High value vouchers are given to start ups (typically for blocks of days) in return for equity in their business (between 5% and 20%). These can be used to pay for outsourced design, coding, marketing, legal and other professional services. The founders choose from a menu of participating supplier agencies, freelancers and consultants. If the founders are developers themselves, they might choose marketing, design or legal services. If they are non-technical, they might use the vouchers with a software company.
The supplier companies participate in the DIM Fund by giving significant blocks of staff time against which the vouchers are redeemed by the start-ups. In return for their time, the supplier companies are not given cash payment but get equity, which they don't receive directly but instead is pooled with other supplier companies equity and put into the DIM Fund. Because the Fund therefore consists of the accumulated equity from all the participating start-ups, the risk of each supplier's individual investment is spread.
When a participating start up achieves an exit or IPO, the Fund ploughs the cash or shares it receives back into the Fund, thereby giving an incentive to the supplier companies to participate further as the value of their shares increases. As it becomes more profitable, the Fund will issue cash dividends.
The Funds should be regional or even city-based to grow a sense of civic mission and solidarity. Tax incentives would allow suppliers to offset a cash equivalent of staff time spent and ensure any capital gains were tax free, at least at the beginning.