As co-founders of Voice123, my wife Tania
and I became accidental entrepreneurs, successfully growing our business to over 200,000 users without traditional startup funding like venture capital.
Our journey highlights a crucial point: the Silicon Valley investment model, focused on high valuations and large-scale exits, often stifles smaller, sustainable businesses.
This approach overlooks the potential of “not-so-big” companies, which can be both profitable and impactful.
Frustrated with the investment world's bias against so-called lifestyle startups, I propose a new investment concept: "convertible revshare."
In this model, angels and accelerators would invest in startups through a revenue-sharing agreement that could later convert into equity. This method would support a broader range of businesses, including those often ignored by traditional funding methods, such as bootstrapped or non-profit companies.
I believe this approach could foster a more inclusive startup ecosystem, focusing on long-term growth and sustainability. It shifts the emphasis from impressing investors to satisfying clients, and from short-term gains to enduring success. I invite thoughts on this idea, its potential challenges, and its applicability in various economic environments.
Could this be a way forward for emerging economies and even Silicon Valley?Alexander Torrenegra