General Catalyst LPs stayed supportive despite the firm's market underperformance
David Fialkow · 20VC: The Founding of General Catalyst, What it Takes to Build a Firm That Stands the Test of Time, Why VCs Need to Give Founders Greater Permission to Go For It & Why Venture Capital is Like Tennis with David Fialkow, Co-Founder @ General Catalyst · May 16, 2022 · at 30:37
David Fialkow, co-founder of General Catalyst, illustrates how honesty during a difficult fundraise helped maintain LP trust.
0:00 / 0:17exact quote · 17.3s
720p mp4 · rendered on demand · StarZero watermark
“We had a tough fundraise. The market was off. We didn't have a lot of liquidity. And we went to our LPs and said, hey, things aren't great right now. We're really, like, feel like we underperformed the market over the last couple of years. But, and they all said, you're in the same situation as everybody else. We're going to be supportive of you.”
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 David Fialkow
Fialkow: Venture capital success is 100% about founders, not TAM
“It's a hundred percent about the founders. Not 99, it's a hundred percent. Forget about markets, forget about TAM, forget about even other co-investors. Myopically focus on your relationship with founders in choosing people who are going to build the next gene…”
Fialkow: Distributors refused to buy 'The Dissident' over Saudi fears
“Couldn't get the film sold. It was one of the best films that we ever made, and no film company would buy it. No film company would distribute it, because they honestly were all scared of the Saudis. And it taught me a lesson. Right after winning an Academy Aw…”
Fialkow: Founders should ignore TAM and CAC/LTV in early pitches
“So the first thing I would say is forget about markets. Forget about TAM. Forget about CAC LTV. Forget about all the things you think traditional people are going to ask you. Paint a picture for me. What do you want to build?”
Fialkow: Co-founders must prioritize business needs over protecting their friendship
“Most people who start business with their friends, I think, can make a mistake. They say, let the business never get in the way of the friendship. We said the exact opposite. Let the friendship never get in the way of business.”
Fialkow: Great founders do not need to be well-rounded
“Building a business is not like playing tennis. To be a tennis player, you have to learn how to head back in. You can't get away with it. Business is not like that. You don't have to be well-rounded. I mean, obviously, I'm a good example of that, right? What y…”