After serious discussion with a group that want to be the first Charter Founding Members of The Founders’ Club, we have decided to make some important changes to the way they Club works.
1) Existing members each get one vote per person to decide which new applicants get admitted as new members. New applicants that have been endorsed by the Management Company need to get 75% minimum positive vote by existing members to be admitted. Any new member then gets one vote. We become a democracy, control quality and balance as a group. Getting endorsed by the Admissions committee (not the members) will already be a tight control on quality. Everything is confidential.
2) We will close the portfolio once we reach 30 companies represented. Because we close the fund there is no pyramid scheme concern and as such no need to reduce anyone’s member score. You get a score when you join and that determines your cut of any exit. That will never change. After 30 companies any other companies will go into the next portfolio and we start again. This is also good to reward the first companies to join who will make more than the last to join depending on if the first exit happens before the club closes with its 30 companies. The past system was criticized for rewarding the last to join or simply “wait and see”. Now you join or you miss out on the first portfolio or even the first exits and the reward of being one of the first 10 members and getting shares in the Management Company.
Deadline for submitting the signed MOU is still Friday 23 May, 2008. Please note the time frame slide number 17 in the attached PPT deck and revised MOU.
I am asking you to sign the attached MOU and email back to me to formally apply for membership. This is non-binding on both sides. Both parties may still withdraw after you sign and return the MOU to me. Note the Right to Withdraw section in the MOU. Preference will be given to Founders, CEOs and serial entrepreneur angel investors. Feel free to also share this offer to apply to other shareholders in your company, but not your VCs until we discuss that approach.
Also feel free to recommend another company or individual you think we should invite to apply for membership.
We are organizing 2 drinks events in London to encourage discussion among folks that have signed the MOU. Please let me know of the best dates that may work for you in the second and third weeks of June.
It already appears we need to have 2 separate events to accommodate everyone’s busy travel plans.
I can always be reached on my mobile or in the office at any of the numbers below and in the slide deck.
Best personal regards,
——
Andrew C. Romans – CEO & Managing Partner
The Founders’ Club / Georgetown Venture Partners LLP
ar@GeorgetownVentures.com
Mobile: +44.7815.901.066
London: +44.20.7168.3027
Stockholm: +46.8.510.663.99
New York: +1.646.201.5453
Los Angeles: +1.310.728.8186
Fax: +44 870 135 0600
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London W8 5PG, UK
Expansion Capital, Buy-Outs and M&A for Technology, Communications & Media
www.GeorgetownVentures.com
www.the-founders-club.com