Apr 26, 2019 · 30m · 20vc

20VC: Why Startup Founders Have One Core Job, How To Reduce Risk & Increase Probability In Your Startup & Why You Should Not Send A Pitch Deck Pre-Investor Meeting with David Rogier, Founder & CEO @ Masterclass

David Rogier · 18m spoken Harry Stebbings · 10m spoken
0:00 / 0:00

gold bands on the timeline = statements, start to end. Hover to read, click to jump. CC turns on captions

In this episode of The 20 Minute VC, MasterClass Founder and CEO David Rogier joins Harry Stebbings to share the inspiration behind his company, strategies for raising venture capital, and key frameworks for startup risk management and founder resilience.

How this conversation actually went

Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Harry holds 35.8% of the talking time here. How this is scored →

Harry as informed peer 2.7 Guest teaching 4.8 Guest disagreement 1.5 Harry pushing back 0.8
05100:0010:0020:0030:003:29–7:36 · Harry as informed peer 1/10 The Founding Inspiration and Origin Story of Masterclass Harry introduces the episode warmly and asks for David's origin story. David shares a long personal story about receiving early backing from Michael Deering and being inspired by his grandmother's resilience as a Holocaust survivor.7:36–9:46 · Harry as informed peer 3/10 The Single Core Job of a Startup Founder David asserts that a founder's sole job is not running out of money. When Harry asks whether runway should be planned around 18, 24, or 36 months, David reframes the question, explaining that runway should be determined by milestone execution rather than arbitrary calendar time.9:46–14:06 · Harry as informed peer 3/10 Navigating Venture Capital and Vetting Investors David details how raising venture capital changes founder incentives and board dynamics. He educates Harry on vetting potential investors by backchanneling failed portfolio companies and testing investors with hypothetical worst-case scenarios.14:06–19:13 · Harry as informed peer 3/10 Managing Founder Pressure and Streamlining Advice David advises founders to rely on a single key advisor rather than multiple to maintain execution speed. He describes smoke-testing demand for Masterclass with a dummy website and Google ads before spending significant capital.19:13–22:27 · Harry as informed peer 4/10 Pitch Deck Tactics and Relationship-Building with VCs David explains why founders should withhold pitch decks prior to investor meetings. Harry connects this to VC hard-to-get tactics, and David explicitly rejects the popular advice that founders should always be fundraising.22:27–28:14 · Harry as informed peer 2/10 Prioritizing Board Quality Over Valuation David advocates choosing board members over valuation price tags. During the quick-fire round, he shares an Aaron Sorkin quote on separating hard facts from noise and discusses his surprise at the insecurities of top celebrity instructors.3:29–7:36 · Guest teaching 3/10 The Founding Inspiration and Origin Story of Masterclass Harry introduces the episode warmly and asks for David's origin story. David shares a long personal story about receiving early backing from Michael Deering and being inspired by his grandmother's resilience as a Holocaust survivor.7:36–9:46 · Guest teaching 6/10 The Single Core Job of a Startup Founder David asserts that a founder's sole job is not running out of money. When Harry asks whether runway should be planned around 18, 24, or 36 months, David reframes the question, explaining that runway should be determined by milestone execution rather than arbitrary calendar time.9:46–14:06 · Guest teaching 5/10 Navigating Venture Capital and Vetting Investors David details how raising venture capital changes founder incentives and board dynamics. He educates Harry on vetting potential investors by backchanneling failed portfolio companies and testing investors with hypothetical worst-case scenarios.14:06–19:13 · Guest teaching 6/10 Managing Founder Pressure and Streamlining Advice David advises founders to rely on a single key advisor rather than multiple to maintain execution speed. He describes smoke-testing demand for Masterclass with a dummy website and Google ads before spending significant capital.19:13–22:27 · Guest teaching 5/10 Pitch Deck Tactics and Relationship-Building with VCs David explains why founders should withhold pitch decks prior to investor meetings. Harry connects this to VC hard-to-get tactics, and David explicitly rejects the popular advice that founders should always be fundraising.22:27–28:14 · Guest teaching 4/10 Prioritizing Board Quality Over Valuation David advocates choosing board members over valuation price tags. During the quick-fire round, he shares an Aaron Sorkin quote on separating hard facts from noise and discusses his surprise at the insecurities of top celebrity instructors.3:29–7:36 · Guest disagreement 0/10 The Founding Inspiration and Origin Story of Masterclass Harry introduces the episode warmly and asks for David's origin story. David shares a long personal story about receiving early backing from Michael Deering and being inspired by his grandmother's resilience as a Holocaust survivor.7:36–9:46 · Guest disagreement 2/10 The Single Core Job of a Startup Founder David asserts that a founder's sole job is not running out of money. When Harry asks whether runway should be planned around 18, 24, or 36 months, David reframes the question, explaining that runway should be determined by milestone execution rather than arbitrary calendar time.9:46–14:06 · Guest disagreement 1/10 Navigating Venture Capital and Vetting Investors David details how raising venture capital changes founder incentives and board dynamics. He educates Harry on vetting potential investors by backchanneling failed portfolio companies and testing investors with hypothetical worst-case scenarios.14:06–19:13 · Guest disagreement 2/10 Managing Founder Pressure and Streamlining Advice David advises founders to rely on a single key advisor rather than multiple to maintain execution speed. He describes smoke-testing demand for Masterclass with a dummy website and Google ads before spending significant capital.19:13–22:27 · Guest disagreement 3/10 Pitch Deck Tactics and Relationship-Building with VCs David explains why founders should withhold pitch decks prior to investor meetings. Harry connects this to VC hard-to-get tactics, and David explicitly rejects the popular advice that founders should always be fundraising.22:27–28:14 · Guest disagreement 1/10 Prioritizing Board Quality Over Valuation David advocates choosing board members over valuation price tags. During the quick-fire round, he shares an Aaron Sorkin quote on separating hard facts from noise and discusses his surprise at the insecurities of top celebrity instructors.3:29–7:36 · Harry pushing back 0/10 The Founding Inspiration and Origin Story of Masterclass Harry introduces the episode warmly and asks for David's origin story. David shares a long personal story about receiving early backing from Michael Deering and being inspired by his grandmother's resilience as a Holocaust survivor.7:36–9:46 · Harry pushing back 1/10 The Single Core Job of a Startup Founder David asserts that a founder's sole job is not running out of money. When Harry asks whether runway should be planned around 18, 24, or 36 months, David reframes the question, explaining that runway should be determined by milestone execution rather than arbitrary calendar time.9:46–14:06 · Harry pushing back 1/10 Navigating Venture Capital and Vetting Investors David details how raising venture capital changes founder incentives and board dynamics. He educates Harry on vetting potential investors by backchanneling failed portfolio companies and testing investors with hypothetical worst-case scenarios.14:06–19:13 · Harry pushing back 1/10 Managing Founder Pressure and Streamlining Advice David advises founders to rely on a single key advisor rather than multiple to maintain execution speed. He describes smoke-testing demand for Masterclass with a dummy website and Google ads before spending significant capital.19:13–22:27 · Harry pushing back 2/10 Pitch Deck Tactics and Relationship-Building with VCs David explains why founders should withhold pitch decks prior to investor meetings. Harry connects this to VC hard-to-get tactics, and David explicitly rejects the popular advice that founders should always be fundraising.22:27–28:14 · Harry pushing back 0/10 Prioritizing Board Quality Over Valuation David advocates choosing board members over valuation price tags. During the quick-fire round, he shares an Aaron Sorkin quote on separating hard facts from noise and discusses his surprise at the insecurities of top celebrity instructors.

