61–70 of 207 posts
I will never invest in a startup where the founder(s) don't believe in their companies. Moving forward all terms I negotiate will explicitly state that this (e.g. things like FounderPool) will not be a possible scenario.
But I’d imagine investors and employees would be very interested. Also worth noting tax treatment around this issue is evolving:
> In particular, a senior campaign official said a Biden administration would take aim at so-called like-kind exchanges, which allow investors to defer paying taxes on the sale of real estate if the capital gains are reinvested in another property.
https://www.bloomberg.com/news/articles/2020-07-21/biden-pro...
Wonderful idea. These exchanges are very common in other markets. In my experience, a proclivity for equity sharing tends to have an adverse selection problem with early stage founders. The best founders are irrational, and this seems like a highly rational idea :) But I’d imagine investors and employees would be very interested. Also worth noting tax treatment around this issue is evolving: > In particular, a senior…
One more risk founders and entrepreneurs need to brace for : Regime uncertainty. Political uncertainty added to market risk, macro, pandemics, on and on...
Wonderful idea. These exchanges are very common in other markets. In my experience, a proclivity for equity sharing tends to have an adverse selection problem with early stage founders. The best founders are irrational, and this seems like a highly rational idea :) But I’d imagine investors and employees would be very interested. Also worth noting tax treatment around this issue is evolving: > In particular, a senior…
Wonderful idea. These exchanges are very common in other markets. In my experience, a proclivity for equity sharing tends to have an adverse selection problem with early stage founders. The best founders are irrational, and this seems like a highly rational idea :) But I’d imagine investors and employees would be very interested. Also worth noting tax treatment around this issue is evolving: > In particular, a senior…
I will never invest in a startup where the founder(s) don't believe in their companies. Moving forward all terms I negotiate will explicitly state that this (e.g. things like FounderPool) will not be a possible scenario.
Earlier quoted context omitted.
It works both ways. 1. In a verticalized approach, your startup risk approaches your sector risk, if pool is large enough. 2. In a stage based pool approach (sector agnostic), risk is more diversified but rankings will be less meaningful. For ex, a rocket company founder may not be a good judge of CPG companies.
Fair points. Does it depend on what you are hedging against, maybe? i.e. "my startup not being successful" vs "the economy tanking/oil prices trebling/whatever".
Even in a shock scenario, there are sector winners (see biotech and funeral homes in covid pandemic)
I’m also a little confused that this isn’t a “Show HN”, but they talk about YC with authority. Are they in YC? Some other affiliation?
Earlier quoted context omitted.
1) We screen companies based on their quality, ex: a round raised within the last 3-6 months. 2) Founders get to interact with participating companies and rank them based on their insight. Only companies that are highly ranked get into a pool. A pool is also dynamic and founders in the pool can invite new startups based on their interactions. Overall, this is based on the concept that founders are often good judges o…
> a round raised within the last 3-6 months If a company has raised capital and done so recently, how would you compare this to the founder selling an equivalent amount of their shares in into that round (secondary)? IOW, if a founder has liquidity and a priced round, in which situations is this better or worse?
If the founder has liquidity, before joining the pool, he would be joining the pool right?
Or did I misunderstand?
Can the people involved with the company note their affiliation? It seems like there are several folks chiming in, and some comments make the affiliation clear (eg, by speaking in the first-person about the company). But in other comments it’s much less clear whether someone works for the company or just got info off the website. I’m also a little confused that this isn’t a “Show HN”, but they talk about YC with auth…