The committee
A committee sets each participation.
Whoever brings something to Volcano receives a participation in the startup born from it. A committee sets it, with the logic of the founders: whom to bring aboard, with what participation and with what role.
3 min read
The reason
Why it exists.
The eight doors of capital declare a participation range for each type of contribution: a problem, an idea, a technology, competencies, a network, capital, tax burden, relocation. Someone has to set the exact point within the range, case by case, weighing what the contribution has meant for the project: not only in money, but also in intellectual property, in organisation, in competencies, in relationships. That someone is the committee.
The method
How it decides.
The committee works like the founders of a startup: it decides who to bring on board, with what stake and in what role. It does not follow a fixed formula. In each case it uses the methods it considers most suitable among those recognised in the startup world for valuing contributions and young companies: the Berkus method, comparison scorecards, dynamic splits by contribution, and the methods for valuing intellectual property.
Two regimes order the work. One-off contributions (an idea, a technology, capital) are valued once and the participation is fixed on day one. Ongoing contributions (competencies, work, organisation) mature by milestones, at the pace of the phases of the path.
The guarantee
Why it can be trusted.
The members of the committee belong to the Volcano group and hold participations in the startups. Precisely for that reason their interest coincides with the balance: overpaying a contribution dilutes everyone else; underpaying it loses a capable person. The committee has an interest in bringing aboard and keeping in the group capable, satisfied people, and at the same time it must respect the weights among those who already participate: it performs a guarantee function in everyone's interest.
The rule
The final rule.
The committee makes its proposal: participation and role. The contributor accepts it, or nothing happens: the contribution not handed over remains theirs, and the door stays open. If you have something to bring, start with tell us your problem or with join us.
Who is behind these decisions
John F. Kennedy, 1962