TinySeed seems <i>much</i> better than the "predatory" deal Earnest Capital is offering[1].<p>But they still seems hamstrung by not <i>understanding</i> that startup investing is inherently a hits-based business. At some point they're going to get a 1000x return, whether they want it or not, and it will make all their previous investments look financially insignificant.<p>A startup doesn't have to be the "the next Facebook" to return 1000x. It could be an Atlassian or GitHub, two previously-tiny bootstrapped startups.<p>The big advantage of trying to make your money off your big hits is it allows you to be genuinely founder friendly. The big hits pay back so much that you can be generous and high-minded with the rest, like YC.<p>1. Giving up 15% for ~$150k would suck as a founder.<p>But 8% would be a good deal. Forcing smart founders to insist on the minimum end of the range seems like a bad place to start the relationship.<p>2. Having an investor make monthly payments and control your salary would suck as a founder.<p>It's going to cause anxiety about the money being cut off and it will make you feel like an employee that has to report to their boss. Investors should be peers and partners.<p>Seems like they should just make the deal 8% and pay the money at once, and trust that you've chosen good founders. If they blow the money, well, you messed up. And if they spend it differently from how you would, but succeed, who cares?<p>1. <a href="https://news.ycombinator.com/item?id=19160036" rel="nofollow">https://news.ycombinator.com/item?id=19160036</a>