It doesn’t take a income share, and the construction doesn’t give it an equivalent possession proportion—15% to twenty%—in each underlying firm. If a creator companions with an out of doors agency on a product in a 50-50 three way partnership, as an example, Sluggish would have its fairness stake solely within the 50% of the enterprise the creator owns.
The agency does copious quantities of due diligence earlier than investing, which incorporates most of the similar practices it makes use of for conventional founders, in addition to extra analysis it makes use of to gauge the energy of a creator’s group.
That course of can embody contacting followers on to ask why they observe and belief a creator, alongside analyzing elements similar to viewers engagement, business traction, and the scale of the class the creator operates in, in line with Lightcap. As soon as Sluggish invests, nonetheless, it takes a intentionally hands-off method: The agency doesn’t take a board seat or impose efficiency KPIs, in line with Lightcap.
