Month: August 2020

246. Agglomerators vs. Specialists, the Rise of the Solo-Capitalist, and the Importance of Founder-Investor Fit (Nikhil Basu Trivedi)



Nikhil Basu Trivedi of joins Nick to discuss Agglomerators vs. Specialists, the Rise of the Solo-Capitalist, and the Importance of Founder-Investor Fit+. In this episode, we cover:

  • Why did you decide to leave Shasta?
  • What's the plan moving forward?
  • The Rise of Solo Capitalists
    • You wrote a great piece on the rise of this behavior, ‘The Rise of the Solo Capitalists’. What do you think has caused the rise in single GP funds?
    • What are the main benefits to both investor and entrepreneur with this model?
    • What are the limitations and/or downsides of this model?
    • You wrote that an LP said that this model ‘may be the biggest threat traditional venture capital firms have seen in a long time’. Why?
  • Founder-Investor Fit
    • What do you think are the most important things for founders to consider when choosing an investor?
    • There are many firms that don't care about the "fit" per se... they just want to get money into the best deals.  And it can be tough for a founder to turn down the best offer or the biggest name investor.  Do you think that lack of fit can lead to the demise of the company?
    • Do you think that founder-investor relationships/dynamics will change significantly over the next decade?  Why or why not?
  • Agglomerators vs. Specialists
    • Can you break down the types of focus amongst VCs? Agglomerators vs. Specialists?
    • What do you think has caused the rise of the agglomerators?
    • From a returns (TVPI) standpoint, do you think one model is (Read more...)

246. Agglomerators vs. Specialists, the Rise of the Solo-Capitalist, and the Importance of Founder-Investor Fit (Nikhil Basu Trivedi)



Nikhil Basu Trivedi of joins Nick to discuss Agglomerators vs. Specialists, the Rise of the Solo-Capitalist, and the Importance of Founder-Investor Fit+. In this episode, we cover:

  • Why did you decide to leave Shasta?
  • What's the plan moving forward?
  • The Rise of Solo Capitalists
    • You wrote a great piece on the rise of this behavior, ‘The Rise of the Solo Capitalists’. What do you think has caused the rise in single GP funds?
    • What are the main benefits to both investor and entrepreneur with this model?
    • What are the limitations and/or downsides of this model?
    • You wrote that an LP said that this model ‘may be the biggest threat traditional venture capital firms have seen in a long time’. Why?
  • Founder-Investor Fit
    • What do you think are the most important things for founders to consider when choosing an investor?
    • There are many firms that don't care about the "fit" per se... they just want to get money into the best deals.  And it can be tough for a founder to turn down the best offer or the biggest name investor.  Do you think that lack of fit can lead to the demise of the company?
    • Do you think that founder-investor relationships/dynamics will change significantly over the next decade?  Why or why not?
  • Agglomerators vs. Specialists
    • Can you break down the types of focus amongst VCs? Agglomerators vs. Specialists?
    • What do you think has caused the rise of the agglomerators?
    • From a returns (TVPI) standpoint, do you think one model is (Read more...)

It Depends: Why the right fundraising strategy for your startup is never a straight answer.



1.jpg

Talk to ten founders and ten different VCs and you’ll get roughly about 600 different suggestions as to how you should go about your fundraising strategy. I don’t know what the formula is here, but the numbers and the resulting amount of confusion gets big very very quickly.

Why does it seem like there’s an exception to every rule? You’re told that you can’t raise until you have a product, yet pre-product companies get funded all the time. You’re told that you need more revenue, but someone who has half the revenue that you do got funded last week. What gives?

The problem is that your pitch is a combination of a bunch of individual components, each of whom an investor is going to have particular reactions to and sometimes a great reaction to one is enough to push you over the top—or sink your pitch.

For example, I’m more than happy to fund something that is pre-product except if you’re in a notoriously difficult to sell into industry, like small businesses, government, or education. In those industries, there are lots of seemingly great products that die because the team lacks the expertise to break into the market.

