What is Cohort Commissioning by nth Venture?
What is Cohort Commissioning by nth Venture?
nth Venture is building businesses from scratch and funding its studio operations through the creation of ownership opportunities for accredited investors. Watch the brief video below and read on to learn more about the Cohort Commissioning process.
Chances are you haven’t heard of Cohort Commissioning until you came to nth Venture and that’s OK – it’s an entirely new concept we’ve conjured up.
We will be covering the following 2 areas:
Building together to achieve zero to one.
Faster, stronger, better by building in cohorts.
1. Building together to achieve zero to one.
As a venture studio, we take an equity stake in all of the units that we create in exchange for the services we provide, such as operations, HR, IT, marketing and communications, as well as basic startup expenses that we cover through the studio.
Rather than keeping all that equity and seeking potentially dilutive external funding, we sell a portion of our equity in each of the businesses of a cohort in a tranche, all at equal, ground-floor valuations to fund operations of the studio, including staff, software, recruiting, travel, and professional expenses.
There are several reasons we do this:
We want Main Street investors to have a chance to participate in our model.
We are proving that you can build great, profitable businesses without large amounts of cash upfront.
We avoid the constraint of artificial exit timelines, which is a challenge with traditional VC investments.
With Cohort Commissioning, investors are granted direct equity in each of the business units being created in a cohort, and the baseline entry point is only $5,000, making it accessible to a larger group of investors.
2. Faster, stronger, better by building in cohorts.
Building in cohorts offers (among other things):
Economies of scale
Network effect benefits
Potential synergies between units
Camaraderie and collaboration for new Presidents
In short, it’s a win for both the businesses we’re building and our investors, it costs less to build in cohorts, it creates better outcomes, and quite honestly, it’s a lot more fun for everyone to do it together as a group.
People who invest through Cohort Commissioning with nth Venture gain direct ownership in a diverse group of startups that will be nurtured, grown and supported by the nth Venture studio for the long haul.
Learn more about our businesses at www.nthventure.com/portfolio and investment opportunities at www.nthventure.com/invest.