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 …
I wonder if you could reserve pro-rata for founders though? Like, suppose a portfolio had a norm of reserving 1% in all rounds for portfolio peer founders. This would be capital efficient (paid by founders; would only invest in companies which were near top of distribution).
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I'm not sure what you mean. How would people know which companies to invest in and which companies not to invest in? Wouldn't investing in the fund be more efficient?
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I’m imagining some scenario where founders from the 2019 class have the option of investing in rounds in 2024, by which time there should be some pretty material signal on the likely winners.
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This is effectively a wealth transfer from founders of the most successful companies to the other founders but wouldn’t feel as antinormative for anyone as “On IPO day you should, out of goodness of your heart, write checks to your chums who are not now billionaires.”
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