You don't have to stake your life to build a startup. Junto helps early stage founders take smart risks and diversify their outcomes by pooling future earnings with founders they trust. Here's how it works:
Invite founders you know and trust to pool a portion of your future earnings with.
Set a Number, i.e personal liquidity event threshold for all members of the Junto.
Once one of you hits the Number, the Junto pools earnings and distributes them equally to all members.
Create your Junto. It'll only take a minute.
Sharing a small percentage of your wealth with equally talented, ambitious founders is a way to diversify your outcomes in case your company fails. Unless you're already from wealth or your company is beyond the startup phase (in which case Junto is admittedly not for you), most founders do not have access to a safety net while launching their first companies. They're thus left exposed to innumerable risks (career, healthcare, income, etc).
Every founder is another Bill Gates in waiting. Thing is, Bill had a safety net (wealthy family). As did Bezos (parents invested $300k in Amazon), as did Zuckerberg (dad put first money in Facebook), as did Evan Spiegel (rich parents), as did Elon (dad invested to get Zip 2 off the ground). The fact is, regardless how good you are, most startup success depends on timing. Uber does not work before GPS and the smartphone. As a founder, one of your core skills is being smart about risk. That means that while some exposure to failure is necessary to do great things, an equally small amount of diversification enables great founders to take more swings when they get timing wrong. That's what the best founders do.
Junto uses a new financial device called ISAs (Income Share Agreements). It is a financial product which aligns incentives between parties. Creating a Junto with other founders means you are investing in each other. In return, founders take a share of future winnings once you all hit your Number, (for instance, a personal liquidity event greater than $1M). If all members of your Junto hit the Number, the pool is activated. If none do, the pool remains inert, so you pay nothing.
The beauty of Junto is that you choose who you want to pool with. We recommend that you only invite founders you know well enough to ask a favor or or do a favor for and whom you respect as talented and ambitious entrepreneurs.
Since Junto is currently a bare bones MVP, you can fill out a form specifying the details of your Junto. We will then email you with an official Income Share Agreement document containing the details. You can then share the document with your founder peers who are willing to join, and voila, you're in business. We will soon build out a suite of tools to help you manage your Junto frictionlessly.
The legal structures currently in place allowing founders to pool equity can get incredibly complex. Income Share Agreements, though new, do not impact a startup's cap table and employee pool, which is why we think they're a better place to start. Eventually, we plan on simplifying the equity swap between founders.