
Fixing Founder Scarcity: Founders' Mutual Fund - demircancelebi
https://medium.com/@ValueInvestor/fixing-founder-scarcity-ab0cbb66c69f
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cjbenedikt
Sounds like this: [https://pitchbook.com/news/articles/kindred-spirits-meet-
the...](https://pitchbook.com/news/articles/kindred-spirits-meet-the-vc-firm-
giving-startup-founders-skin-in-the-game)

~~~
byng
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](http://reactionwheel.net/2015/06/power-laws-in-venture.html)

