The Breach model.
A partnership where everyone brings what they're best at.
What the runner brings
- Market knowledge
- Network
- Sales power
- Commitment
What Breach brings
- Asking the tough questions that determine whether something should be built
- Designing and building the product
- Help with growth and funding
The equity split is discussed based on who brings what. Typically between 20-50% for Breach.
The full process
Exploration
2-4 weeks
Process
Discovery calls with potential customers. Validate the problem. Napkin business case. First product definition draft.
Financing
No costs. No obligations.
Breach's role
Advisor: Breach thinks along, advises, helps sharpen
Validate together
4-6 weeks
Process
Concepting session. Product definition. Determine solution direction. Collect letters of intent. Create 12-month plan. Build pitch deck.
Financing
Business sanity check. Does this fit Breach? If not: stop honestly.
Breach's role
Advisor: Breach thinks along, advises, helps sharpen
Build and learn
4-6 months
Process
Visual prototype. 5-10 design partnerships. Product development. Work towards paying customers. Determine go-to-market strategy. Validate pricing.
Financing
Subsidy application (e.g. Starterslift, ~€50K). If granted: establish B.V. Both parties make initial investment (~€25K total).
Breach's role
Director + builder: Breach builds the product and co-directs
Go to market
6-12 months
Process
Execute go-to-market. Iterate the product. Work towards 10K MRR. Collect CAC/LTV figures.
Financing
Innovation loan (e.g. Rabobank Innovation Loan, ~€200K).
Breach's role
Observer + strategic advisor. Runner runs the company, Breach advises strategically
Scale
Ongoing
Process
Invest in marketing and sales. Scale the product.
Financing
Angel investors or seed round (optional).
Breach's role
Observer + shareholder. Breach in the background as co-owner
The mentioned programs and amounts are indicative. The financing path may differ per venture.
When we say 'no'
We'd rather say 'no' honestly than both invest a year in something that won't work.
- No clear problem customers are willing to pay to solve
- Business case doesn't work out (market too small, unit economics don't add up)
- Doesn't fit Breach venture scope (consumer apps, hardware, etc.)
- Collaboration doesn't click after the validation phase