Being a founder is hard. We know this, but it still bears repeating.
The long days, the deferred salaries, the family sacrifices. The credit cards, the postponed holidays, the missed school plays. All endured in the hope of a future payday that often sits a decade away, shimmering somewhere on the horizon.
And yet many founders are already sitting on significant paper wealth – equity that looks impressive on a cap table but does nothing to relieve the day-to-day pressures.
The statistics tell their own story:
- 54% of founders have burned out in the past year
- 61% have considered quitting
- 88% say the constant pressure leads to worse decisions
It’s a broken model. And we need to fix it.
Challenging the Taboo
There has always been a taboo around founders releasing equity before the final exit. Conventional wisdom whispers that any attempt to “take money off the table” is a sign of weakness or lack of commitment.
But anyone who has lived the founder journey knows how unrealistic that is. As an exited founder (now building again with Venture Comet) I know the feeling of staring at an exit that may be years away, while daily life becomes increasingly stretched.
At some point, founders quietly ask themselves the forbidden question: is it worth it?
And here’s the truth: there is nothing more motivating than success itself. Small, controlled releases along the journey aren’t a cash-out. They’re oxygen. They give founders breathing room, restore perspective, and – crucially – make it more likely that the ultimate exit will be achieved.
The Logic of a NIBL
That’s why we are introducing NIBL (Nominal Incentive-Based Liquidity).
NIBL is a framework that allows founders and early angels to release a small, capped portion of their equity value once the company has clearly grown.
The rules are strict by design:
- Maximum 5% of personal equity released per event
- Maximum one event per year
- Maximum £100k per event
- Eligibility: founders after 2.5 years in the business; investors after 3 years (once EIS relief has been secured)
Guardrails, not loopholes.
Let’s take a common scenario:
You’ve just raised at a £4m valuation. You own 30%, so on paper your stake is worth £1.2m. After years of sacrifice, is it really unreasonable to release £60k (5%) – to pay off debts, take a family holiday, create a modest buffer – while leaving £1.14m intact for the bigger exit?
I don’t think so. In fact, I think it’s essential. Because a founder under relentless personal strain is less likely to make clear, bold, long-term decisions.
Investors Benefit Too
This isn’t only about founders.
Angels and early-stage investors are equally trapped in the illiquidity of the system. Most know they are tying up capital for seven to ten years – and often longer. The UK secondary market is still anaemic, in part because SEIS/EIS only applies to newly-issued shares.
With NIBL, angels too can release a portion of their gains after the three-year holding period, while keeping the majority invested for the upside.
Guardrails and Structure
Secondary markets have always existed. But without structure, they are messy: fragmented cap tables, uneven information, and damaging perceptions.
NIBL solves this with discipline. Transactions happen under strict limits and transparent rules, ensuring that:
- Founders do not lose control or voting rights
- Cap tables remain clean
- Investors see that releases are modest, rule-bound, and aligned with growth
And to make the process seamless, NIBL will run on the Venture Comet platform. By building on existing capabilities to automate management information, scorecards, validations and due diligence, the entire process can be frictionless: transparent, efficient, and credible.
In parallel, the UK Government is moving in the same direction with its PISCES framework, introducing regulated trading windows for private company shares. The tide is turning.
A Call to Action
We’re developing NIBL now and will launch in January 2026. Between now and then, we’re consulting with founders, investors, angels, and industry professionals to ensure the model is fair, practical, and robust.
Because something has to change. The current game is stacked too heavily against founders, and too much life is sacrificed needlessly.
Founders deserve a way to win along the journey, not just at the distant end of it. And if we get this right, it won’t just help founders – it will motivate them, strengthen companies, and improve outcomes for everyone.
If you believe founders shouldn’t have to wait a decade for a taste of success, join us. Register your interest, and be part of building a fairer, stronger ecosystem.