It is an inevitable part of pursuing a high-risk, innovative entrepreneurial path that there is a meaningful probability of failure. Mitigating this risk against the financial impact of this risk is part of the advantage of being in a pool. And the community matters: founders will get to know and trust each other, and perhaps find ways to work together. Founders and employees from one company may wind up working for another, or one company may merge with another. One founder may get guidance from others that helps steer a clear path to success. Ultimately, the purpose of the pool is to benefit everyone from the accumulating social capital of their network, to make us better founders. No matter how good the team and the business idea and execution, the outcome is uncertain. So the other purpose of the pool is to help mitigate financial risk by having everyone share the financial outcome of the group as a whole — with the aspiration that even if most companies fail, as a whole everyone could come out ahead.