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The last thing we want to have happen is to make a founder uncomfortable or to misalign their interest. For our fund to do well, we need every company to do wel
by kentgoldman 12y ago
The last thing we want to have happen is to make a founder uncomfortable or to misalign their interest. For our fund to do well, we need every company to do well.
The amount of carry involved is interesting but in no way will misalign a founder's interest in their own company doing well. Their interest in seeing their own company perform is many more orders of magnitude higher than the shared carry.
The other thing to consider is that the shared carry will give the founders of other companies in the portfolio added incentive to help. This help would benefit every shareholder.
- 7Figures2Commas 12y ago> For our fund to do well, we need every company to do well. That's an odd statement. Even in the most successful of funds, the vast majority of companies return modest amounts of capital or no capital at all. The general rule is that most of a fund's overall return will come from ~20% of the portfolio companies.
- sharemywin 12y agoBased on the article instead of being alone it's allowing founders to work as a network. Pass on opportunities, etc. YC has a large founder network which benefits it's companies.