How VCs Can Use CX to Add Value Without Burning LP Capital
VC funds need to differentiate beyond "capital plus network." Portfolio companies need execution, not just advice. LPs want to see GPs creating measurable value without administrative overhead.
CX automates expert-led value creation for your portfolio—no manual management, no LP conflicts, just additional revenue streams and better-performing companies.
The Execution Gap in VC
Your portfolio founders need senior operators to ship product, fix growth engines, or scale operations. Traditional options don't align:
- Hiring full-time: Burns runway founders don't have
- Consultants: Expensive, misaligned incentives
- Fund budget: Dilutes LP returns for "value-add" that should generate returns
CX changes this equation. Founders hire vetted experts using cash plus Execution Capital (XC). Work is scoped by milestones; repayments begin when revenue starts and end at a fixed cap.
Automated Infrastructure for Fund Managers
Turnkey deployment: CX's automated platform handles deal flow management, expert vetting, and XC issuance. You configure parameters—cash/XC splits, repayment caps, milestone criteria—then the system runs itself.
Zero administrative overhead: Automated matching between portfolio companies and vetted experts. The system handles scoping, contracting, milestone tracking, and payments. You access real-time dashboards and can produce reports.
Configurable economics: Adjust repayment triggers (revenue thresholds, milestone gates), cap multiples (2-5×), and cash/XC splits (10-90% range) per deal type. Change parameters as your portfolio matures.
Revenue-linked automation: XC repayments flow automatically when companies hit revenue triggers. System tracks all transactions, maintains compliance records, and distributes your Operator share without manual intervention.
Three Revenue Streams for VCs as Operators
OPERATOR REVENUE STREAMS
IMMEDIATE
10% TRANSACTION FEES
(CASH + XC)
MEDIUM-TERM
10% OF CAPPED
REPAYMENTS
LONG-TERM
EQUITY/TOKEN UPSIDE
FROM XC
& CO-INVEST
POOL