Angel investor Dan Scheinman outlines his strategy against 'spray and pray' seed portfolio construction on 20VC.
0:00 / 0:07exact quote · 8.0s
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“I'm focused on finding those few companies that can provide really disruptive returns in order to be able to keep funding the business.”
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More from Dan Scheinman
Opinion
Older founders are more efficient in spend and thinking than younger ones
“Yes, I believe that older entrepreneurs have the same or more fire. Sometimes the younger entrepreneurs are as technically adept or more than younger entrepreneurs as They drive value. Because of their experience, they're actually more efficient, both in spend…”
Dan ScheinmanMay 21, 2018▶ 25:2020VC: Why The Days of Spray and Pray at Seed Are Over, How To Compete In A World of Sequoia Seed Funds & Why Price Doesn't Matter with Dan Scheinman, Angel Investor @ Zoom & Arista Networks
AssertionNot checkable as stated
Acqui-hires now yield only 1x to 1.5x returns for early investors
“What I've seen has been that, in reality, some of those transactions look a lot more like return of capital or maybe one and a half X kind of returns, and it's no longer that lucrative on that side.”
Dan ScheinmanMay 21, 2018▶ 7:2420VC: Why The Days of Spray and Pray at Seed Are Over, How To Compete In A World of Sequoia Seed Funds & Why Price Doesn't Matter with Dan Scheinman, Angel Investor @ Zoom & Arista Networks
AssertionNot checkable as stated
Big tech is slowing acqui-hires due to internal backlash over retention
“A lot of those companies are slowing down the tech and talent deals because what they found was they were Angering their existing employee base”
Dan ScheinmanMay 21, 2018▶ 7:3720VC: Why The Days of Spray and Pray at Seed Are Over, How To Compete In A World of Sequoia Seed Funds & Why Price Doesn't Matter with Dan Scheinman, Angel Investor @ Zoom & Arista Networks
AssertionNot checkable as stated
More tech companies were created from 2008 to 2018 than prior history
“There have been more companies created in the last 10 years than probably the entire technology business before that”
Dan ScheinmanMay 21, 2018▶ 3:5820VC: Why The Days of Spray and Pray at Seed Are Over, How To Compete In A World of Sequoia Seed Funds & Why Price Doesn't Matter with Dan Scheinman, Angel Investor @ Zoom & Arista Networks
AssertionNot checkable as stated
Acqui-hires are becoming increasingly unfavorable for early-stage investors
“A lot of the large companies are no longer really thrilled with tech and talent acquisitions, and those Acquisitions are turning into less and less friendly for early investors”
Dan ScheinmanMay 21, 2018▶ 3:5820VC: Why The Days of Spray and Pray at Seed Are Over, How To Compete In A World of Sequoia Seed Funds & Why Price Doesn't Matter with Dan Scheinman, Angel Investor @ Zoom & Arista Networks
PredictionNot checkable as stated
Multi-stage VCs will abandon seed investing when the workload accumulates
“I think there's a chance that that may happen again, and as you know, these markets shift and twist and turn, and so I think there could be a chance that these guys, again, intercede, but aren't all that committed when they see how much work there is, where th…”
Dan ScheinmanMay 21, 2018▶ 9:3520VC: Why The Days of Spray and Pray at Seed Are Over, How To Compete In A World of Sequoia Seed Funds & Why Price Doesn't Matter with Dan Scheinman, Angel Investor @ Zoom & Arista Networks
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