1/ Are we finally seeing the disaggregation of venture capital ?
2/ This was part of @naval 's original vision when starting @AngelList - the separation of capital / board / specialist advice / network intros
3/ @HarryStebbings is in trenches in SV with @twentyminutevc fund - seeing more rounds with 10x $200K checks from rolling funds and superangels
4/ @shl and others leading the charge with rolling funds and no board seats
5/ Do entrepreneurs really care about boards anymore? Do they need them? If they do, are strong indies repping all shareholders the better choice?
6/ Devils's advocate - boards are where many decisions get made. A good board forces good debate. And there are conflicts to manage. But can we achieve the same outcomes differently?
7/ I shine on strategy and product. @HarryStebbings is unbeatable on network. Perhaps there is a different way. Access us when you need to, don't when you don't.
8/ The question I ponder heading into 2021. Now back to braising my octopus. / eot.

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More from @fdestin

16 Dec 20
1/ Beware the tail wagging the dog.

Numbers you committed to your board are not your strategy.

Numbers you think next round investors want to see are not your strategy.
2/ You produce objectives because it's good to have measurable targets, usually ambitious ones. You know it's really hard to forecast so early ... but suddenly your fairly random attempt at predicting the future because the yardstick against which you are measured.
3/ Once these numbers are communicated to the board and across the company, these become the goal everyone is working towards. This many paying customers, suppliers on the platform, whatever the KPI may be.

Your wise investors tell you "disciplined companies hit their numbers"!
Read 9 tweets
18 Oct 20
1/ Let me distill the Stride investment strategy in fifteen tweets. Yes, fifteen 😘.
2/ To be able to make money, you need some form of edge. The edge does not need to be complex of over-intellectualised, but it needs to be real and drive returns.
3/ Some funds are vertical specialists (say @anthemis ), some leverage network assets (say @ycombinator ) or build large portfolios (say @seedcamp), some funds leverage dominant execution capability (say @sequoia or @IndexVentures ) etc.
Read 15 tweets
24 Sep 20
1/ A CEO’s number one job is to define the mission, communicate that mission relentlessly, and keep everyone focused on the mission.

That’s how you move the ball down the field everyday.
2/ That communication is to team members, clients, partners, investors, the market at large.

It’s got to be simple, consistent, and consistently repeatable by others. Your second layer SDR needs to be able to deliver almost as well as you do.
3/ this is why founder / CEOs can’t spend their entire time doing.

Systems, processes, culture and people must align to collectively help define the right mission, amplify it and execute it.
Read 6 tweets
2 Sep 20
How to get your hands on pre-seed funding 👇
1/ First principle - THE PICK.

Make sure you’ve picked your idea well!

A problem you feel is really worth solving, or an opportunity you’re willing to commit a good chunk of your life to. Validate hard before you commit.

Fact: Too many founders rush into average ideas.
2/ Find a co-founder

It’s harder to get funded solo. It's also lonely.

Whether you can attract one more person is a first, important point of validation. Trustmark #1.
Read 14 tweets
26 Aug 20
1/ Your startup valuation, explained simply 👇
2/ Angels and Investors will buy newly issued shares (US: stock) in your company.

They will invest a dollar amount (say $1M) and buy shares at a certain Price Per Share (PPS) which is the value of one unit of equity (a share).

So far so trivial :-)
3/ Investors look at your existing business, assign a value to it. This the Pre-Money Valuation.

Post Money = Pre-Money + New Cash coming in
= the agreed value of your company + the cash that sits in your bank account immediately after the round.
Read 24 tweets
25 Aug 20
1/ How VC economics work explained very simply 👇
2/ Management company is the key entity. It is owned by the General Partners.

Revenues are fees paid on funds (usually 2%, may go down after investment period).

Expenses are team comp, office, all ops, compliance and placement agent fees if those are used.
3/ Each fund is a separate Limited Partnership. Investors are hence Limited Partners.

Each fund pay fees and carry ... as well as some expenses (legal feels, deal expenses, fund admin, audit fees)
Read 7 tweets

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