Writing · September 28, 2026

How we think about risk

Most small businesses that fail don't fail because the idea was bad. They fail because they ran out of cash before the idea had time to work.

So we plan around that:

• Conservative projections. We model a base case, a downside and a severe case. If the business only works in the base case, we pass.
• Reserves. We raise enough to cover months of operating costs on top of the buildout.
• Investors first. Distributions go to investors until they have their money back. Our share comes after.
• Separate entities. Each project stands on its own, so trouble in one can't spread to another.

None of this removes risk. Investing in a small business can mean losing all of the money you put in. What it does is make sure we have thought about how things could go wrong before asking anyone to trust us with their money.