Q&A: How does H10 Make Money?

Also asked by a very smart friend of mine, the answer is a little awkward, but simple. H10 was not created to make “a ton” of money. The business needs to be profitable, but the real action (tons of money, possibly) will be in the micro-funds.

That said H10 will make money in the following ways:

1 ) the 6.5% equity stake it takes in all ventures that it accepts

2 ) Event sponsorship – large corporations focused on growing relationships with small businesses

3 ) Event registration from professional investors (VCs, Angels, Private Equity, Governmental Agencies, etc.)

4 ) Books (as in a book deal)

5 ) Private, invite-only, events for professional investors to meet and greet the H10 ventures and alums

6 ) Professional fund management fee (see more about the Professional micro-fund below)

7 ) Educational seminars and entrepreneurial training (US and International) – a weekend with H10 alums

8 ) Licensing of the H10 codebase and hosting platform

9 ) Back office support – you know, payroll, accounts payable, account receivable, etc.

10 ) Donations from “Friends of H10”

11 ) Sales of an H10 support property (a website, database, etc.) – see the Betaworks Bit.ly example below

12) 3.5% fee of the funds raised from our crowsourced “Project” micro-funds

13) Maybe t-shirts and posters (or maybe not)

14) Office rental – need a desk for your primary developer in NY for 2 months?

15) Research Publications