How It Works

Roughly 5 in 6 start-ups fail (reference) and 80% of new product launches in the U.S. fail (source).  As such, many small and medium-sized businesses do not have the adequate resources to undertake ventures 

Our hedged approach allows a person or entity to undertake several ventures at the same time and spreads equity and cost among multiple partners. We believe this new strategy is becoming necessary as a corporate initiative so that companies can stay competitive in a much more rapidly commoditizing market.

There are a number of ways that this concept can be applied. The scenario below shows one way that has shown some promise. In it, you and DC7 assume each new venture as a single entity-- an LLC in this case. Together, we leverage money, resources and expertise to provide a greater return and less risk for all of us.

An Idea Sponsor is a person or business that has an innovative plan and is willing to put up some capital to market test the idea or to start a company. Idea Sponsors sometimes have a great a deal of expertise in the area and sometimes they just want to try something new. However, they often lack the time, skill and extra capital needed to feel comfortable implementing the many ancillary and technical components the venture requires. The typical solution is to outsource these components to various software, marketing, advertising, and other consulting companies. This often leads to serious problems managing everything and takes the sponsor's focus away from the core parts of the business.

Some examples of past Idea Sponsors include: 
  • engineers
  • professors
  • medical doctors
  • lawyers
  • entrepreneurs
  • real estate developers
  • a medical office
  • a multi-family consortium
  • a golf course
Some examples of past Business Plans include: (also see Current Projects)
  • custom-built billing software for a medical office
  • a new type of custom made tie sold online
  • a wood-burning bio fuel station that attaches to a large industrial plant
  • a web site to enable professional feedback for academic papers from overseas
  • a mobile-phone-based GPS & time-sensitive coupon app for small, local businesses.