Thread by @someshdash

I spoke to a class of @KauffmanFellows #VCs on managing through a crisis, and here are some takeaways from our thoughtful discussion. (thread) 1/

First, don’t believe the doomsayers. Recall that after Black Monday (Oct 1987), pundits were eulogizing @Microsoft & @Apple. But there is an art & craft – for VCs and their companies – to managing a downturn. /2

Lessons from past crises:
1) Now is the time to extend venture debt lines; if markets continue tanking terms will degrade sooner than you expect.

2) Disregard doomsday hottakes. This is not a permanent shift to bad times. (Remember the predictions after ‘02 that the Internet was dead or after ‘08 that fintech was dead?) /3

Founder management:
Investors, never underestimate how much founders care. Startups & founders are deeply intertwined at an emotional level. This is usually their life savings/friends/family capital/reputation, etc. They always care more than you do. /4

Instead of trading in general market insights, give founders what they really need: specific tactical insights, eg, how to reprice new equity grants after an overpriced last round, or how to pull in cash from Enterprise customers without deeply discounting list prices /5

Don’t pretend to have all the answers, and admit when you don't. Good investors are sounding boards, not magic 8 balls. Founders recognize & appreciate honesty and humility. /6

Finally, you're in this for the duration. Be mindful, energetic and empathic. Robert Frost's words, from 99 yrs ago, are inspiring:

The woods are lovely, dark and deep,
But I have promises to keep,
And miles to go before I sleep,
And miles to go before I sleep. /END