Katherine Homuth’s Post

View profile for Katherine Homuth

🚀 Founder, CEO & Chair | Scaling Growth & Venture-Backed Companies | $200M+ Raised | Growth Strategy | Board Leadership

What if we could reimagine moonshot investing—making it low risk with infinite upside? This week, I had a thought-provoking conversation with John Ruffolo, whose take on underwriting high-stakes deals inspired me to rethink how we fund bold ideas. Building on John’s insights, I developed a framework I’m calling The 1x Safety Net. Here’s how it works: Instead of incrementally funding a moonshot business in stages (like a typical venture deal whose unit economics remain constant), provide enough capital upfront to take the company from zero to one. This ensures the company can actually reach the point of building significant intrinsic value, allowing you to underwrite the deal to a 1x return—with nearly unlimited upside. It transforms moonshot investing from a gamble to a calculated opportunity: protecting the downside while unlocking massive potential. From high risk, high reward to low risk, infinite upside. More in my latest post: https://lnkd.in/eq37veER

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It's remarkable that you're phrasing it as 'instead', isn't the whole point of moonshot investing supposed to be this "enough capital upfront to take the company from zero to one."

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Trevor Dietrich

Fractional Sales Executive

3mo

I would appreciate your definition of a moonshot. (I coach a couple of alternative new energy , new materials start-ups at the local accelerator here in Calgary. Just curious if they would fit your definition)

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Antoine Howard

💰 Thought Leader l Business Strategist l Fund Managers: Unlock High-Value Investors and Scale Your Investor Acquisition Program on Autopilot | 🔥 High Achievers: Master Your Crossroads & Step Into Your Ultimate Power

3mo

An even better approach would be investing in companies and opportunities that are already cash flowing and producing alpha returns.

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Andrew Peek

Founder at Agora Intelligence (d.b.a. Tilt)

3mo

Love this. It’s like a play on first loss programs which have been wildly successful with emerging manager hedge funds.

Stephanie (Batory) Brown, MBA

A. Professor UCW | Retail CPG Strategy, Innovation & Entrepreneurship | PhD Student ESCP | Edu-Tech Founder | People + Planet Advocate & Speaker | ex-Lululemon | Mom

3mo

What is the rationale for NOT doing this? Do investors think by investing in tranches that it’s somehow reducing the risk? Has anyone done a study on risk on investing in series vs one big commitment (perhaps provided in steps but guaranteed)?

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Meriel Chamberlin

Founder Full Circle Fibres | Churchill Fellowship 2023 | Circular Economy Champion | Preferred Fibre Sourcing Expert

3mo
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Brent L.

Founder @ BigGeo | Building the Control Plane for Trusted AI, Geospatial Applications & Data Sovereignty

3mo

Katherine Homuth I’m very interested in hearing more like this.

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Krista Schreiber

Apparel & Textiles | Design & Development | Materials | Product Process Operations | Supplier Strategy & Partnerships | Quality Production | Nike, Lululemon, Cotton Inc, Arc'teryx

3mo

Katherine Homuth, this is another great idea! Can we set up a time to talk?

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