Read on Twitter
1/13: At Formation, we stand by our community. We don’t choose whales over individuals. We don’t chase big cheques over DAO social impact. We say no. We refund. And you should too. Here is why. 
https://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">https://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">
2/13: This is controversial, but should happen more. Many VCs are just freeloading, with no love for projects they fund. Isn’t one of crypto’s core values eliminating non value-add middlemen? https://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">
3/13: Of course, in the end everyone is here to make money. Some even monkey money. VCs take a big risk and deserve a large reward. https://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">
4/13: With limited VC slots, it makes sense to drop deadweight in favor of added value. https://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">
5/13: We only wanted VCs who’d add real value to the project. So how did we assess this? Here’s the metrics we used, along with their importance and how easy they are to test in advance. https://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">
6/13: Brand reputation: A well-known VC marks trust in a product. People follow. Market follows. Speculation follows.
Testability: EASY
Importance: HIGHhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">
Testability: EASY
Importance: HIGH
7/13: Expertise: Good VCs with skin in the game will transfer knowledge, provide support and advice, and even help with tasks.
Testability: EASY
Importance: MEDIUMhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">
Testability: EASY
Importance: MEDIUM
8/13: Social impact: Some VCs help you reach a wide audience, through connections they have. Cheaper and more authentic than influencers.
Testability: MEDIUM
Importance: MEDIUMhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">
Testability: MEDIUM
Importance: MEDIUM
9/13: Network access: Many VCs have incredible networks, but aren’t always willing to share. Providing solid intros will save you time. Big time.
Testability: HARD
Importance: HIGHhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">
Testability: HARD
Importance: HIGH
10/13: Flippers / dumpers: Is the VC going to flip their tokens as soon as they can? Lock-ups help, but these guys often bring like-minded flippers. And a whole community of flippers is bad news.
Testability: LOW
Importance: HIGHhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">
Testability: LOW
Importance: HIGH
11/13: Most of these can only be tested “in prod”, once a VC has committed. So once you find a bad apple, isn’t it too late? Not at all. Refund the money - fair and square. https://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">
12/13: Dropped VCs will get angry. They’ll apply pressure and threats (collateral damage, reputation, FUD, bad karma). Stick to your guns. Do what’s right for your community and product. https://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">
13/13: Did this piss people off? Sure. Was it painful to demand accountability? Absolutely. Would we do it again? In a heartbeat. Like a good medicine, it can taste bitter but it’s good for your health.
