Why I’m excited about profit-sharing startups

Ryan, a tech investor and former Product Hunt founder, argues that profit-sharing startups will become more common in 2024 and beyond, as founders and investors seek earlier liquidity than the typical 10-plus-year path to exit. He cites a culture shift toward profitability, AI-driven reductions in the capital needed for payroll, and a regulatory climate that makes exits harder, such as the failed $20B Adobe acquisition of Figma. He says the main obstacles are the lack of standard agreements, with Bonside's Repeatable Revenue Agreement offered as an early example, and few visible success stories. He adds that VC remains valuable for capital-intensive markets.