The short version
Capital is whatever a company needs in order to exist and grow. Usually that means money. But for most early-stage software startups, money is a middle step: it gets raised in order to be converted into a product.
Technology as Capital removes the middle step. The Loop Ventures invests product strategy, design and software development directly, and receives a minority equity stake in return. The founder does not raise a round to pay a development bill. The product is the round.
Where it sits among the established terms
The widely used name for this kind of deal is tech for equity, also called software for equity. Tech for equity is the category. Technology as Capital is how The Loop Ventures does it.
The difference is in the attitude. Many tech-for-equity deals are development contracts paid in shares. We treat ours as investments:
- We select like investors. We evaluate the market, the validation and the founder before committing, and we take few companies a year.
- The equity is agreed upfront. We are partners from day one.
- We stay after launch. A shareholder has reasons to care about version two.
What it means for a founder
If you work with us under this model:
- You get a complete product team without a traditional development bill. Most deals include a commitment fee, a fraction of what an agency would cost.
- You give up a minority stake. The company remains yours.
- The startup owns its product and intellectual property.
- You stay responsible for the business: customers, sales, operations.
- The product typically reaches the market in 8–12 weeks.
What it does not mean
It does not mean free software, and it does not mean we fund your operations. Technology as Capital covers the product. Marketing budgets, salaries and working capital are still yours to solve, with revenue or with financial investors. We explain how the two kinds of capital fit together in tech for equity vs. angel investment.
Why we work this way
We have spent years putting products in the market, and we have seen good businesses stall for one reason: the founder could sell it but could not build it. Those founders do not need a lender or a supplier. They need a partner whose contribution is the thing they are missing.
If that is your situation, read how it works or apply with your idea.