What tech for equity means
Building a software product costs real money. A founder without a technical team usually has three options: pay an agency, raise capital to hire developers, or find a technical cofounder. Tech for equity is a fourth one.
In a tech-for-equity deal, a technology partner contributes the work a startup would otherwise have to buy: product strategy, UX and UI design, architecture, software development, launch and ongoing technical support. In exchange, the partner receives equity in the company rather than the full cost of that work in cash.
You will also see it called software for equity, technology for equity or software development for equity. They all describe the same trade: the product gets built, and the builder becomes a shareholder.
Tech for equity is the category. Technology as Capital is how The Loop Ventures does it.
How tech for equity works at The Loop Ventures
The Loop Ventures is a tech-for-equity venture studio. We build software startups in exchange for minority equity. The process has four steps, described in detail on how it works:
- You apply. You tell us about your idea, your traction and your edge in the industry. What you share is protected under an NDA, and we reply within 7 days.
- We evaluate like investors. We look at your market, your validation and your commitment. We take few bets a year.
- We build. We define the scope together and sign it. You see working progress every week, and the product reaches the market in 8–12 weeks.
- We grow with you. After launch we stay on as your technology partner: support, improvements and the next versions.
The equity is agreed at the start. We are partners from day one, not a supplier waiting to be paid.
Who it is for
Tech for equity fits founders who know their industry deeply and need a technology partner, not founders looking for free software. We look for:
- Prior validation. Interested customers, a waitlist or first users. Signals that the market wants it.
- Full-time commitment. We put a team to work on your product and expect the same from you.
- An unfair advantage. Contacts, experience or distribution in your industry that others do not have.
- Commercial capacity. We build. You sell and operate.
If you are still deciding whether the idea is worth pursuing, it is too early. If you have proof the market wants it and no way to build it, this is the model.
What The Loop Ventures contributes
We contribute product strategy, design and engineering instead of investing only cash. In practice that means:
- Defining what to build first and what to leave for later
- Designing the experience and the interface
- Building the product and shipping it to real users
- Support after launch, and the versions that come next
You can see the results in our portfolio of live products.
What founders contribute
Founders remain responsible for their industry expertise, validation, commercial strategy and business execution. You bring the customers, the market knowledge and the ability to sell. You run the company. We do not replace the founder, and we do not run the business for you.
Why we take equity
Equity aligns the two sides in a way an invoice never does. An agency earns when it bills hours. We earn only if the company becomes valuable. That changes the decisions we make while building: we cut scope that does not matter, we care about what happens after launch, and we say no to projects we do not believe in.
We take a minority stake. The business stays yours.
Tech for equity compared with the alternatives
| Software agency | Angel investor | Technical cofounder | Tech for equity with The Loop | |
|---|---|---|---|---|
| What they contribute | Development hours | Cash | Their own time and skills | A full product team |
| What you give | Cash, in full | Equity | A large share of equity | A minority equity stake |
| Who builds the product | The agency | You still need a team | One person | The studio |
| Incentive | Billing the project | Return on investment | Success of the company | Success of the company |
| After launch | A new contract | Occasional advice | Stays on | Stays on as technology partner |
How this differs from hiring a software agency
An agency sells you development and its work ends at delivery. You carry all the risk, and you pay whether or not the product succeeds. A tech-for-equity partner shares that risk. Read the full comparison in tech for equity vs. hiring a software agency.
How this differs from raising money from an angel investor
An angel gives you cash, and you still have to find, hire and manage the people who will build the product. We skip that step: instead of financing the technology, we become the team that builds it. More in tech for equity vs. angel investment, and in our description of the angel implementer.
How this differs from finding a technical cofounder
A technical cofounder is one person, hard to find, and usually expects a large share of the company. A studio brings a complete team with experience shipping products, for a minority stake. It is a technical cofounder alternative for founders who cannot find the right person or cannot wait. More in tech for equity vs. technical cofounder.
Why we select only a few companies
Every company we take on receives a real team and months of work that we pay for ourselves. We can only do that well for a small number of businesses a year. That is why we evaluate applications the way an investor would, and why a no from us usually means “not yet” or “not our fit”, not a verdict on the idea.
What happens after launch
Launch is the beginning. Every project includes a support period after launch. After that, maintenance is agreed as a monthly fee, and anything outside the signed scope is quoted separately. As shareholders, we stay interested in the product getting better and the company growing.
Next step
If this sounds like your situation, apply with your startup idea. It takes about five minutes, and we reply within 7 days. If you want to look around first, start from the home page or read how it works.
Frequently asked questions
What is tech for equity?
Tech for equity is a model where a technology partner contributes product strategy, design, software development and launch to a startup in exchange for an equity stake, instead of charging the full development cost in cash. It is also called software for equity, technology for equity or development for equity.
Is tech for equity free?
Not exactly. You pay with equity instead of a development bill. At The Loop Ventures most deals also include a commitment fee, a fraction of what an agency would charge, which confirms both sides are serious. In high-conviction cases we work for equity only.
How much equity does The Loop Ventures take?
A minority stake, defined by the business and the scope of the work. We come in as partners, not owners. The exact numbers are discussed face to face.
Who owns the product and the intellectual property?
The startup does. The product and its intellectual property belong to your company, in which The Loop Ventures holds a minority stake. The agreement spells this out from day one.
Can I build an MVP in exchange for equity?
Yes, if there is a fit. The Loop Ventures builds first versions and full products in exchange for a minority equity stake, typically reaching the market in 8–12 weeks. We look for founders with prior validation, full-time commitment and a real advantage in their industry.