Even a particular attribute like revenue has several factors to it, like growth, concentration and whether or not that revenue is a subscription for SaaS, one time purchases, or consulting. A million-dollar run rate achieved in four months will garner very different reactions in the market than one reached after four years. (Read more...)

It Depends: Why the right fundraising strategy for your startup is never a straight answer.



1.jpg

Talk to ten founders and ten different VCs and you’ll get roughly about 600 different suggestions as to how you should go about your fundraising strategy. I don’t know what the formula is here, but the numbers and the resulting amount of confusion gets big very very quickly.

Why does it seem like there’s an exception to every rule? You’re told that you can’t raise until you have a product, yet pre-product companies get funded all the time. You’re told that you need more revenue, but someone who has half the revenue that you do got funded last week. What gives?

The problem is that your pitch is a combination of a bunch of individual components, each of whom an investor is going to have particular reactions to and sometimes a great reaction to one is enough to push you over the top—or sink your pitch.

For example, I’m more than happy to fund something that is pre-product except if you’re in a notoriously difficult to sell into industry, like small businesses, government, or education. In those industries, there are lots of seemingly great products that die because the team lacks the expertise to break into the market.

Even a particular attribute like revenue has several factors to it, like growth, concentration and whether or not that revenue is a subscription for SaaS, one time purchases, or consulting. A million-dollar run rate achieved in four months will garner very different reactions in the market than one reached after four years. (Read more...)

Investor Stories 155: Why I Passed (Klaff, Steffens, Polovets, Deeter)



On this special segment of The Full Ratchet, the following Investors are featured:

  • Oren Klaff
  • Tamara Steffens
  • Leo Polovets
  • Byron Deeter

Each investor highlights a situation where they decided not to invest, why they passed, and how it played out.

Investor Stories 155: Why I Passed (Klaff, Steffens, Polovets, Deeter)



On this special segment of The Full Ratchet, the following Investors are featured:

  • Oren Klaff
  • Tamara Steffens
  • Leo Polovets
  • Byron Deeter

Each investor highlights a situation where they decided not to invest, why they passed, and how it played out.

Reid Hoffman | Building Ecosystems of Adaptability


This post is by Greylock Partners from Greymatter


This episode of Greymatter features Reid Hoffman in conversation with Peter High, president of business and IT strategy firm Metis Strategy. In the context of the current pandemic and economic crisis, Reid and Peter discuss strategies and insights for entrepreneurs on building, developing and strengthening their ecosystem (while offering the same level of support and insight back); the importance of co-design in go-to-market strategy; how blitzscaling applies to large companies; and how the pandemic has caused previous market failures to move to market readiness. The conversation took place in front of a live virtual audience during the Metis Strategy Digital Symposium.

Reid Hoffman | Building Ecosystems of Adaptability


This post is by Greylock Partners from Greymatter


This episode of Greymatter features Reid Hoffman in conversation with Peter High, president of business and IT strategy firm Metis Strategy. In the context of the current pandemic and economic crisis, Reid and Peter discuss strategies and insights for entrepreneurs on building, developing and strengthening their ecosystem (while offering the same level of support and insight back); the importance of co-design in go-to-market strategy; how blitzscaling applies to large companies; and how the pandemic has caused previous market failures to move to market readiness. The conversation took place in front of a live virtual audience during the Metis Strategy Digital Symposium.

Coda | Powering the Maker Generation


This post is by Greylock Partners from Greymatter


Productivity software startup Coda was founded to empower anyone to make a document as powerful as an app, no engineering required. Now that many businesses have no choice but to be distributed, Coda has seen accelerating adoption as a central collaboration hub within companies. Coda CEO and co-founder Shishir Mehrotra discusses with Greylock general partner Sarah Guo why he believes “the world runs on docs, not apps,” why the core metaphors for productivity systems are stagnant, solving the “tragedy of the commons in enterprise software,” the most commonly pressed three buttons in SaaS, why you want structured participation in your board meetings, lessons learned from the in-office (and not) cultures of Microsoft and Google, and his predictions for the future of productivity. This episode is part of the #WorkFromAnywhere series hosted by Sarah and fellow Greylock partner David Thacker.