This is day 1 of 4 covering features of the formal collective membership we just announced.
One of the key activities of Baukunst is investing in exceptional creative technologist founders at company inception. In year one of Baukunst, the collective was the #1 source of introductions to founders that we ended up backing. To honor the axiom “Ecosystem > Egosystem” we are formalizing this relationship in a way that collective members can participate in the financial upside of Baukunst Fund I to honor this work.
All active members of the collective who source an opportunity that Baukunst invests in will receive financial upside in the form of deal-by-deal synthetic carry on that investment to honor their ongoing contribution to the collective.
We are sizing the shared upside in accordance with top of market comps. Our initial investments typically range from $500k-$2M in companies at a pre-seed stage (company formation to early traction). So for example, at a $1B exit, this has an opportunity to translate into roughly $1M in upside for the collective member who sourced the investment. Baukunst has a 10-year fund horizon with opportunities to recycle capital. We are long term thinkers, and almost always encourage founders to go long.
There are components of inspiration from how other scout programs and venture partners have worked in the past, but to our knowledge, this is the first program of its kind that offers uniform financial benefits to a collective on this scale and specific philosophy. Since every founder in our portfolio receives membership in the collective, all Baukunst portfolio founders automatically have the opportunity to participate in this benefit.
Our intent is for this agreement to honor the contributions of the collective and create a self reinforcing ecosystem that will continue to grow and invest in itself.
Next, we’ll talk about Studios, our approach to collective learning.