What is a pool?

A pool is a community formed with the common goal of supporting each other and building a stronger future.

In a pool, each individual contractually pledges a small portion of future earnings — above a hurdle — to the shared pool. Pool contributions are generally distributed evenly.

Pool with those you believe in. When one of you succeeds, everyone succeeds.

EXAMPLE

POOL STORY

Keith

Jane

Grace

Pool Formation

Keith, Jane, and Grace join a pool together and come to an agreement on the following key pool terms: annual hurdle, contribution percentage, and duration.

The terms agreed upon are:

Annual Hurdle: $120,000

Contribution Percentage: 10%

Duration: 15 years

In addition to agreeing on these terms they have entered into a full pooling agreement.

ANNUAL HURDLE

The point at which you begin contributing a piece of your eligible income into a pool. Everything below that number you keep.

CONTRIBUTION PERCENTAGE

The percentage of eligible income you contribute above the hurdle.

DURATION

The number of years your Pando will exist.

Zooming in… A Year Snapshot

This year, Grace makes a very nice bonus on top of her impressive base salary. Her company is doing well, and her contributions to its success this past year really paid off.

Keith and Jane are at the early stages of founding their respective companies and are taking a founder’s salary to cover living expenses.

Grace $450,000

Keith $75,000

Jane $75,000

Contributions

Everyone in the pool keeps their first $120,000. So, only Grace will be contributing this year. Her eligible annual income is $450,000, $330,000 of which is above the annual hurdle. Based on her contribution percentage, Grace's total contribution that year comes out to $33,000.

Grace's Pool Contribution Breakdown

Eligible Income $450,000

Annual Hurdle $120,000

Eligible Income Net of Hurdle $330,000

Contribution Percentage 10%

Contribution for that Year (i.e. 10% of $330,000) $33,000

Grace

Distributions

Disclaimer: Pando takes a portion of the pool which varies based on selected set up fee. Contact us for more pricing info.

Pando takes a small fee, and the remainder is split amongst the three. This leaves each of them with a pool distribution of $10,450. They receive this cash directly upon distribution.

PRE-POOL POST-POOL

Grace $450,000 $427,450

Keith $75,000 $85,450

Jane $75,000 $85,450

ZOOMING OUT... IN RETROSPECT

THE POOL'S CUMULATIVE 15 YEARS