Index limits lead partners to one vote on exit decisions
Danny Rimer · Danny Rimer: The Biggest Lessons from Missing Snap, Airbnb, Spotify and Facebook | E1166 · 20VC with Harry Stebbings · Jun 17, 2024 · at 39:34
Danny Rimer, Partner at Index Ventures, discusses how the firm prevents lead partners from over-holding successful investments by removing their primary decision authority during exits.
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“I mean, in our winners, it's a question of, first of all, just being disciplined about when to exit, and making sure that we are not sort of falling into the trap of thinking that because they've been successful, they will naturally be more successful over time, and making sure that, ah, we hold the partner who's associated with the company, ah, very honest By insisting that they have a one vote rather than the primary vote on deciding when to exit. So that's a really tough thing, but it's made an enormous amount of difference, you know, from Audien to Datadog to Roblox.”
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