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Comment by kumarski | Hacker News Reader

I have questions buzzing through my head.

How does this work?

If it's this good, why aren't VC's already doing this amongst portfolio founders?

How do you catch companies founded at the same time with close valuations to do "shared pools" equitably given all parameters?

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1. Pool construction happens by peer selection. All participating founders submit rank order lists and we construct pools using Gale-Shapley algorithm (a version) 2. I wondered ht3 same. A few like FF have thought about it, but they have a financial conflict between preferred and common (LP obligations) the makes it complicated to do. With founderpoool, they can 3. YC and like. Eventually, we hope this becomes the standard model for all founders when they start

This is one of the most founder requested features in YC and also Sam Altmans new fund, Apollo is doing it.

It’s been done before: http://ebexchange.com/

This is secondary market liquidity, yes? If so, there's unfortunately no demand till series C, and the board needs to allow secondary sales, which competes with the company's own ability to raise capital. We're seeing VCs at later rounds include cash payouts to founders to dissuade secondary market activity.

Also it's not either/or. Participating in a pool does not block the founder from liquidating shares on the open market.

Yeah I guess it’s changed. https://techcrunch.com/2008/04/16/eb-exchange-funds-provides...

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