I’ve updated the Employee’s Guide to Employee Led SPVs to V4. V4 should be more scalable than the previous iterations which had impressive metrics. I estimate V4 will double or triple many of the core KPIs like average Paid in Capital/SPV and average # of LPs/SPV.
I have also decided to co-lead the SPVs with the employee going forward. The employee and I will evenly split the SPV carry and I will invest my standard $1k in the SPV. My active involvement should boost allocations and paid-in capital per SPV. I am now incentivized to ensure employees and their SPVs dominate startup cap tables according to the Master Plan.
V4 increases my involvement to
Negotiating the allocation with the CEO
Managing the fundraising pipeline
Leading the drafting of any deal related docs (term sheet, memo, etc.)
Handling SPV formation logistics.
Sourcing capital from my syndicate after the employee has sourced all capital from their personal network
I will handle as much of the workload as possible. The employee should ideally only
Contact the accredited investors in their network
Answer company specific questions from investors
Execute a carry assignment agreement after the SPV closes.
The guides will remain free and open source. Employees can choose to lead an SPV without me. I’ll continue to answer their questions and invest in their SPVs on a best effort basis.
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