1) Pools sizes are not fixed number and more over, founders can invite other companies to existing pool on a rolling basis
2) We have done modeling, obviously selection is the top determinant of payouts (20% avg. success rate vs 40% success rate) but bigger pool sizes ensure potential for a breakout company.
Happy to share if interested, contact us at contact at founderpools.com
> bigger pool sizes ensure potential for a breakout company
Yes, but the payout gets distributed among a larger number of companies. Increasing the pool size lowers the variance, but the expected value remains the same. Lower variance might be desirable for some people (more predictability -- at the limit it's as if you're investing 1% of your equity into an "ETF" of early-stage startups), whereas some people might prefer higher variance (higher potential upside if they join a pool with the next Stripe).
My concern is that if founders contribute 1% of their equity (not 1% of the entire company at exit), the expected value itself is quite small -- on the order of $150K under reasonably optimistic assumptions -- for something like FounderPool to make sense.
On the flipside, increasing the 1% by an order of magnitude might make more sense from a utility maximization point of view, but even less sense from an emotional standpoint.
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.
We cover all legal infrastructure and management costs. In the exchange, we reserve the right for a 10-20% (depending on pool risk) carry based on pool outcomes.
Right now, there are no costs for participating founders (we cover all legal infrastructure and management costs). In the future, we reserve the right for a 10-20% (depending on pool risk) carry based on pool outcomes.
Yes and no. Some founders want to diversify in other verticals, but a majority of founders we work with prefer their comfort zone, because they can evaluate startups better. Right now, we are not constraining in anyway and it might evolve to support thematic or diverse pools.
