I've considered this model before. Redistribute some % of fund carry to founders who don't have good exits. The goal is similar to having founders take $$ off the table in later rounds: encourage risk-taking and swinging for the fences w/some safety net if things don't work out.https://twitter.com/zackkanter/status/1065436575738281985 …
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A thought I’ve had is instead having a fund (or accelerator or similar) set up as a risk pool for private long term disability insurance and term life insurance. Should be cheap and especially for LTD probably actually easier to get for 70 founders than for 2.
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The mortality rate of funded founders is very close to zero but it is not actually zero. Although getting life insurance should be close to trivial I will bet that most people who are young and healthy don’t organize to actually do it.
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Doesn’t have to be strictly higher EV than PM at FAANG. Just enough to not be destitute. Still get more at the margins to start cos.
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Or: you’re satisficing with this model, not optimizing.
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The easiest solution to that is to fund people who can't get the PM job at Google. Just like how other companies have to compete with Google for talent.
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