preemptive rounds

“And so I think the downside of preemptive rounds and extra capital is it also locks in the entrepreneur to a longer story, and it removes the option value of actually exiting at a valuation where lots of people would have bought them.”

“Preemptive rounds are best suited for venture capitalists who have large funds, because I think it's much harder as an individual to manage capital relative to guessing whether something will work or not.”

“The conversation usually with them is a, what I would call like a private one-on-one of, take your sales hat off, For a second, take your hype person hat off. Cause as a founder, you know, you're selling every single day, whether it's to recruits or customers …”

“On the flip side, I think it's very dangerous, and I think there's going to be people that get extremely burned when the music stops, and the music will stop.”

“When you think about these like preemptive rounds where it's like, oh, some company raises at five hundred million in January, and then in March, they raise at a billion. It's like, it's unlikely in most of those cases that you actually engage in any commercia…”