Why Invest in Founders, Not Projects?

Y Combinator research: 5% of companies become unicorns.
But 11% of founders create unicorns during their career.
Founders outlive companies.

Why Startup Investing Has a 95% Failure Rate

Traditional venture capital invests in companies:

  • • You bet on one idea, one execution path, one market
  • • If the idea is wrong, your investment is worthless
  • • If the market shifts, the company can't pivot
  • • If the team quits or fights, the venture dies
  • 95% of startups fail

The Insight:

Companies are fragile. They depend on a specific idea working, in a specific market, with a specific execution. When any variable breaks, the company fails.

But founders are anti-fragile:

  • • Founders learn from failures and iterate
  • • Founders can pivot to new ideas and markets
  • • Founders build pattern recognition over time
  • • Founders compound knowledge and networks

The Data:

Only 5% of companies become unicorns. But 11% of founders create unicorns during their career.

The Opportunity:

What if you could invest in the founder instead of the company?

Investing in People, Not Projects

Ertad Family is a Delaware corporation that owns 15 years of entrepreneurial output from Dimitri and Inna Ostashenko.

What You're Investing In:

Proven founders (not first-time entrepreneurs)

15-year commitment (not one project)

Entire portfolio of ventures (not one bet)

All equity, compensation, and exits (not one outcome)

How It Works:

  1. 1.Investors purchase equity in Ertad Family holding company
  2. 2.Founders pledge 15 years of venture creation to holding company
  3. 3.All new ventures, equity, compensation, and exits flow to holding company
  4. 4.Investors own percentage of entire entrepreneurial output

The Result:

You're not betting on one idea. You're investing in proven builders who will create multiple ventures over 15 years. You own all of them.

Why We're a Compelling Investment

1

Proven Execution

We don't talk about building. We've built.

  • Two companies from zero to #1 market position
  • 3-year timelines (each)
  • 80 people managed across portfolio
  • 100% bootstrapped growth
  • Achieved market dominance twice

What This Means:

We know how to identify opportunities, assemble teams, create systems, and achieve market leadership. We've done it. Repeatedly.

2

Anti-Fragility Through Failure

Most founders quit after one failure. We've failed twice and recovered twice—in 6-month cycles.

  • Bankruptcy #1 (2014) → 6 months → New venture, new country
  • Bankruptcy #2 (2025) → 6 months → Tech pivot, stronger strategy

Founders who have failed and recovered statistically outperform first-time founders. We're not untested. We're battle-tested.

What This Means:

We learn fast, adapt quickly, and don't quit. Failure made us stronger, not weaker. We're anti-fragile.

3

Family Stability & Aligned Incentives

Most startup founding teams fracture over equity disputes, vision conflicts, or life changes. We've eliminated that risk.

  • 13-year marriage, 13-year business partnership
  • 3 children (long-term commitment, can't quit)
  • Permanently aligned incentives
  • Stress-tested through business failures and life pressures

What This Means:

No founder disputes. No equity battles. No partnership dissolution risk. Our incentives are aligned permanently.

4

Learned Focus: We Only Build Big

After years in operational, geography-constrained service businesses, we know what NOT to build.

  • Global markets (TAM >$100B)
  • Technology-driven (AI-first, software-centric)
  • High margins (software economics)
  • Scalable (growth without linear cost increase)

What This Means:

We won't waste investor capital on small opportunities. We're aligned with investors who want billion-dollar outcomes, not lifestyle businesses.

5

Portfolio Approach: Multiple Shots on Goal

You're not investing in one idea. You're investing in 15 years of venture creation.

  • Multiple ventures at different stages
  • Diversified risk for investors
  • Compounding knowledge across projects
  • If one fails, you still own the others

What This Means:

Higher probability of success. Lower risk. Venture returns with portfolio diversification.

Peak Capability. First External Capital.

Why This Is the Right Moment:

1. Peak Capability

  • Maximum experience from 13 years of entrepreneurship
  • "Vaccinated" against past mistakes (learned what NOT to do)
  • Still in prime productive years (energy + wisdom)
  • Clear strategic vision and focus

2. Fresh Strategic Pivot

  • Recently completed pivot from service to tech
  • Lessons learned from operational businesses inform current strategy
  • New focus on global, scalable, high-margin ventures
  • Commitment to $100B+ TAM only

3. First External Capital

  • We've bootstrapped everything to date
  • This is our first fundraising ever
  • Highly motivated to prove model with investor capital
  • Treat investor money as more precious than our own

4. Proven Recovery Pattern

  • Just completed 6-month recovery from bankruptcy #2
  • Pattern established: we fail fast, learn fast, build fast
  • Currently at ground floor (maximum upside potential)
  • Track record proves we bounce back stronger

5. 15-Year Commitment

  • Long runway for value creation
  • Multiple venture cycles possible
  • Aligned with long-term wealth building
  • Not a "quick flip" or short-term play

The Bottom Line:

You're catching us at peak capability with maximum motivation, clear strategic direction, and a 15-year commitment to deliver returns.

