If there was one thing we’d change about OSS Ventures, it would be starting with a dual structure right at the start.

Agency : pairing consulting services with a venture builder creation arm.

We don’t like agencies because the incentives are torn between “making fees” and “building the companies”. In our mind, it results in less focus for the ventures and overall frustration from all parties involved.

Dual model : having a fund and a main structure. The fund reinvests in the companies and has a classical 2/20 strcture

We like dual model because the funding gets smoother and if done rights, incentives are good (ie the fund cannot price the underlying assets).

Pure player : pure player may work with an insane amount of funding. We’ve found that challenging, though. There is the case for “quick flips” ie selling fast the first bootstrapped companies to compound financial success. It’s challenging, though.