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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FWIW it's hard to make numbers meaningful. Ex: - $50m fund, 35 investments - 3x return -> $20m in carry - Allocate 20% to founders in bottom 60% of companies - Assume 2 founders/co --> ~$100k per founder BUT that's ~10 yrs after they started co, and 3x fund isn't an easy target.
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Replying to @lpolovets @zackkanter
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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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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