How We De-Risk This Investment

No investment is risk-free. But we've structured Ertad Family to mitigate key risks:

Risk: Founder Disputes

❌ Traditional startups:

Co-founders fight, split, destroy value

✓ Ertad Family:

Married 13 years, permanently aligned, no disputes

Risk: Single Point of Failure

❌ Traditional startups:

One idea fails = total loss

✓ Ertad Family:

Portfolio approach, multiple ventures, diversified

Risk: Unproven Team

❌ Traditional startups:

First-time founders, no track record

✓ Ertad Family:

Built market leaders twice, proven execution

Risk: Lack of Resilience

❌ Traditional startups:

Founders quit after failure

✓ Ertad Family:

Two bankruptcies, two 6-month recoveries, proven resilience

Risk: Small Thinking

❌ Traditional startups:

Founders fish in shallow waters

✓ Ertad Family:

Only $100B+ TAM, learned to think big

Risk: Geographic Constraints

❌ Traditional startups:

Limited to one market

✓ Ertad Family:

Built across 3 continents, global mindset

Risk: Capital Inefficiency

❌ Traditional startups:

Burn investor money on experiments

✓ Ertad Family:

Bootstrapped to date, capital-efficient builders

Downside Protection:

In worst case, we have proven ability to generate income through service businesses (done it twice). We won't leave investors with nothing. We have a "floor" of operational capabilities.

Upside Potential:

In best case, we build multiple successful global technology ventures over 15 years. Even one significant success delivers venture returns. You own all of them.

Asymmetric Bet:

Limited downside (proven income generation), unlimited upside (multiple ventures, compounding returns).

The Opportunity

Angel Round Details:

Target Raise

Up to $1,000,000

Equity Offering

Up to 15% of Ertad Family holding company

Investor Type

Accredited investors, friends and family

Structure

Equity in Delaware C-corporation

Use of Funds:

  • • Venture development and MVP launches
  • • Team hiring (C-level executives for portfolio companies)
  • • Technology infrastructure and product development
  • • Legal, compliance, and corporate structure
  • • Runway for portfolio creation and iteration

Timeline:

  • • Incorporation: In process (Delaware C-corp)
  • • Founder Pledge signing: Upon incorporation
  • • Fundraising period: Current (rolling closes)
  • • First venture launches: Within 6 months of funding

Investor Rights:

Standard C-corp equity with stockholder rights, governance participation, and information rights. Full legal documentation available during due diligence.

Future Rounds:

Multi-round investment strategy to be developed with initial investors. Potential for follow-on investment opportunities as portfolio develops.

How Ertad Family Compares

vs. Traditional Startup Investing:

FactorTraditional VCErtad Family
Investment TargetOne companyProven founders
Risk ProfileOne idea (95% fail)Portfolio (multiple shots)
Founder ExperienceOften first-timeBuilt market leaders 2x
Resilience ProofUnproven2 bankruptcies, 2 recoveries
AlignmentFounder disputes commonMarried 13 years, permanent alignment
Time HorizonOne venture cycle15 years, multiple ventures
Upside PotentialOne exitMultiple exits over time

vs. Other "Invest in People" Models:

FactorLibermans CoErtad Family
Founder ProfileFirst-time, youngBattle-tested, proven
Track RecordSnapchat success2 market leaders built
ResilienceUnproven through failure2 bankruptcies recovered
Family StructureSiblingsMarried couple, 3 children
Pledge Period30 years15 years

The Advantage:

Ertad Family offers the portfolio benefits of the Libermans model with the proven track record and battle-tested resilience traditional VCs look for.

This Is a Different Type of Investment

You're not betting on an idea. You're not betting on a market. You're not betting on timing.

You're investing in proven founders who have built market leaders, survived failures, recovered in months, and committed 15 years to creating venture-scale outcomes.

Do you want to own one risky bet? Or the entire output of anti-fragile founders for 15 years?