New top story on Hacker News: Ask HN: As a Founder, is this business model compelling?

Ask HN: As a Founder, is this business model compelling?
4 by salestoscale | 3 comments on Hacker News.
I recently launched an independent sales agency specializing in early-stage startups. My model is adapted from my experience as an independent manufacturer's rep. for electric utility products used to transmit power from generation to end-users. In an overly simplistic summary, I am offering to work with companies under a performance-based contract that requires payment only when something is sold. It is backed by an agreement that is cancelable, with a 30-day written notice, if I don’t produce the agreed upon performance metrics. The macro trends that make me think this is an interesting approach in today’s environment are as follows: 1. Higher interest rates and less availability to capital is making seed funding harder to secure 2. Investors are aligning with more efficient and cost-conscious startups 3. Runway and cashflow are more important than ever because funding rounds are taking longer So, do you think this is an interesting approach or am I missing something? As an aside, I have been a long time reader of HN and I am so grateful for the interesting, intelligent, and thought provoking comments. Thank you in advance for any you may offer to my post!

April 4, 2025 at 11:15PM salestoscale 4 https://ift.tt/Ah8os45 Ask HN: As a Founder, is this business model compelling? 3 I recently launched an independent sales agency specializing in early-stage startups. My model is adapted from my experience as an independent manufacturer's rep. for electric utility products used to transmit power from generation to end-users. In an overly simplistic summary, I am offering to work with companies under a performance-based contract that requires payment only when something is sold. It is backed by an agreement that is cancelable, with a 30-day written notice, if I don’t produce the agreed upon performance metrics. The macro trends that make me think this is an interesting approach in today’s environment are as follows: 1. Higher interest rates and less availability to capital is making seed funding harder to secure 2. Investors are aligning with more efficient and cost-conscious startups 3. Runway and cashflow are more important than ever because funding rounds are taking longer So, do you think this is an interesting approach or am I missing something? As an aside, I have been a long time reader of HN and I am so grateful for the interesting, intelligent, and thought provoking comments. Thank you in advance for any you may offer to my post!

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