ReadySet, an equity, inclusion, and diversity startup led by the co-founder of Project Include Y-Vonne Hutchinson, has reportedly announced that it secured its initial, and perhaps its last, funding from Indie.vc.
Hutchinson, while speaking about the newly raised funds, stated that the company is lucky enough to finish this funding round right as the COVID-19 pandemic started growing and then moved the business to do remote operations that offered connection.
Hutchinson further added that the company has been profitable the whole time it has been operational and in business. However, the firm wanted to have the potential to maximize its impact, going beyond in-person training services and doing work that felt a bit more like product development which did not necessitate instant revenue.
Over the past five years, the company has been sustaining itself through revenue. In fact, in 2019 it witnessed an annual revenue of approximately $1 million. The company makes money by providing consulting services to the firms that are looking to make their work culture and workplaces more inclusive. ReadySet has already worked with firms such as Medium, Mailchimp, UCSF Health, GitHub, Amazon, Airbnb, Salesforce, and many others.
The company decided to take investment from Indie.vc owing to the primary focus of the investor on profit-driven startups. Hutchinson stated that she did not want to give away a massive chunk of ownership in a company that she built from scratch.
The investor, Indie.vc takes zero equity upfront. If any startup in the company’s portfolio secures additional capital or sells, the company converts the investment in that startup into equity at a pre-decided percentage that has been decided by the company. If any startup never raises or sells another round, Indie.vc gets a particular share of that startup’s revenue up until it makes five times its initial investment.
Hutchinson while speaking about the investor, stated that Indie.vc was not interested in taking up a massive chunk of the company’s business but instead showed interest in helping the company become more profitable.