FounderPool

De-Risking startup founders by pooling equity

Pool your startup equity with inspiring, VC-backed founders invested in your success. Diversify your financial risk while growing together. Instantly plug into a network of entrepreneurs for help with investor intros, hiring, partnerships, advice & more.
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30 Reviews4.8/5
Chandra Duggirala
Maker
CEO, FounderPool
Hi PH! Hats off to you tech startup founders willing to sacrifice an insane amount of time, money, and social & family life. You dare to defy extreme uncertainty to pursue startup success. Society's progress depends on you! De-risking Founders My co-founders and I have been through the startup grind many times. We’ve experienced the journey filled with extreme uncertainty. We know that there are black swans always stalking you, waiting to destroy years of sacrifice and effort. Pandemics, market crashes, political upheavals, you name it. Unfortunately, when startups fail, most founders can’t just start over. Responsibilities grow, opportunity costs mount, and your risk tolerance goes down fast. Many founders are forced to give up their dream and get back to a 9-5 job. There should be a better way. We believe there is. @george_burke, @manoj_duggirala, and I built FounderPool to minimize the opportunity cost of being a founder. More importantly, it is a community built on incentive alignment, which supports founders and increases the odds of success. FounderPool is a community of founders invested in each other, using an equity swap. You put a percentage of your equity into a pool alongside other founders you respect. All founders in a pool are invested in each other and are incentivized to help each other succeed. The most interesting thing about this is that you get exposure to a bunch of startups not by forking over cold, post-tax cash, but your common stock. Being part of the pool not only diversifies your financial risk, but also instantly upgrades your network. Imagine an army of friends who inspire you, teach you best practices, ready to fight for you, and are strongly incentivized to see you succeed. This is your go-to for investor intros, growth tactics, hiring help, partnerships, advice, psychotherapy :) and more! Since June, we went from concept to 100 companies that have collectively raised ~$1 BILLION, from Pre-Seed to Series D, with many backed by YC, Sequoia, a16z, Founders Fund, Khosla, First Round, etc. The interest we have received humbled us. In July we were on the front page of HackerNews for the entire day with over 200 comments. https://go.founderpool.co/hacker... Our mission is to help entrepreneurs grow together. We’d love PH feedback. If any of you are going through the founder journey, check out https://founderpool.co
Thanks a Billion.
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Larry BiezaFounder of Lyfmap.com
@george_burke @manoj_duggirala @chandraduggirala Guys, How about a launched, but PRE VC category???
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Very cool! This seems pretty useful! I have some questions: 1. Do you plan to have a demo day and help connect startups in pools to investors? 2. What is the minimum amount a company needs to raise to be considered? 3. How many companies per pool? 4. How much equity do companies typically give into a pool?
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Chandra Duggirala
Maker
CEO, FounderPool
@brandon_goldman 1. Great question. We are not an incubator or a fund and we don't do demo days. We will help all founders with connections and investor intros as much as we can, if needed. But the bigger network is the investors in other founders in the pool. We make it easy to share investor pipelines. 2. There is no minimum, but so far, companies have at least raised a seed round from notable investors 3. Depends on the pool composition. Early stage pools will have more, we are targeting ~30-40/peool. Later stage ones have less per pool. There is a crossover as well. 4. We target 5% of Founders' vested equity, so that it provides a meaningful diversification and moves the needle for them when an exit happens in their pool
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Johannes HörteisCo-founder, Coolcals
@brandon_goldman @chandraduggirala regarding 2., what if the startup is self-funded? Perhaps traction can justify a plunge in the pool?
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Chandra Duggirala
Maker
CEO, FounderPool
@brandon_goldman @hurty_ That is a great question. We are working on pooling equity for self funded startups based on metrics other than funding rounds. More to come soon...
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Chris ChampionI am Satoshi
Was fun talking with George and Chandra today about a real deal project
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George Burke
Maker
3 exits. 100 flops. Founder @FounderPool
@keydinnerclub Thanks for the compliment and thanks for having us on your show. (BTW interviewing people on or before PH launch day and then commenting with the video = great idea for distribution and viewership)
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Navin Pareek
Founder, buildastack.com
Great idea and an impressive team. How do you plan to monetize? Percentage of the pool?
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Manoj Duggirala
Maker
co-founder @ FounderPool
@navpar Thank you, We plan to take a membership in each pool.
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Keith LynnDogWagsTail—Product+Leadership Coaching
Interesting idea. Reminds me of: https://twitter.com/BurakYngn/st... Similar to what I said there..it's not unlike how the insurance industry was born, where the risks of few who went to sea (literally) were shared with the many who didn't. I have a (printed) copy of the Titanic's underwriting 1-pager somewhere :L Venture capital isn't unlike the insurance, except VCs love outliers, while insurance underwriters and actuaries don't. FounderPool is a fascinating concept; in of itself I think it's predicated more on VC portfolio theory rather than insurance. How do the pools get matched? Edit: just watched your video. You've pretty much answered that—awesome approach to start with.
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George Burke
Maker
3 exits. 100 flops. Founder @FounderPool
@lynnastyie Yup. Early insurance were mutually self-forming pools against catastrophe. But unlike the insurance space, the math here works under the Power Law, where most will fail and only a few will be breakout winners, supporting the rest. It's not downside insurance but more like upside insurance.
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George Burke
Maker
3 exits. 100 flops. Founder @FounderPool
@lynnastyie And regarding Burak Yenigun... https://twitter.com/geoburke/sta...
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Keith LynnDogWagsTail—Product+Leadership Coaching
@george_burke I only know this stuff as have a degree in risk and insurance from way back but these days more interested in product, startups and venture. Still a lot of shared concepts between them. Re power law, shows up everywhere doesn't it! I was a bit sloppy above, meant power law and portfolio theory. On ya, I did see Burak Yenigun mentioned you guys in his post when I went looking back on it! Hope the rest of the day on PH goes well.
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George Burke
Maker
3 exits. 100 flops. Founder @FounderPool
@lynnastyie Love the conversation.
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