Enrich the Operators: Employee Led Syndicates
Get 10x-20x more equity upside on your options without vesting, tying up exercise cash, and all the tax hassles associated with more ISOs? How?!
It should also go without saying:
let me know how i can be helpful @vcstarterkitwhen investing in startups, it’s important to invest in good ones and not bad ones https://t.co/wjTUETESkN
I am drafting a detailed open source guide that will build on the initial thread above by:
Moving the fundraising step to before the ask for allocation
Detailed instructions and scripts for how leads can fundraise from their networks
An Airtable template that SPV leads can clone to manage fundraising
A FAQ for leads and a FAQ for potential SPV investors
A public legal paper/opinion that states whether the employee SPV lead needs to be accredited. SPV leads may not need to be accredited to receive carry though they would need to be accredited to invest in the SPV. If true, then this may be the start of a veritable mass movement.
A directory of fund formation/admin lawyers that leads can engage to ensure that everything works for their unique situations.
A spreadsheet that potential leads can use to model exit scenarios
Why an open source guide?
Ideally this guide becomes the blueprint for machines that produces PayPal grade mafias. The below will happen faster if more operators become mind-bogglingly wealthy from working on early stage ventures and correspondingly more bold in future endeavors.
Does anyone care?
Since publishing the initial tweetstorm:
Multiple people at hot VC backed companies have DMed me asking for further information about how to negotiate and fill allocations
Paid newsletter subscribers have gone from 0 to 7 (thank you paid subscribers!) generating MRR of $35.
One person paid a year in advance. *You* are the hero the world needs in these uncertain times and have my everlasting gratitude.
My Twitter followers have doubled from ~500 to ~1k
Total newsletter subscribers have jumped from 157 to 240
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