Market 2

The diagram below shows the basic idea.  Definitions are below the diagram.

Idea ChampionAn Idea Champion is the term I use to describe a person who has an idea and is willing to commit money and time to implement it, but not give up their career to it.  Some examples of I.C.s who I have worked with include: corporate leaders, medical doctors, professors, psychiatrists, attorneys, real estate developers, engineers, and business professionals.  The amount spent on the idea is typically $8-30K, but it can be a lot more.  Unfortunately, the idea usually dies a slow death to lack of resources and time (not usually to bad ideas).

Example (from FAQ): "Each approved project concept becomes an LLC, and each party, DC7 and you, may put up soft equity (hours worked, patents, etc) and/or hard equity (cash). A simple example might be: the investor puts up $9000 and commits to 75 total hours of work, and DC7 puts up $1000 and commits to 300 hours of work. Equity ownership in the LLC becomes pro rata based on that agreement at market rates, and the cash is allocated by DC7 to relevant costs (for instance, 625 outsourced hours overseas at $16/hr). Further, DC7 is building a pool of shared resources that can be leveraged to expedite the project and reduce costs.
In this case, your $9000 investment would be leveraged to produce 1,000 hours of specialized labor that is taking advantage of a growing source of proprietary resources, such as licenses, marketing agreements, source code, etc. This project would likely cost more than $60,000, take up more time, and have a higher risk of failure if pursued independently. We seek a cash-out valuation for our investors between 7:1 and 15:1 from angels and VCs, if cashing out early is important to you. In all cases, all parties involved are incentivized to work efficiently, spend as little money as possible, and to grow and promote the enterprise."