The Exchanges

Q Well, that is very kind, and more to start to any episode, but I want to start today with a little about you. So tell me, how did you make your way into the world of startups, and did you always dream of reinventing the software platform Form some preschools with Bright Wheel, and what was that aha moment for you?

A Yeah. So I, I'll go way back and just say I'm a, I'm a first generation American. My parents came to the U S with very little. And so education, you know, was their bedrock and thereby was my bedrock and in many ways has been a focus of my career. So I started my career doing online learning with Cisco I,. I did strategy work with Teach for America. I built the K-II education team for Kindle within Amazon. And for me, it's always been about where technology can transform the daily experience for teachers, for parents, and ultimately for students. And so, most of that time in my career was spent in K-II, the kindergarten through high school, as we call it in the U.S. You fast forward a little bit, and just about five years ago now, my first child, our daughter Serena, was born, and I have all of a sudden this little human being in my hand, and it's funny as it sounds in hindsight, like, I didn't fully appreciate that when a kid shows up for kindergarten at age six, that they've had five years of development before that, and, you know, preschool, it's daycare, it's after school programs, it's all these really, really influential years of early education that Now, most studies say, like, those five years of life are perhaps the most impactful of any five-year span after that when it comes to growth and development. And so, you know, it is a must, certainly, for, for young kids and…

AI assessment note: “my first child, our daughter Serena, was born, and I have all of a sudden”

Q mean, in terms of kind of funding being the guide, there's often quite a few quotes or mottos related to fundraising and funding success We touched on your race slightly there. I'd love to discuss two very common statements that I've heard many, many times on the show. One of them is that founders should always be raising. So Dave, tell me, what are your thoughts on this perceived wisdom?

A I'll be very honest. I really dislike that. I think fundraising is a tactical component of building a company. It's one part of the founder's job. It's important. It's absolutely important. And it's been a big part of my job, but it also takes us away from the product and from the business for frankly extended amounts of time. And so while my approach may be different, From others. And some may disagree. What I try to do is condense it as much as possible. So this requires planning ahead, knowing what future fundraising is going to be in terms of our plan, ensuring that we know the milestones we have to hit to get to that funding, but focus on hitting those at that time. And then when it comes to the actual time to fundraise, I actually just time boxes as much as possible. I try to get it done, get it wired, and then go back to building the business. And I think to me, that phrase of always be raising just suggests that That fundraising actually is the number one thing that a CEO needs to do, and where a CEO adds value, and I just disagree. I think I would imagine that VCs coined that phrase, and that makes sense. I think their job is to always be funding, to always be getting funded, and where financing there is a core part of the job all the time. I just don't think that's the case for the CEO, and so, you know, for a CEO, I would probably change it to something like always b…

AI assessment note: “I'll be very honest. I really dislike that. I think fundraising is a tactical component”

Q mean, in terms of kind of funding being the guide, there's often quite a few quotes or mottos related to fundraising and funding success We touched on your race slightly there. I'd love to discuss two very common statements that I've heard many, many times on the show. One of them is that founders should always be raising. So Dave, tell me, what are your thoughts on this perceived wisdom?

A I'll be very honest. I really dislike that. I think fundraising is a tactical component of building a company. It's one part of the founder's job. It's important. It's absolutely important. And it's been a big part of my job, but it also takes us away from the product and from the business for frankly extended amounts of time. And so while my approach may be different, From others. And some may disagree. What I try to do is condense it as much as possible. So this requires planning ahead, knowing what future fundraising is going to be in terms of our plan, ensuring that we know the milestones we have to hit to get to that funding, but focus on hitting those at that time. And then when it comes to the actual time to fundraise, I actually just time boxes as much as possible. I try to get it done, get it wired, and then go back to building the business. And I think to me, that phrase of always be raising just suggests that That fundraising actually is the number one thing that a CEO needs to do, and where a CEO adds value, and I just disagree. I think I would imagine that VCs coined that phrase, and that makes sense. I think their job is to always be funding, to always be getting funded, and where financing there is a core part of the job all the time. I just don't think that's the case for the CEO, and so, you know, for a CEO, I would probably change it to something like always b…

AI assessment note: “I'll be very honest. I really dislike that. I think fundraising is a tactical component”

Q Can I ask, with that in mind, VCs are a proactive and hungry bunch. What would you say then, advice-wise, to a founder who says, you know, I get inbound from VCs, what should I respond to them when I'm not raising? Should they do the coffee? How would you respond in terms of your advice to this kind of proactive approach from the VC?

A I think it's hard, because you want to build relationships, you want to be respectful, And I do admire a lot of folks out there and would love to spend the time. I just don't have it. And I think if I, if I have an extra half hour, an hour, I'm going to put that into the business. I'm going to put that into hiring. I'm going to put that into the thing that I should have been doing yesterday. And so what, you know, what I try to convey is, and what I advise is just the, the limitations on time and what that means and be able to give a future window potentially when that may change and the time to check back in again and just be polite, certainly about it. I'll be clear about it. But it is challenging, because I think it is the time and incentive structures are just a little bit different on each side.

AI assessment note: “what I advise is just the, the limitations on time and what that means”

Q Tell me, what moment in your life has served maybe as an inflection point and changed the way you think?

A Yeah, maybe I'll split it into kind of two different phases. Early on in life, I did a bunch of backpacking on my own internationally, even climbed a few mountains, and I think pushing yourself outside your comfort zone, and then even, frankly, your physical limits, for me, was really, really important to get to that point and know that you can then dig in and keep going. But I often look back on that experience. Now, again, more recently, later in life, I would have to say, you know, marrying my wife, certainly. You know, not the meeting, but the actual committing. You know, she's been my rock in many ways through this experience. And then we talked a little about my two girls, just how grounding they are, how simple joy can be with them, and how they have, you know, changed things in many ways.

AI assessment note: “marrying my wife, certainly. You know, not the meeting, but the actual committing.”

Q So starting on company building, when we chatted before, you said to me that when scaling, two elements matter more than any other, focus and hiring and culture. Taking these one by one, we often hear the importance of focus. How do you interpret the meaning of focus specifically towards company scaling?

A Yeah, I think, you know, startups can move incredibly quickly, and that's, it's usually a strength, and it's a desire, I think, to bite off maybe more all the time, and so while that can be great, it also can be a problem, and I think it's just critical to know where to focus and where to put that energy. You know, I think companies really early on in particular, but every stage, need to be able to define their customer, to understand the problem that they're solving for that customer, and then focus relentlessly on that, and, you know, that may change as you learn more. It's not to say that you, you have one focus and it never adjusts, But I think you have to, first of all, know what you're focusing on to know if you're on the wrong path or if you're on the right path. And so I always advise folks to just really understand and define that up front and, you know, be willing to be wrong, but to focus in on that. And I think when you dive in deeper, then what you have to be willing to do and be able to do is to actually say no. And I think there has to be a framework and a language within a company around no. And so, you know, I tell the team here every week to feel comfortable saying it, to practice it. And, you know, frankly, saying no, it's much, much harder than saying yes.

AI assessment note: “what you have to be willing to do and be able to do is to actually say no”

Q Well, I, I intend to take you up on it, and I might even BCC you in on a couple of emails. That would be wonderful. But in terms of the culture and the hiring that we mentioned, going to that second element of the scaling, it's forever a process and an education, really. But what have been some of your biggest learnings on culture with the scaling of Brightwheel?

A Yeah, I think when I started the company, I thought culture had to be organic, a mixture of all the best things that the early employees would bring from their prior companies, and I was wrong. I think, you know, one of the biggest lessons that I've learned is that need to actually be prescriptive about culture. The, you know, these are the values and these are the behaviors that make your company unique, that make it tick. And I actually think it's important to define that and instrument it then throughout the company in hiring and reviews and team meetings to really acknowledge it and be able to look at it and measure it and put it into action. Now, this doesn't mean building a wall and shutting out diverse perspectives. It simply means Working from a foundation with a solid understanding. Well, let me say this. I once heard Reid Hoffman say you want to build culture, not protect it, and I really like that. I think culture can evolve. It should be challenged, but you have to know where you're starting from.

AI assessment note: “one of the biggest lessons that I've learned is that need to actually be prescriptive”

Q kind of extrapolate ourselves at one level of Further from the funding itself to the ecosystem where a lot of that funding largely rests today, being the Valley. Similar to funding, there's a huge amount of glorification around the process of founding and scaling companies. I'm interested, though, for you, Dave, being at the epicenter every day with Brightwheel, how do you feel about this maybe glorification, maybe more personally?

A Yeah, I really appreciate this question here. I think the VC and startup world, it feels like, as you're saying, tend to kind of glorify, you know, the founding, the scaling of a company, the big milestones. It feels like to me, like we never hear about the challenges and the reality, which is that it is really hard. It's really, really hard. It takes a toll on family, on friendships, on health. I personally have had to let go of a lot of things that I care about, relationships, things that I enjoyed in order to do this, in order to make the time available to build this company. And so I think you have to be able to find that motivation when things are really hard. You have to want to fulfill the mission and be genuinely excited about the problems you're going to tackle and the people that are in the trenches with you. And you have to then know also that it's not always going to be peachy. It's sometimes It may seem externally, and so I think it just feels like a miss that we don't talk more about the failures. If you scroll TechCrunch or Twitter, it's kind of all about the big wins, the funding acquisitions, a ton of IPOs, and personally, maybe it's my own experience, but I would just much rather read about the product launch that didn't work, you know, the startup that didn't make it, or even just the day-to-day tactical misses, and I think startups are, in my opinion, much m…

AI assessment note: “I personally have had to let go of a lot of things that I care about”

Q But the other element I do want to ask, Dave, is often stated again, is the VC to founder relationship, it's a marriage. What are your thoughts on this analogy, Dave?

A I mean, I think it's fair in some ways, and I'd say that the relationship is super important. Your investors are people you're going to lean on, that you're going to rely on. They're going to have a major influence in the trajectory of the company. They're going to be supporting along the way. And they need to be aligned with the long-term vision of the company and the values and what the board dynamics will look like. And those are all things that you do need to uncover that do take time to do that. In many ways, you know, would suggest the kind of the intimacy and importance of a marriage. And while I'm trying to clearly thread the needle here, I will stand by my original statement and say, I just think you can condense it more when it comes to an investing relationship, maybe more than a personal relationship. I think when it's time to fundraise, then you spend the time, you do your diligence, you back channel the And you think through one of the ways that I can get more data and more information here. And so I think it would appear to me to be more straightforward to do that in a business setting rather quickly, just because there is enough information out there to get to an informed decision. And there's scenarios and concrete things that you can talk through with an investor about what the future could look like and making sure that that alignment is there. I would say it…

AI assessment note: “I think it's fair in some ways, and I'd say that the relationship is super important.”

Q Well, I, I intend to take you up on it, and I might even BCC you in on a couple of emails. That would be wonderful. But in terms of the culture and the hiring that we mentioned, going to that second element of the scaling, it's forever a process and an education, really. But what have been some of your biggest learnings on culture with the scaling of Brightwheel?

A Yeah, I think when I started the company, I thought culture had to be organic, a mixture of all the best things that the early employees would bring from their prior companies, and I was wrong. I think, you know, one of the biggest lessons that I've learned is that need to actually be prescriptive about culture. The, you know, these are the values and these are the behaviors that make your company unique, that make it tick. And I actually think it's important to define that and instrument it then throughout the company in hiring and reviews and team meetings to really acknowledge it and be able to look at it and measure it and put it into action. Now, this doesn't mean building a wall and shutting out diverse perspectives. It simply means Working from a foundation with a solid understanding. Well, let me say this. I once heard Reid Hoffman say you want to build culture, not protect it, and I really like that. I think culture can evolve. It should be challenged, but you have to know where you're starting from.

AI assessment note: “one of the biggest lessons that I've learned is that need to actually be prescriptive”

Q Okay, question for you. In that compressed time frame, how can founders really get to know VCs and build that real relationship and vice versa in a condensed and tightened time frame?

A The biggest advice that I get is time, time, time. And so like when it, when it comes time to do it, then clear your calendar and put in that time and get to know them is the biggest one. And I'd say both formally looking at a, at a pitch deck and talking through it and talking through the numbers, but also informally and going out for a coffee or just getting to know folks on a more personal level. And then back channeling is really important. And I think everyone, just like when you're hiring, everyone's going to offer their own references, but being able to go about finding out other folks who have worked with that VC, you And I can get to ask tough questions. And I think the easy thing is when something goes really well, when there's a great outcome and everybody's happy. The situations that I think are very telling is when it doesn't go well, when there's, there's an outcome that folks weren't happy about or things turned in the wrong direction, how people act in those situations, I think is really telling. I've been able to do that diligence on the folks that have come on board on Brightwell and, you know, feel really strong. I think about the character of the people that we have around the table.

AI assessment note: “clear your calendar and put in that time and get to know them”

Q on. I'm always fascinated by it. You mentioned the element of starting Brightwheel just as you were becoming a father. I think Serena was four months old. Tell me, being slightly older and other than tech stereotypes, how do you think about being an older founder and a father? And actually, interesting one here, how has being a father maybe changed how you think about growing and scaling a business?

A Yeah, no, I like the, uh, the older term. I hadn't thought of myself that way, but there's pros and cons. I think ultimately for me, I think it just means I'm going to be more stringent on my time because I have more demands on it. And so I am going to, as we talked about a little bit earlier, I'm just going to find chances and opportunities to say no and kind of put myself and my values first in some ways. And so it can be, you know, not taking that meeting or even just leaving the office in order to put Serena and Mia to bed. Each night, which, which is something that's super important to me, and so I think it, it just, it forces more strict prioritization. It also, frankly, just helps after potentially a tough day. It is always really humbling, I think, to come back and, and just kind of be around your, your kids and the simple joys that comes with that.

AI assessment note: “I think it just means I'm going to be more stringent on my time”

Q Well, that is very kind, and more to start to any episode, but I want to start today with a little about you. So tell me, how did you make your way into the world of startups, and did you always dream of reinventing the software platform Form some preschools with Bright Wheel, and what was that aha moment for you?

A Yeah. So I, I'll go way back and just say I'm a, I'm a first generation American. My parents came to the U S with very little. And so education, you know, was their bedrock and thereby was my bedrock and in many ways has been a focus of my career. So I started my career doing online learning with Cisco I,. I did strategy work with Teach for America. I built the K-II education team for Kindle within Amazon. And for me, it's always been about where technology can transform the daily experience for teachers, for parents, and ultimately for students. And so, most of that time in my career was spent in K-II, the kindergarten through high school, as we call it in the U.S. You fast forward a little bit, and just about five years ago now, my first child, our daughter Serena, was born, and I have all of a sudden this little human being in my hand, and it's funny as it sounds in hindsight, like, I didn't fully appreciate that when a kid shows up for kindergarten at age six, that they've had five years of development before that, and, you know, preschool, it's daycare, it's after school programs, it's all these really, really influential years of early education that Now, most studies say, like, those five years of life are perhaps the most impactful of any five-year span after that when it comes to growth and development. And so, you know, it is a must, certainly, for, for young kids and…

AI assessment note: “just about five years ago now, my first child, our daughter Serena, was born”

Q touched on the element of saying no. Because I tend to say yes to a lot of things, and then either cancel or don't show up, which is terrible. So I need your help. I'm always troubled. How to turn down opportunities politely in retaining a relationship. How do you think about this, and what would your advice be to me, and to the wider team, and to people listening?

A Well, first of all, I'd say I've gotten much, much better at it, and as part of this experience, and just having so little time. I think for me, it's always about being direct and being transparent, and so if I'm saying no to somebody, hopefully, usually I have some good reason, and so I, if I can offer advice, it would be just to Help the other side understand that. And I think it can be frankly uncomfortable because we have this inherent need to want to please. And I think what you see that transpire into often is like a soft yes, or let's talk about it later. I see it happen within teams. I see it certainly happen with investors who aren't willing to give a firm no. When I look back at my own experience, I think it's always better. And the other side is always going to appreciate more having the understanding and frankly, even the learning from a direct no. And so I think just getting used to it, getting the practice in place is super important.

AI assessment note: “it's always about being direct and being transparent, and so if I'm saying no”

Q For sure, but with the fundraising in mind, and with your being in the epicenter of the valley, how do you analyze the current sentiment and approach to fundraising today?

A Yeah, I think I'm somewhat outside of this on a regular basis, on a daily basis, but I think from when I pull up and look at it, or try to help advise other founders, it feels like every few years we look back, and we're always saying that there's more money now in higher valuations, and it tends to be what I'm hearing, and just more capital available in general. Often funds willing to bet on companies, perhaps with less proven than might've been required a few years ago. And so I think in many ways, it may be a good time to be a founder, but I also try to encourage founders to think through the implications of a raise, the timing of it, the size of it, and even the necessity of it because of what the expectations will be coming out of it. You know, for us, we just raised, I think what was interesting for the team to wrap their head around is that we're actually not going to change overnight and we're not going to turn around and spend that money tomorrow. And I've actually asked the team Essentially, it operates as business as usual for the remainder of 2018.

AI assessment note: “we're always saying that there's more money now in higher valuations”

Q Can I ask, with that in mind, VCs are a proactive and hungry bunch. What would you say then, advice-wise, to a founder who says, you know, I get inbound from VCs, what should I respond to them when I'm not raising? Should they do the coffee? How would you respond in terms of your advice to this kind of proactive approach from the VC?

A I think it's hard, because you want to build relationships, you want to be respectful, And I do admire a lot of folks out there and would love to spend the time. I just don't have it. And I think if I, if I have an extra half hour, an hour, I'm going to put that into the business. I'm going to put that into hiring. I'm going to put that into the thing that I should have been doing yesterday. And so what, you know, what I try to convey is, and what I advise is just the, the limitations on time and what that means and be able to give a future window potentially when that may change and the time to check back in again and just be polite, certainly about it. I'll be clear about it. But it is challenging, because I think it is the time and incentive structures are just a little bit different on each side.

AI assessment note: “what I advise is just the, the limitations on time and what that means”

Q kind of extrapolate ourselves at one level of Further from the funding itself to the ecosystem where a lot of that funding largely rests today, being the Valley. Similar to funding, there's a huge amount of glorification around the process of founding and scaling companies. I'm interested, though, for you, Dave, being at the epicenter every day with Brightwheel, how do you feel about this maybe glorification, maybe more personally?

A Yeah, I really appreciate this question here. I think the VC and startup world, it feels like, as you're saying, tend to kind of glorify, you know, the founding, the scaling of a company, the big milestones. It feels like to me, like we never hear about the challenges and the reality, which is that it is really hard. It's really, really hard. It takes a toll on family, on friendships, on health. I personally have had to let go of a lot of things that I care about, relationships, things that I enjoyed in order to do this, in order to make the time available to build this company. And so I think you have to be able to find that motivation when things are really hard. You have to want to fulfill the mission and be genuinely excited about the problems you're going to tackle and the people that are in the trenches with you. And you have to then know also that it's not always going to be peachy. It's sometimes It may seem externally, and so I think it just feels like a miss that we don't talk more about the failures. If you scroll TechCrunch or Twitter, it's kind of all about the big wins, the funding acquisitions, a ton of IPOs, and personally, maybe it's my own experience, but I would just much rather read about the product launch that didn't work, you know, the startup that didn't make it, or even just the day-to-day tactical misses, and I think startups are, in my opinion, much m…

AI assessment note: “It feels like to me, like we never hear about the challenges and the reality”

Q Listen, I'm so glad I'm not the only one who struggles to find reading time, so that's brilliant to hear. Tell me, tips to running distributed teams successfully?

A Yeah, and I, well, first of all, I'd love some. I mean, honestly, we're kind of in the early days of this, but I do think that companies, especially in the Valley, have to embrace it. We have an office in Denver. We have team members across eight different states right now. For us, it is, first of all, it's just about investing in it. So we're hiring a head of people to help ensure a great experience for everyone, no matter where they happen to have a desk and to be mindful about in our growth. And so we're investing a lot in things like video conferencing and travel and just ensuring that the things that originated with Brightwheel in our, in our first office and our small group, that the culture that we talked about, that we are instrumenting it throughout, ensuring that you can feel it and experience it. And it can be part of your day, wherever you happen to be.

AI assessment note: “For us, it is, first of all, it's just about investing in it.”

Q touched on the element of saying no. Because I tend to say yes to a lot of things, and then either cancel or don't show up, which is terrible. So I need your help. I'm always troubled. How to turn down opportunities politely in retaining a relationship. How do you think about this, and what would your advice be to me, and to the wider team, and to people listening?

A Well, first of all, I'd say I've gotten much, much better at it, and as part of this experience, and just having so little time. I think for me, it's always about being direct and being transparent, and so if I'm saying no to somebody, hopefully, usually I have some good reason, and so I, if I can offer advice, it would be just to Help the other side understand that. And I think it can be frankly uncomfortable because we have this inherent need to want to please. And I think what you see that transpire into often is like a soft yes, or let's talk about it later. I see it happen within teams. I see it certainly happen with investors who aren't willing to give a firm no. When I look back at my own experience, I think it's always better. And the other side is always going to appreciate more having the understanding and frankly, even the learning from a direct no. And so I think just getting used to it, getting the practice in place is super important.

AI assessment note: “if I can offer advice, it would be just to Help the other side understand”

Q of the winds that are clearly visible, often VCs attribute them to the brilliant term that is pattern recognition. I share Finn Barnes' view here. Finn Barnes said on the show the other day that pattern recognition is just another term for intellectual laziness. When you think of yourself, how do you think about the term pattern recognition, and what are the kind of immediate thoughts that come to mind?

A Yeah, so I heard that episode and caught myself nodding. I would tend to agree with Finn. I think I would say it can really work, and I imagine it can, it can help lead to success in many situations, but I also think it can tend to introduce biases, and as Finn said, I think some level of laziness, and you know, as I look at my own experience, there are no doubt, like, brands on my resume that helped me a lot, but there also were times when I had to kind of work against that pattern recognition, and I can't tell you how many people dismissed me early on because they couldn't grok the word childcare. It just, it didn't feel big to them. You know, I started the company in my mid thirties at the same time, starting a family, like our three and our daughter was four months old, not the best time. It was really interesting is when I came back to Silicon Valley after being in Seattle for a couple of years is there's this knock against MBAs. And like, well, if you look at my warden class alone, like the founders of Warby Parker, Harry's, Allbirds all came out of that single class. And so I think it tends to be that people want to kind of create these patterns. I mean, even, even to the extent of like, when I came back, I had a PC and folks would, would give you a look or say some comment because it wasn't a Mac. And so I just think it's, It's crazy how folks look for certain things an…

AI assessment note: “I would tend to agree with Finn. I think I would say it can really work”

Q Okay, so I'm flying to the West Coast. What book must I be reading, and why?

A Yeah, it's funny, because I listen to this question on your podcast, and I always think about my honest answer, which is, I just barely do any reading right now, because there's just so little time, I think, as a founder, a husband, a dad. I will tell you the last one I read, which has been a while, but, you know, one book I would recommend is called The Five Dysfunctions of a Team. It's just a really good framework, I think, to evaluate the health of any team, particular kind of executive team. It's super practical, really easy to read, but just gives a sense of some of the dimensions to kind of evaluate yourself and how things are operating.

AI assessment note: “one book I would recommend is called The Five Dysfunctions of a Team.”

Q So starting on company building, when we chatted before, you said to me that when scaling, two elements matter more than any other, focus and hiring and culture. Taking these one by one, we often hear the importance of focus. How do you interpret the meaning of focus specifically towards company scaling?

A Yeah, I think, you know, startups can move incredibly quickly, and that's, it's usually a strength, and it's a desire, I think, to bite off maybe more all the time, and so while that can be great, it also can be a problem, and I think it's just critical to know where to focus and where to put that energy. You know, I think companies really early on in particular, but every stage, need to be able to define their customer, to understand the problem that they're solving for that customer, and then focus relentlessly on that, and, you know, that may change as you learn more. It's not to say that you, you have one focus and it never adjusts, But I think you have to, first of all, know what you're focusing on to know if you're on the wrong path or if you're on the right path. And so I always advise folks to just really understand and define that up front and, you know, be willing to be wrong, but to focus in on that. And I think when you dive in deeper, then what you have to be willing to do and be able to do is to actually say no. And I think there has to be a framework and a language within a company around no. And so, you know, I tell the team here every week to feel comfortable saying it, to practice it. And, you know, frankly, saying no, it's much, much harder than saying yes.

AI assessment note: “what you have to be willing to do and be able to do is to actually say no.”

Q For sure, but with the fundraising in mind, and with your being in the epicenter of the valley, how do you analyze the current sentiment and approach to fundraising today?

A Yeah, I think I'm somewhat outside of this on a regular basis, on a daily basis, but I think from when I pull up and look at it, or try to help advise other founders, it feels like every few years we look back, and we're always saying that there's more money now in higher valuations, and it tends to be what I'm hearing, and just more capital available in general. Often funds willing to bet on companies, perhaps with less proven than might've been required a few years ago. And so I think in many ways, it may be a good time to be a founder, but I also try to encourage founders to think through the implications of a raise, the timing of it, the size of it, and even the necessity of it because of what the expectations will be coming out of it. You know, for us, we just raised, I think what was interesting for the team to wrap their head around is that we're actually not going to change overnight and we're not going to turn around and spend that money tomorrow. And I've actually asked the team Essentially, it operates as business as usual for the remainder of 2018.

AI assessment note: “there's more money now in higher valuations, and it tends to be what I'm hearing”

Q No, absolutely, but we chatted before, and you said that approaching the end of 2018, you have the same as before the cash was wired from the raise. I'm super interested then to hear, given that and the thoughtful approach to burn and scaling, how do you think about when is the right time to really put the pedal to the metal and spend?

A Yeah, for me, it's having an idea, first of all, how you're going to spend it. You know, we're not raising for the sake of raising, but we're raising as an instrument of growth, and then it's looking for opportunities to place bets First of all, and evaluate and understand those, and when they're working, being willing and able to invest and double down on them. It can be tough because a lot of that money is going to go into people, and it takes time to hire people, and so you've got to be able to think ahead and plan ahead, but ultimately, it's following our strategy and sticking to it as opposed to letting the funding be the guide.

AI assessment note: “when they're working, being willing and able to invest and double down on them”

Q Can I ask, how do you think about that, especially with maybe more growth-hungry VCs? How can founders maybe project that more reasonable spend, more reasonable burn approach without annoyance towards maybe a more growth-hungry, aggressive VC looking for continuous up rounds?

A Yeah, I think what I try to share my perspective with the team is I've now been in this area for a long time, and I've seen a lot of fantastic companies die, and it's usually because they ran out of cash. You know, the other scenarios is scaling up really, really fast and then rapidly scaling back and cutting folks back. And so Brightwheel is a generational company and I feel quite strong about that. And we're quite proud about the traction that we're making against that and ultimately get there. We have to earn it. We have to spend like a series B company as we are today. We have to deploy capital. That's going to get us returned and be thoughtful about what it means to be the series A or B company versus a C or D or later on. And I think it can become very addictive. It can be frankly, Easier to fuel growth with cash. And I think it's pretty damn appealing in some ways, but if the unit economics don't work, you really haven't built much more than a way to actually just spend venture dollars. So if you step back, I guess I fundamentally believe that resource constraints are a good thing. They force creativity. They force teams to prioritize. They force tough decisions, thinking through how we're going to spend that capital and keeping constraints on us in light of that and looking longer term. It's just, it's something that we have really open and frank discussions about inter…

AI assessment note: “what I try to share my perspective with the team is”

Q Can I ask, how do you think about that, especially with maybe more growth-hungry VCs? How can founders maybe project that more reasonable spend, more reasonable burn approach without annoyance towards maybe a more growth-hungry, aggressive VC looking for continuous up rounds?

A Yeah, I think what I try to share my perspective with the team is I've now been in this area for a long time, and I've seen a lot of fantastic companies die, and it's usually because they ran out of cash. You know, the other scenarios is scaling up really, really fast and then rapidly scaling back and cutting folks back. And so Brightwheel is a generational company and I feel quite strong about that. And we're quite proud about the traction that we're making against that and ultimately get there. We have to earn it. We have to spend like a series B company as we are today. We have to deploy capital. That's going to get us returned and be thoughtful about what it means to be the series A or B company versus a C or D or later on. And I think it can become very addictive. It can be frankly, Easier to fuel growth with cash. And I think it's pretty damn appealing in some ways, but if the unit economics don't work, you really haven't built much more than a way to actually just spend venture dollars. So if you step back, I guess I fundamentally believe that resource constraints are a good thing. They force creativity. They force teams to prioritize. They force tough decisions, thinking through how we're going to spend that capital and keeping constraints on us in light of that and looking longer term. It's just, it's something that we have really open and frank discussions about inter…

AI assessment note: “what I try to share my perspective with the team is”