One of the most exhilarating but also most difficult things about creating a start-up from scratch and trying to nurture it to success is the feeling that everything is tied up in your company - not just your heart and soul, but all your financial hopes too.
At least on the financial side, First Round Capital is trying to help entrepreneurs stressed out by “all-eggs-in-one-basket” syndrome - it has announced a pooled fund for founders in its portfolio companies.
The founders of First Round companies will be able to contribute a small portion of their company stock to the First Round Capital Entrepreneur’s Exchange fund and in return will receive an interest in all the other companies that participate. When any one of the companies in the fund reaches an exit, all the entrepreneurs involved will benefit.
To read the full, original article click on this link: Sometimes, Even Risk-Takers Need A Way To Hedge Their Risks - Venture Capital Dispatch - WSJ
Author: Tomio Geron
