Disclosure certainty 4/5 debate potential 3/5

Hustle Fund does not look for product-market fit when investing

Elizabeth Yin · 20VC: Why VCs Fundamentally Assess Founders The Wrong Way, Why VC Needs To Innovate On The Scouting Model & Why SAFE's and Convertible Notes Are The Future Of Investing with Elizabeth Yin, Founder & General Partner @ Hustle Fund · Nov 15, 2017 · at 14:41

Elizabeth Yin is General Partner at Hustle Fund, an early-stage VC firm. She discusses Hustle Fund's pre-seed investment strategy compared to post-seed and Series A investors.

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“And I think, frankly, like, it's post-seed or Series A investors who are most concerned with that. We are not looking for product market fit.”

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More from Elizabeth Yin

Prediction Held up
Startup fundraising will shift to crypto tokens within 10 years
“I actually think in 10 years, some of the craziness will level out. And maybe it's not on Bitcoin, but maybe it's on another token or so, that you will see fundraisers done differently in 10 years.”
Elizabeth Yin Nov 15, 2017 ▶ 21:40 20VC: Why VCs Fundamentally Assess Founders The Wrong Way, Why VC Needs To Innovate On The Scouting Model & Why SAFE's and Convertible Notes Are The Future Of Investing with Elizabeth Yin, Founder & General Partner @ Hustle Fund
Opinion
VCs assess founders on pitch skill and pedigree, not execution
“And very often VCs assess people based on those meetings, just basically by how well you talk. And also based on your resume, especially at the early stage, when you don't have a whole lot to show, Do you have pedigree or do you not have pedigree? VCs don't ac…”
Elizabeth Yin Nov 15, 2017 ▶ 4:15 20VC: Why VCs Fundamentally Assess Founders The Wrong Way, Why VC Needs To Innovate On The Scouting Model & Why SAFE's and Convertible Notes Are The Future Of Investing with Elizabeth Yin, Founder & General Partner @ Hustle Fund
Prediction Not checkable as stated
Hustle Fund decides on initial $25k checks after one conversation
“Then we'll be really fast to write a first check, a 25 K check. I think that since I'm a GP of hustle fund, we have to move fast ourselves. So within a conversation, pretty much like unless there's something jarring where we absolutely need a second conversati…”
Elizabeth Yin Nov 15, 2017 ▶ 8:32 20VC: Why VCs Fundamentally Assess Founders The Wrong Way, Why VC Needs To Innovate On The Scouting Model & Why SAFE's and Convertible Notes Are The Future Of Investing with Elizabeth Yin, Founder & General Partner @ Hustle Fund
Assertion Supported
Venture capital has failed to tap underrepresented minority founders
“Arlen Hamilton is going after underrepresented minorities and doing a lot of outreach around communities there. I think that's really innovative. No one has really tapped those communities.”
Elizabeth Yin Nov 15, 2017 ▶ 11:56 20VC: Why VCs Fundamentally Assess Founders The Wrong Way, Why VC Needs To Innovate On The Scouting Model & Why SAFE's and Convertible Notes Are The Future Of Investing with Elizabeth Yin, Founder & General Partner @ Hustle Fund
Disclosure
Hustle Fund bases follow-on checks on speed, not absolute traction
“And really what we're looking for, if we decide to write a follow on check, that criteria in part is based on the speed at which that priority metric is moving. It's not so much about where that number stands today.”
Elizabeth Yin Nov 15, 2017 ▶ 15:05 20VC: Why VCs Fundamentally Assess Founders The Wrong Way, Why VC Needs To Innovate On The Scouting Model & Why SAFE's and Convertible Notes Are The Future Of Investing with Elizabeth Yin, Founder & General Partner @ Hustle Fund
Prediction Not checkable as stated
SAFEs and convertible notes are the new wave of investing
“I like them a lot. I think actually this is the new wave of investing.”
Elizabeth Yin Nov 15, 2017 ▶ 22:50 20VC: Why VCs Fundamentally Assess Founders The Wrong Way, Why VC Needs To Innovate On The Scouting Model & Why SAFE's and Convertible Notes Are The Future Of Investing with Elizabeth Yin, Founder & General Partner @ Hustle Fund
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