FounderPool: A community for founders to share risk and diversify their equity • Hacker News Board

Re: FounderPool: A community for founders to share risk and diversify their equity

#31

Post by csentropy » Tue, Jul 21, 2020, 3:39 PM UTC

wtvanhest wrote: post #16

It’s a reasonable idea, but would make a lot more sense for employees. While outside forces impact companies, founders and executives are responsible for outcomes. Employees have little individual power to impact strategy and are more likely the victims of poor management decisions.

Founders and executives "play a role" in outcomes. The future of any company pre liquidation is uncertain.

Agree with employee pools. That is the next step version for founderpool and it is literally the most requested!

Re: FounderPool: A community for founders to share risk and diversify their equity

#32

Post by manojdv » Tue, Jul 21, 2020, 3:41 PM UTC

wtvanhest wrote: post #16

It’s a reasonable idea, but would make a lot more sense for employees. While outside forces impact companies, founders and executives are responsible for outcomes. Employees have little individual power to impact strategy and are more likely the victims of poor management decisions.

Thats true. We would eventually want to grow this to support employees (think about building your own option portfolio) and student ISAs etc. We are right now emphasizing the community aspect rather than just the equity swaps because for founders, the value is in the network.

Re: FounderPool: A community for founders to share risk and diversify their equity

#33

Post by zackmorris » Tue, Jul 21, 2020, 3:41 PM UTC

This is awesome, the only thing I see missing is that the primary capital of a founder is potential, not equity. That's why banks and other institutions don't typically lend to startups. It would be nice to see that reflected in some way, as something of value that's counted somehow.

Re: FounderPool: A community for founders to share risk and diversify their equity

#34

Post by geoburke » Tue, Jul 21, 2020, 3:42 PM UTC

wtvanhest wrote: post #16

It’s a reasonable idea, but would make a lot more sense for employees. While outside forces impact companies, founders and executives are responsible for outcomes. Employees have little individual power to impact strategy and are more likely the victims of poor management decisions.

The very purpose of the community aspect for founders is to have direct impact on the outcomes of the participating companies.

Re: FounderPool: A community for founders to share risk and diversify their equity

#35

Post by manojdv » Tue, Jul 21, 2020, 3:42 PM UTC

kumarski wrote: post #2

I have questions buzzing through my head. How does this work? If it's this good, why aren't VC's already doing this amongst portfolio founders? How do you catch companies founded at the same time with close valuations to do "shared pools" equitably given all parameters?

This is one of the most founder requested features in YC and also Sam Altmans new fund, Apollo is doing it.

Re: FounderPool: A community for founders to share risk and diversify their equity

#36

Post by asparagus123 » Tue, Jul 21, 2020, 3:44 PM UTC

geoburke wrote: post #17

asparagus123 wrote: post #10

Good timing. as a founder I could use something like this more than ever

Which aspect attracts you most?

de-"riskifying" my startup right now during covid. this would reduce my pressure very slightly and at this point anything helps

Re: FounderPool: A community for founders to share risk and diversify their equity

#37

Post by csentropy » Tue, Jul 21, 2020, 3:45 PM UTC

zackmorris wrote: post #33

This is awesome, the only thing I see missing is that the primary capital of a founder is potential, not equity. That's why banks and other institutions don't typically lend to startups. It would be nice to see that reflected in some way, as something of value that's counted somehow.

Funny you say that. "Deriskinga nd monetizing future founder potential" is literally on my whiteboard.

We are exploring ways to structure the pool with a portion of it in cash/capital. more coming

Re: FounderPool: A community for founders to share risk and diversify their equity

#38

Post by manojdv » Tue, Jul 21, 2020, 3:48 PM UTC

gadders wrote: post #26

Wouldn't you want to pool with companies that AREN'T in the same market area? I would imagine you would want to try and diversify membership so that returns aren't correlated. Also if people are in the same group are in the same vertical, isn't there a risk of competition? Still think it's a good idea though.

Yes and no. Some founders want to diversify in other verticals, but a majority of founders we work with prefer their comfort zone, because they can evaluate startups better. Right now, we are not constraining in anyway and it might evolve to support thematic or diverse pools.

Re: FounderPool: A community for founders to share risk and diversify their equity

#39

Post by La1n » Tue, Jul 21, 2020, 3:50 PM UTC

How much does the pool take? Or better, what are the costs?

Re: FounderPool: A community for founders to share risk and diversify their equity

#40

Post by manojdv » Tue, Jul 21, 2020, 3:52 PM UTC

La1n wrote: post #39

How much does the pool take? Or better, what are the costs?

Right now, there are no costs for participating founders (we cover all legal infrastructure and management costs). In the future, we reserve the right for a 10-20% (depending on pool risk) carry based on pool outcomes.