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Fixing Founder Scarcity: Founders' Mutual Fund

medium.com

4 points by demircancelebi 7 years ago · 2 comments

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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

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