top | item 19380102 Fixing Founder Scarcity: Founders' Mutual Fund 4 points| demircancelebi | 7 years ago |medium.com 2 comments order hn newest cjbenedikt|7 years ago Sounds like this: https://pitchbook.com/news/articles/kindred-spirits-meet-the... byng|7 years ago Definitely 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
cjbenedikt|7 years ago Sounds like this: https://pitchbook.com/news/articles/kindred-spirits-meet-the... byng|7 years ago Definitely 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
byng|7 years ago Definitely 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
cjbenedikt|7 years ago
byng|7 years ago
£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