speaking balance: gold is Harry, purple is the guest (3 minute bins)

0:00 · Harry 100% · guest 0%0:00 · Harry 100% · guest 0%3:00 · Harry 24.9% · guest 75.1%3:00 · Harry 24.9% · guest 75.1%6:00 · Harry 25.2% · guest 74.8%6:00 · Harry 25.2% · guest 74.8%9:00 · Harry 19.7% · guest 80.3%9:00 · Harry 19.7% · guest 80.3%12:00 · Harry 11.6% · guest 88.4%12:00 · Harry 11.6% · guest 88.4%15:00 · Harry 20.4% · guest 79.6%15:00 · Harry 20.4% · guest 79.6%18:00 · Harry 34.9% · guest 65.1%18:00 · Harry 34.9% · guest 65.1%21:00 · Harry 16.4% · guest 83.6%21:00 · Harry 16.4% · guest 83.6%24:00 · Harry 18.8% · guest 81.2%24:00 · Harry 18.8% · guest 81.2%27:00 · Harry 68.6% · guest 31.4%27:00 · Harry 68.6% · guest 31.4%30:00 · Harry 100% · guest 0%30:00 · Harry 100% · guest 0%
Sharpest disagreement ▶ 20:42 Rejecting continuous fundraising advice

David explicitly pushes back on common Silicon Valley wisdom that founders should always be fundraising, arguing it distracts from running the core business.

Hardest push from Harry ▶ 8:12 Pressing on specific runway timelines

Harry pushes David to go beyond generalities about cash conservation by asking directly if founders should target 18, 24, or 36 months of runway.

Biggest teaching moment ▶ 8:27 Milestone-based runway vs time-based runway

David corrects Harry's time-centric framing of runway by educating him on calculating capital needs based on proving key hypotheses multiplied by two.

