Founder Circle is an initiative to give portfolio type benefits (that VCs enjoy,) to founders and thus protect some downside risk.
Founders go big (big cash exit) or go home (empty handed!).
For a part of their stake, we give founders a portfolio type risk-return profile
This protects the personal financial situation of founders whose startups fail, and for other founders whose startups succeed, it gives a portfolio return (like an LP/ investor in a VC fund).
We talk to the founders and Founder signs the agreement
If his startup shutsdown, Founder remains invested until exits from other startups get distributed – in which case can also get the proportionate profit share. We assist in the entire process of shutdown as well, freeing up the mindspace of the founder.
If his startup succeeds, he gets treated like an LP, and gets proportionate share of the profits. ie his Rs 50L worth of shares contributed initially is treated as Rs 50L capital/ LP contribution.
This also creates a community of founders, who are vested in each other’s success – can share learnings, help each other in various ways.
All is well when things are up in a Startup.
When sometimes things go wrong (external risk – regulatory change, large co competition/ inability to fundraise etc), and startup shuts down, founders face the hard reality – career gap, financial stress both at the same time. Years spent building the startup comes to nothing.
drop a whatsapp message to Hari at +919600166665. This is an invite only program currently.