Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

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

founderpools.com

Post reply on HN
Print view View original

91–100 of 207 posts

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

#91

Post by geoburke »

Negitivefrags wrote: post #83
landryraccoon wrote: post #66

Earlier quoted context omitted.

Doesn't that reasoning lead to saying that founders shouldn't get a salary from investors either (or only make minimum wage), since if they really believed in their idea they would be happy with equity and not money? After all, a salary means founders would be trading future risky returns for immediate low risk cash.

Founders really shouldn’t get a salary, or if they do, only the minimum to live. Founders getting any more than just what they need to live incentivises people to raise money for personal gain rather than raising money to build a company. It also really blurs the line between founders and employees. How can a founder justify taking a salary at the same or even higher level than an employee while also having a huge sh…

There are obviously two schools of thought here, but IMO a founder who is at least financially comfortable will make better long term decisions and take actions influenced less by personal stress.

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

#92

Post by csentropy »

richardwhiuk wrote: post #90

Why are you splitting sectors into different pools? Surely that reduces the diservification of risk, and increases the overlap between the companies, which creates blurred incentives?

Founderpool is based on peer selection. The belief is people are better able to pick companies in their vertical better.

But it is true that larger pool across sectors is more diversified

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

#93

Post by landryraccoon »

Negitivefrags wrote: post #83
landryraccoon wrote: post #66

Earlier quoted context omitted.

Doesn't that reasoning lead to saying that founders shouldn't get a salary from investors either (or only make minimum wage), since if they really believed in their idea they would be happy with equity and not money? After all, a salary means founders would be trading future risky returns for immediate low risk cash.

Founders really shouldn’t get a salary, or if they do, only the minimum to live. Founders getting any more than just what they need to live incentivises people to raise money for personal gain rather than raising money to build a company. It also really blurs the line between founders and employees. How can a founder justify taking a salary at the same or even higher level than an employee while also having a huge sh…

Founders that do that don't need and shouldn't take venture capital money, so the opinions of investors scarcely matter in that case.

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

#94

Post by manojdv »

richardwhiuk wrote: post #90

Why are you splitting sectors into different pools? Surely that reduces the diservification of risk, and increases the overlap between the companies, which creates blurred incentives?

We are not splitting pools into themes. It was used as an example in the website. Founders get to choose the companies, so if all space tech companies want to band together, they can form a pool, its an option.

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

#95

Post by bananaface »

mkolodny wrote: post #85
manojdv wrote: post #15

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…

Does a startup's equity in the pool vest over time? I'd be concerned about a startup joining the pool, and then immediately dissolving their company.

Would vesting help? Instead of dissolving you just... wait. Pretend to build.

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

#96

Post by csentropy »

philsnow wrote: post #86
Negitivefrags wrote: post #83

Earlier quoted context omitted.

Founders really shouldn’t get a salary, or if they do, only the minimum to live. Founders getting any more than just what they need to live incentivises people to raise money for personal gain rather than raising money to build a company. It also really blurs the line between founders and employees. How can a founder justify taking a salary at the same or even higher level than an employee while also having a huge sh…

Founders getting only the bare minimum to survive seems like a good way to exclude certain classes of people -- those without any assets to fall back on, those with families, to name a couple -- from becoming successful founders.

Exactly correct

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

#97

Post by bananaface »

Negitivefrags wrote: post #83
landryraccoon wrote: post #66

Earlier quoted context omitted.

Doesn't that reasoning lead to saying that founders shouldn't get a salary from investors either (or only make minimum wage), since if they really believed in their idea they would be happy with equity and not money? After all, a salary means founders would be trading future risky returns for immediate low risk cash.

Founders really shouldn’t get a salary, or if they do, only the minimum to live. Founders getting any more than just what they need to live incentivises people to raise money for personal gain rather than raising money to build a company. It also really blurs the line between founders and employees. How can a founder justify taking a salary at the same or even higher level than an employee while also having a huge sh…

I mean it's not really about "should" - if I'm a founder, I'll go with the best offer from an investor. If one wants to offer me a larger salary, that will factor into my decision.

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

#98

Post by geoburke »

bananaface wrote: post #95
mkolodny wrote: post #85

Earlier quoted context omitted.

Does a startup's equity in the pool vest over time? I'd be concerned about a startup joining the pool, and then immediately dissolving their company.

Would vesting help? Instead of dissolving you just... wait. Pretend to build.

Good way to get oneself kicked out of the pool before fully vesting.

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

#99

Post by bananaface »

geoburke wrote: post #98
bananaface wrote: post #95

Earlier quoted context omitted.

Would vesting help? Instead of dissolving you just... wait. Pretend to build.

Good way to get oneself kicked out of the pool before fully vesting.

How do you legally kick them out?

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

#100

Post by geoburke »

lachyg wrote: post #78
csentropy wrote: post #53

Earlier quoted context omitted.

It is a complex structure under the hood. There is a master LLC, holding c corp and an investment advisor. Tax implications for the founders are similar to their founder stock obligations, when liquidation happens

Is contributing to the fund a taxable contribution? I would assume so since it's a diversifying event.

Contribution is done through a note. Not taxable until the transfer of shares upon some liquidity/exit event in the future.
Post reply on HN