the hive co-working space

The Hive is a members’ coworking space and creative community based in the dynamic Wan Chai area of Hong Kong. 

NEST is a hands-on investment incubator focusing on scalable consumer businesses in the lifestyle space. Our vision is to develop Hong Kong as a global hub in the fields of entrepreneurship and creativity to enable start-up businesses to thrive.

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Invest Hong Kong is the department of the Hong Kong Special Administrative Region (HKSAR) Government established in July 2000 to take responsibility for Foreign Direct Investment and support overseas and Mainland businesses to set up or expand in Hong Kong. It provides free advice and customised services to help businesses succeed in Hong Kong's vibrant economy.

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Bridges Executive Centre has been in business for 10 years and helped over 8,000 clients incorporate and grow their business in Hong Kong with a knowledgeable team fully versed in different corporate aspects like company formation, company maintenance (e.g. company secretary, Annual Return, BR renewal), accounting, audit arrangement, tax filing and tax efficiency planning, investment visa, etc., covering every need of a start-up from basic to advanced. Their helpful staff, fast turnaround time, fair pricing and full range of maintenance support tell why you will love them.

maurice wm lee solicitors

Maurice WM Lee Solicitors are a Hong Kong law firm focused on legal services relating to business, finance, trust, investment, wealth management, creative industries and legislative lobbying.  Our experienced lawyers also provide legal services in key areas such as media, entertainment, dispute resolutions and China legal services.

 

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The Asian Venture Capital Journal (AVCJ) is the leading source of information on Asian private equity, venture capital and mergers and acquisitions. Based in Hong Kong, AVCJ has been providing editorial coverage, quality data and intelligent analysis via its Asian Venture Capital Journal weekly magazine to the Asian private equity industry since 1987. AVCJ is also the organizer of the highly acclaimed AVCJ Private Equity & Venture Forum series of conferences in the world’s leading financial centers including Tokyo, Hong Kong, Singapore and New York. The AVCJ Forums series regularly receives strong support and participation from the industry’s leading professionals and firms, including GPs, institutional investors and advisors. 

What is the Bonus Pool?

Posted by Adeo Ressi on 2011-02-10

Below is an answer that I recently gave to a question about the Bonus Pool. It is not uncommon for applicants to misunderstand the Bonus Pool and therefore look at the Pool like a cost, rather than an innovative benefit. I hope that the answer is helpful.

If an enrolled Founder chooses to join the Bonus Pool, then the Founder contributes 3.5% of their company in the form of warrants to a Bonus Pool. In exchange, the Founder receives a share in the cash returns of the Pool.

If one Graduate sells for $200 MM, this may return $4 MM to the Bonus Pool after some dilution and purchasing the warrants. In such a circumstance, another Graduate from the same semester might receive a Bonus Pool check for $80,000. This return is not an investment. It's a personal bonus. It's cash to use for anything you want, from groceries to servers.

All Founder Institute stakeholders share in the Bonus Pool, including local Mentors and local Directors, and there is a separate Pool for each graduating semester. Founders get 30% of the Pool, Mentors get another 30%, local Directors and partners get 25% and the Institute keeps 15% as a long-term management fee. The indivual portion that each Mentor receives depends on the anonymous ratings they receive from the Founders. The point here is that everybody's interests are aligned in creating the best possible pool of companies. 

Graduates share in the upside from the success of their peers through the Bonus Pool. This creates an unusual level of camaraderie. It also reduces the risk of creating a startup. Any one startup has a high chance of failure, but there is much greater odds for success across 10, 15 or 20 Graduates. You can fail and still see upside from your efforts in the Institute.

Ultimately, the 3.5% and the Bonus Pool are a benefit that is unique to the Founder Institute. Instead of selling equity for a few thousand dollars, you are personally participating in the long-term success of your peers. You get upside once reserved for savvy investors.

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