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I had a deal worth $2M go to $0
- (out of a fund that& #39;s $500M so a small trade BUT STILL!)
- The sneaky side of VC no one shares.
Founders can be legends or ahem, not.
My totally un-PC breakdown of red flags I look for (& watch for in myself - all human):
- (out of a fund that& #39;s $500M so a small trade BUT STILL!)
- The sneaky side of VC no one shares.
Founders can be legends or ahem, not.
My totally un-PC breakdown of red flags I look for (& watch for in myself - all human):
#1 Carrera marble = cashflow negative
Things were going
https://abs.twimg.com/emoji/v2/... draggable="false" alt="đ" title="Tabelle mit AbwĂ€rtstrend" aria-label="Emoji: Tabelle mit AbwĂ€rtstrend"> on a port co.
Flew to LA to see if we could restructure & save.
Pulling up, I start to worry. Startup w/ $2M ARR had an office FB would envy.
Fing custom cappuccino makers (ruh roh).
Things were going
Flew to LA to see if we could restructure & save.
Pulling up, I start to worry. Startup w/ $2M ARR had an office FB would envy.
Fing custom cappuccino makers (ruh roh).
Walking on the echoing marble I realized:
The nicer the digs, the less the margin.
Lesson: keep your strappings like your cap stack, simple.
The nicer the digs, the less the margin.
Lesson: keep your strappings like your cap stack, simple.
#2 Watch out for Narcissus
I walk into the founder& #39;s office. The walls are covered in photos.
As I lean closer I realize, they aere all of him.
One is a self-portrait.. oil painted *le cringe.
I walk into the founder& #39;s office. The walls are covered in photos.
As I lean closer I realize, they aere all of him.
One is a self-portrait.. oil painted *le cringe.
Framed fame = future shame.
Lesson: keep your cover stories to yourself (I mean who even posts those?https://abs.twimg.com/emoji/v2/... draggable="false" alt="đ€„" title="LĂŒgendes Gesicht" aria-label="Emoji: LĂŒgendes Gesicht">)
Lesson: keep your cover stories to yourself (I mean who even posts those?
)" title="Framed fame = future shame. Lesson: keep your cover stories to yourself (I mean who even posts those? https://abs.twimg.com/emoji/v2/... draggable="false" alt="đ€„" title="LĂŒgendes Gesicht" aria-label="Emoji: LĂŒgendes Gesicht">)" class="img-responsive" style="max-width:100%;"/>
#3 Self Proclaimed Visionaries
Oh lord, if you have that on your linkedin profile we prob won& #39;t be buds.
As we& #39;re poring over #& #39;s to see how to stop the bloodbath,
I ask Q& #39;s about burn, cash on hand etc.
Founder has NO idea of the #s,
Oh lord, if you have that on your linkedin profile we prob won& #39;t be buds.
As we& #39;re poring over #& #39;s to see how to stop the bloodbath,
I ask Q& #39;s about burn, cash on hand etc.
Founder has NO idea of the #s,
Finally, he says exasperated, "I& #39;m the visionary, our CFO handles the #& #39;s."
I slowly lower my face into my hands.
I slowly lower my face into my hands.
This company was a loss. No surprises here I& #39;m sure.
That happens. In most VC funds it& #39;s 60-80%.
I pride ourselves on having it be less than 5%.
But sometimes, losses have to be cut.
That happens. In most VC funds it& #39;s 60-80%.
I pride ourselves on having it be less than 5%.
But sometimes, losses have to be cut.
Going forward I like my founders:
- bottom line obsessed
- cost centric
- uncaring about personal press
- and ya know.. into numbers as opposed to visionshttps://abs.twimg.com/emoji/v2/... draggable="false" alt="đ¶" title="Mundloses Gesicht" aria-label="Emoji: Mundloses Gesicht">
What red flags have you found in investing in deals, founders? Or even investors - we& #39;re certainly a ridiculous lot.
- bottom line obsessed
- cost centric
- uncaring about personal press
- and ya know.. into numbers as opposed to visions
What red flags have you found in investing in deals, founders? Or even investors - we& #39;re certainly a ridiculous lot.
What do you want to know about investing in founders and startups?
After investing in 80+ companies I& #39;ve seen a thing or 12.https://abs.twimg.com/emoji/v2/... draggable="false" alt="đ€Ł" title="Lachend auf dem Boden rollen" aria-label="Emoji: Lachend auf dem Boden rollen">
After investing in 80+ companies I& #39;ve seen a thing or 12.