Harry holds his own ▶ 20:01 Explaining the VC hard-to-get psychology

Harry demonstrates his domain expertise as an investor by expanding on David's deck tactic, pointing out how withholding decks triggers VC fear-of-missing-out.

the scores for every segment, with the reasoning behind each
ChapterTopicHarry as informed peerGuest teachingGuest disagreementHarry pushing backWhy
The Founding Inspiration and Origin Story of Masterclass 1300 Harry introduces the episode warmly and asks for David's origin story. David shares a long personal story about receiving early backing from Michael Deering and being inspired by his grandmother's resilience as a Holocaust survivor.
The Single Core Job of a Startup Founder 3621 David asserts that a founder's sole job is not running out of money. When Harry asks whether runway should be planned around 18, 24, or 36 months, David reframes the question, explaining that runway should be determined by milestone execution rather than arbitrary calendar time.
Navigating Venture Capital and Vetting Investors 3511 David details how raising venture capital changes founder incentives and board dynamics. He educates Harry on vetting potential investors by backchanneling failed portfolio companies and testing investors with hypothetical worst-case scenarios.
Managing Founder Pressure and Streamlining Advice 3621 David advises founders to rely on a single key advisor rather than multiple to maintain execution speed. He describes smoke-testing demand for Masterclass with a dummy website and Google ads before spending significant capital.
Pitch Deck Tactics and Relationship-Building with VCs 4532 David explains why founders should withhold pitch decks prior to investor meetings. Harry connects this to VC hard-to-get tactics, and David explicitly rejects the popular advice that founders should always be fundraising.
Prioritizing Board Quality Over Valuation 2410 David advocates choosing board members over valuation price tags. During the quick-fire round, he shares an Aaron Sorkin quote on separating hard facts from noise and discusses his surprise at the insecurities of top celebrity instructors.

Statements from this episode (12)

Disclosure
Michael Deering invested $500K in David Rogier before he had an idea
“And he basically invested half a million and told me to go think of an idea.”
David Rogier Apr 26, 2019 ▶ 4:23
Insight
A founder's single job is preventing cash exhaustion
“I have one job, and that job is to make sure that we never run out of money. The only thing that can kill a startup is running out of cash.”
David Rogier Apr 26, 2019 ▶ 7:46
Insight
Founders should double milestone cost and time estimates in startup planning
“And then I always times it by two, because however fast and efficient you think you're going to be, everything, when you actually work on it, just takes more time and just costs more.”
David Rogier Apr 26, 2019 ▶ 9:07
Disclosure
MasterClass raised $5 million prior to its public launch
“We had raised approximately five million before launch.”
David Rogier Apr 26, 2019 ▶ 10:02
Insight
Early-stage startups should rely on a single advisor to preserve speed
“One of the most important things at early stage is speed, and by asking five people for their thoughts and advice, they aren't going to give the same advice, so then you're going to spend a whole bunch of time, and you're going to have to debate it and think a…”
David Rogier Apr 26, 2019 ▶ 14:47
Assertion Supported
Rogier validated MasterClass demand using a fake website with 100 courses
“So what I decided to do was I created a fake website that had a hundred different online classes that I did not have. I paid a firm in Argentina, I think like I actually helped build the site. I hired some people on TaskRabbit to help write the class text inst…”
David Rogier Apr 26, 2019 ▶ 16:18
Assertion Supported
Signing early MasterClass instructors took up to 12 months
“That was hard. That probably took like eight to 12 months, and it was only possible because of that first half million.”
David Rogier Apr 26, 2019 ▶ 18:05
Assertion Supported
Dustin Hoffman was MasterClass's first signed instructor
“And then I remember the first time that we got our first yes was from Dustin Hoffman.”
David Rogier Apr 26, 2019 ▶ 18:38
Disclosure
Pre-sending pitch decks has never yielded an investment for MasterClass
“I can't think of one case where I sent out a pitch deck before the pitch, and the person then wanted to actually invest.”
David Rogier Apr 26, 2019 ▶ 19:29
Insight
Founders should spend 5% of their time building VC relationships
“I think it is always smart to be spending five percent of your time on the relationship side.”
David Rogier Apr 26, 2019 ▶ 21:02
Disclosure
Rick Yang rejected MasterClass's Series A before leading Series B
“Rick Yang, who led our B round and is in a fantastic board member I actually pitched him for the A, and Rick passed.”
David Rogier Apr 26, 2019 ▶ 21:31
Prediction Didn’t hold up
MasterClass will be in every American home within five years
“It will be in every home in America. And then after that, we will go more internationally and broad.”
David Rogier Apr 26, 2019 ▶ 27:29
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