Startups pay-it-forward with 1% equity. Mentors pay-it-forward with their time by mentoring and their money by investing $10,000 per year in the Partners Fund.

All of the 1% equity from each company goes into a fund and after you get your money back the profits are shared 50/50 with Capital Factory to fund future operations.

The capital raised in the fund is primarily used to pay for staff who provide value to portfolio companies, not for investments. Some capital is invested directly through investment challenges.

Last year this fund oversubscribed very quickly.