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Fixing Founder Scarcity: Founders' Mutual Fund
- cjbenedikt 8y agoSounds like this: https://pitchbook.com/news/articles/kindred-spirits-meet-the-vc-firm-giving-startup-founders-skin-in-the-game https://pitchbook.com/news/articles/kindred-spirits-meet-the...
- byng 8y agoDefinitely very similar, just different level of abstraction. £80m pound fund. Assuming it does 2x in 10 years, with 0% hurdle rate, 20% of carry will be, 16m£? divide it by 20 entrepreneurs and you get £800k. Not bad... One thing going for founders' mutuals is diversification. 100, 500 companies instead of 20 companies should work better for founders, as described here: http://reactionwheel.net/2015/06/power-laws-in-venture.html http://reactionwheel.net/2015/06/power-laws-in-venture.html