048 | The Great Founder Secondary Debate | Bulls vs Bears in Venture Capital
Description
About This Episode
In this episode, we explore the controversial topic of founder secondaries in venture capital. Through a spirited debate between the "bull" and "bear" perspectives, we dive deep into the nuances of allowing founders to sell shares before an exit and how it impacts startup incentives and outcomes.
In This Episode
The bull argument for founder secondaries and why they can be beneficial
The bear case against secondaries and potential misalignment of incentives
How secondaries relate to founder burnout and re-energizing long-term founders
Balancing secondary sales with maintaining founder ambition and commitment
Timestamps
(00:00 ) - Introduction to founder secondaries
(01:41 ) - Setting up the bull vs bear debate format
(03:18 ) - The bear argument against founder secondaries
(13:19 ) - The bull case for allowing founder secondaries
(25:16 ) - Discussing appropriate amounts for secondaries
(29:00 ) - Challenges of secondaries during down markets
(34:56 ) - Examples of founder re-investment as a positive signal
(38:30 ) - Concluding thoughts and calendar check-in
Resources or Companies Mentioned
Building Connected: Construction bidding platform acquired for $275 million
Connect With Us
Practical Nerds Website: https://practicalnerds.com/
Subscribe to the Newsletter: https://www.linkedin.com/newsletters/practical-nerds-7180899738613882881/
Foundamental: https://www.foundamental.com/
Patric Hellermann: https://www.linkedin.com/in/aecvc/
Shub Bhattacharya: https://www.linkedin.com/in/shubhankar-bhattacharya-a1063a3/
#FounderSecondaries #StartupIncentives #VentureCapital
United States
