CB Insights - 50 employee maximum

Hi there, 
 

I posted this on Twitter and it kinda blew up in nerd/founder circles, so I'm sharing it here. I should probably say "blew up" in air quotes, cuz this is some nerdy biz-building isht.
 

The idea is a new startup model to build cos with revenue of $10M-$25M.

Here are the constraints:

• Never have >50 on the team

• Everyone takes profit distributions (eventually)

• No outside capital

• Product quality + automation to keep <50

Anyone building cos with headcount constraint?

What do ya think?

Some things that need to be sorted out:

• How is equity handled?

• How are profit distributions made? Formula based on tenure?

• How are decisions on reinvestment vs. distribution made?

• What if someone isn’t holding their own at some point? What happens to their profit distributions?

Thoughts? Ideas? Anyone doing this?

Will share what readers share in a coming newsletter.

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