an initiative by AngelList alum Jake Zeller and coaching firm founder Jonathan Swanson, promotes a unique investment approach. Instead of traditional venture capitalists, it entrusts founders as investors utilizing a $1 million fund.
Annually, Powerset bestows 5 to 10 founders with $1 million to back other startups. Successful investments could earn these founders millions more. They’re given the complete control of the investment timeline and decisions, with no veto power handed to managing partners.
Powerset’s model lays between angel investing – with no personal funds involved – and classic VC scout programs. It encourages founders to serve as mentors to the portfolio companies.
Though some founders may find the commitment challenging due to their own startups, Zeller believes that the best founders, understanding startup intricacies, can emerge as great investors.
However, Powerset does not entertain founders who consider it as an easy transition to a full-time venture capitalist role. It favors those dedicated to building their venture over 5-10 years, keen on investing in potential star-ups, not just any marginal company.
Original source: Read the full article on TechCrunch
