Carry Over Salary Alignment

Shaan describes his approach to building an angel investing team where he compensates them through profit sharing (carry) instead of salaries, creating a long-term aligned incentive structure.

Key Points:

• Compensation Structure:

  • No upfront salaries for the team
  • Team members receive a portion of Shaan's 20% carry (profit share)
  • Focused on long-term upside rather than immediate payment

• Team Member Benefits:

  • Learn about investing while maintaining other income sources
  • Build track record in venture investing
  • Potential for significant returns in ~5 years
  • Gain experience to potentially start their own funds

• Strategic Advantages:

  • Reduces immediate cash burn
  • Creates long-term alignment
  • Allows team members to maintain other income sources
  • Builds investment track record for future opportunities

• Economics:

  • Managing $4M per year fund
  • Team members make money from other sources while building portfolio
  • Investment returns pay off in approximately 5-year timeframe