How much is enough: Calling in Rich
July 26, 2006
Each year I get together with a group of business people (i.e. friends) that I met in YEO in the late 90’s for a retreat (typically in Vegas). Over the years we have talked about how much is enough. I was reminded of these conversations when I read Fred Wilson’s post on “Calling in Rich.”  How much is enough and calling in rich are really two different concepts, but both are interesting. Fred’s point, and it is a good one, is that truly calling in rich, i.e. leaving with little or no notice, is a very bad idea. My question is how much is enough to call in rich?
In 1999 many of us felt as thought our “enough” number would be north of $50MM. By 2003 most of us would take $10MM. It is now 2006 and many members of the group have hit the $10MM mark, but none of them have “called in rich.” It seems as our resources have grown so to have the number of projects we are each involved with. I don’t know anyone who is calling in rich at the $10MM number. From my perspective the money just isn’t that enjoyable - the business is what I enjoy doing.
Fred’s perspective is that of a venture capitalist where the guy “calling in rich” likely works for someone - the board or the VC’s handpicked CEO. I can imagine sitting on $10MM in liquidity from a company I previous ran, getting fed up with the new direction of the business and “calling in rich.” I certainly would not be retiring, but getting ready to start something new. Notice is good, but giving 12-18 months as Fred suggests seems excessive to me. How about 90 days?
My suggestion to VC’s who don’t want liquid founders to call in rich? Make sure they are happy, doing what they enjoy and getting paid well. If your rich “employees” are miserable expect the “Hey, I just realized that I am rich, so I won’t be in anymore” call. As opposed to the:
