Goldberg: Best-case angel investments face decade lockups and over 50% dilution
Mark Goldberg · 20VC: Index Ventures Partner, Mark Goldberg on The Questions Founders Must Ask A Multi-Stage Fund Before Taking Their Money At Seed, Why Most Angels Will Lose Their Money & Why We Will See Our First $100Bn Neo-Bank Shortly · Mar 2, 2020 · at 14:30
Mark Goldberg is a partner at Index Ventures. He explains the financial and structural drawbacks that constrain angel investing returns even on successful portfolio companies.
0:00 / 0:11exact quote · 11.9s
720p mp4 · rendered on demand · StarZero watermark
“I mean, best case scenario, you're talking about having your money locked up for probably over a decade, at which point the company has raised so much additional capital that your position could be diluted down to less than half of what it started with.”
quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →
More from Mark Goldberg
Goldberg: VC portfolio services teams benefit investors, not founders
“I think one of the dirty secrets of multi-stage investing is that portfolio services teams are not for founders. They're for the VCs. They are a way to make something unscalable scale.”
Goldberg: Andreessen Horowitz's platform model has become a crutch for VCs
“If you go back to the innovation from 1015 years ago, when Andreessen Horowitz started, it was a great idea. It was this sense of, you know, excitement and innovation for venture. But I think where we are now is it's become more of a crutch to these organizati…”
Goldberg: Angel investors have worse odds of making money than playing roulette
“I think what most people fail to understand is that it's extremely risky. I mean, you probably have a better shot at going to a casino and winning roulette than making money angel investing.”
Goldberg: Early-stage consensus decision-making creates mediocre consensus funds
“The biggest mistake is when you try to make consensus decisions at the early stage, I think you end up with consensus funds.”
Goldberg: Growth founders should only prioritize price and non-interference
“The other thing I would agree with is that the later stages, that's all that matters. When you're doing it, when you're picking what growth investor you want to work with what you should care about is the price and them staying out of your way.”
Goldberg: Knowing too much domain information can ruin Series A investing
“If you know too much, because the crazy ideas are crazy, right? Like they, You can out think yourself from any good series A by overthink. I've done it myself. I've seen other people do it. And I think knowing too much can actually be dangerous.”