Listen Up: NY Startup Funds People, Not Businesses

This is some monumental shit. PAY ATTENTION!

Pave is a new business community that wants to unlock talent and inspire progress by connecting financially accomplished backers directly with the change-makers: ambitious and driven young people. Rather than connect investors with new business plans and models, Pave thinks the next step in creating visionary opportunities is going to be ‘People behind people, doing work that matters.’

Pave builds their community with two types of people: prospects and backers. The prospects are young people striving to do work that matters and that inspires them. They’re ambitious and creative, but lack the finances and guidance to realize their dreams. The backers are established individuals who want to invest not only their money, but also their experience and wisdom in these young people to help them succeed.

Pave matches these two sets of people together, where they can then enter into an agreement. The backers provide resources and guidance, and they receive a return from the prospects. Unlike a loan, where the initial investment is paid back over time, the Pave system sets up an agreed upon return percentage. Usually, this is a set portion of the prospects earnings each month. In this way, if the venture fails to succeed, the young person is not on the hook for a huge loan.

Pave’s founders, however, say failure is unlikely to happen. The system empowers young people to pursue what they’re passionate about, and builds a ‘model of shared successes’ that acts as a business in the backers’ interest.

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