1/ Tough look to send this tweet, especially given your background @Ksydaniel
I could understand if it was one of the 600 founders/CEOs that Draper Associates has backed. I don’t get it from VC Associate. Let me try to clarify some things.
I could understand if it was one of the 600 founders/CEOs that Draper Associates has backed. I don’t get it from VC Associate. Let me try to clarify some things.
2/ First- my ask is for empathy. Tim is in a great seat. Sure companies are struggling but most of his $$ is fine. You’re also privileged in a way that you not recognize given your career tenure (3 yrs full time) and focus (finance - no operating).
linkedin.com/in/dksangyoon/
linkedin.com/in/dksangyoon/
3/ Let me make sure you understand. VC is typically a 60-70% contribution margin and *most* of your revenue is locked in for a decade. Compare that to the seat your CEOs are in- many of whom were bleeding money before this and will some/much of their revenue disappear overnight
4/ Daniel I’ve made a whole ton of mistakes in my life and my career, including not always demonstrating empathy for others. I’m reminded of so many times as a board member that I failed in this regard- happy to share them publicly if helpful. Almost always no one pointed it out
5/ I was a worse investor because I didn’t recognize it in the moment- only with a lot of hindsight.
But this isn’t about whether Tim is a good investor- frankly I don’t care.
But this isn’t about whether Tim is a good investor- frankly I don’t care.
6/ This is about the culture that I see persist from many VCs that contains little or no empathy for the founders they back. Ironically or not it reminds me of the hedge fund world you came from.
7/ Today is def a time where VCs should see opportunity. Great co's have been born in previous recessions. Co's that wouldn’t have taken your money 2 months ago may be open now. Valuations may come down. I’m glad Tim sees opportunity. SV is better b/c VCs see opportunity.
8/ I just wish his framing was dramatically different. I found his tone completely devoid of empathy. I’m an investor in several other funds that have sent out letters to LPs over the past 2 weeks. None had tone like his.
9/ I experienced his letter as arrogant – which is fine, just a bad look- but more importantly didn’t contain consideration for the hell his CEOs are going through right now.
10/ That’s what I’m asking for. Acknowledgement that he understands the emotional nosedive his founders are navigating right now. Talk about how difficult the situation is for them, their employees and candidly everyone that doesnt have 10 yr locked in revenue.
Be a leader.
Be a leader.
11/ Some responses to my tweet called my request trite. That’s fine. I think language creates reality. I think acknowledging to his LPs that he understands the difficult situation the founders are in is important. Maybe I'm crazy Daniel- but I like this side of crazy.
12/ I think you learning how to invest from letters like this may lead you to also have less empathy for founders- which makes the lives of founders worse. Maybe that's why you sent the snarky tweet. Maybe it's a cultural thing at Draper.
13/ Regardless I hope you consider the tone in your communication to entrepreneurs or LPs. Lots of people they touch are struggling. Lots of people in your life are struggling too. Empathy isn’t trite, it’s human. 
