Insight certainty 4/5 debate potential 2/5

Beyroutey: Many viable companies should not raise venture capital

Jesse Beyroutey · 20VC: IA Ventures' Jesse Beyroutey on Game Theory and How It Impacts Investor Mindset, How To Avoid "The Pressure To Deploy" Today In Venture & Why Ownership Is The Single Most Important Parameter When Investing · Jul 22, 2019 · at 14:52

Jesse Beyroutey, Partner at IA Ventures, discusses why early-stage startups often mistake venture capital funding as validation for building a company.

0:00 / 0:16exact quote · 17.0s
720p mp4 · rendered on demand · StarZero watermark
“There are a ton of companies that are worth building that Are not necessarily with the present level of information that the founder has a great high volatility upside call option that makes it a good idea to raise a bunch of capital and to scale it.”

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 Jesse Beyroutey

Insight
Beyroutey: Abundant capital breeds lazy thinking and flawed rapid expansion
“Having a ton of capital can also cause a form of Just sort of lazy thinking where, for example, companies that have credibly high access to cheap capital and not enough discipline or first principles thinking might end up choosing to vertically integrate or to…”
Jesse Beyroutey Jul 22, 2019 ▶ 13:02 20VC: IA Ventures' Jesse Beyroutey on Game Theory and How It Impacts Investor Mindset, How To Avoid "The Pressure To Deploy" Today In Venture & Why Ownership Is The Single Most Important Parameter When Investing
Disclosure
Beyroutey: IA Ventures intentionally avoids growing fund size or scaling AUM
“We don't raise funds on a set and periodic cycle. And we've intentionally decided not to grow our fund size or assets under management”
Jesse Beyroutey Jul 22, 2019 ▶ 17:31 20VC: IA Ventures' Jesse Beyroutey on Game Theory and How It Impacts Investor Mindset, How To Avoid "The Pressure To Deploy" Today In Venture & Why Ownership Is The Single Most Important Parameter When Investing
Insight
Beyroutey: Startups compete with Big Tech by attacking niche flanks
“I think that that's fair in a whole host of markets, and so I think of that as a strong default, and I might compare that sentiment to the strong defaults in the nineties and early 2000 that you can't compete with Microsoft. And that's a strong default because…”
Jesse Beyroutey Jul 22, 2019 ▶ 8:54 20VC: IA Ventures' Jesse Beyroutey on Game Theory and How It Impacts Investor Mindset, How To Avoid "The Pressure To Deploy" Today In Venture & Why Ownership Is The Single Most Important Parameter When Investing
Insight
Beyroutey: Dominating one market rarely provides enough advantage for adjacent markets
“Achieving dominance in one market generally does not lead to enough extra advantage in the next market to then dominate that one too.”
Jesse Beyroutey Jul 22, 2019 ▶ 11:08 20VC: IA Ventures' Jesse Beyroutey on Game Theory and How It Impacts Investor Mindset, How To Avoid "The Pressure To Deploy" Today In Venture & Why Ownership Is The Single Most Important Parameter When Investing
Insight
Beyroutey: Early entry is the only strategy for outsized exit ownership
“Building ownership early is by and large, the only available strategy for having outsized ownership at exit.”
Jesse Beyroutey Jul 22, 2019 ▶ 21:44 20VC: IA Ventures' Jesse Beyroutey on Game Theory and How It Impacts Investor Mindset, How To Avoid "The Pressure To Deploy" Today In Venture & Why Ownership Is The Single Most Important Parameter When Investing
Insight
Beyroutey: Following news cycles is entertainment, not productivity
“I definitely believe that keeping up with the news and news cycle is more of a form of entertainment than a form of productivity.”
Jesse Beyroutey Jul 22, 2019 ▶ 30:00 20VC: IA Ventures' Jesse Beyroutey on Game Theory and How It Impacts Investor Mindset, How To Avoid "The Pressure To Deploy" Today In Venture & Why Ownership Is The Single Most Important Parameter When Investing
Made with StarZero

Turn any episode into a week of clips.

This entire site, over 1,200 episodes transcribed, diarized, checked and made playable, runs on the StarZero media pipeline. Drop in your own episode and the podcast clipper finds the moments worth sharing, cuts them, captions them, and reframes them for every feed.