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Kara Nortman: Founders focusing on exits in first pitch are a red flag

Kara Nortman · 20VC: How To Assess Founder Psychology, Why Talking About Financial Returns In The First Meeting Is Always Wrong & How To Allocate Time Amongst A VC Portfolio with Kara Nortman, Partner @ Upfront Ventures · Dec 7, 2016 · at 28:20

Kara Nortman is a partner at Upfront Ventures. Speaking on 20VC, she discusses her primary turnoff when evaluating entrepreneurs during initial meetings.

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“Somebody who's talking about exit in the first meeting. And I should say not, and not exit in terms of, you know, because we may ask that sometimes, hey, where does this go? What happens? Who do you think might this might be a part of someday more like they're talking about financial returns and outcomes in a way where it's clear that that's their pure mode. That's their main motivator.”

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More from Kara Nortman

Opinion
Nortman: Deal picking accounts for at least 50% of VC value creation
“I definitely think the picking is 50% or more, but I very much believe in the doing”
Kara Nortman Dec 7, 2016 ▶ 16:18 20VC: How To Assess Founder Psychology, Why Talking About Financial Returns In The First Meeting Is Always Wrong & How To Allocate Time Amongst A VC Portfolio with Kara Nortman, Partner @ Upfront Ventures
Assertion Partly supported
Nortman recruited Sean Rad to IAC before he created Tinder
“I went in and recruited Sean Radd into IAC and gave him his first business plan, which turned into something completely different. It wasn't Tinder. He took it and very much made it his own, but it was something I got involved with the day-to-day of in the fir…”
Kara Nortman Dec 7, 2016 ▶ 8:36 20VC: How To Assess Founder Psychology, Why Talking About Financial Returns In The First Meeting Is Always Wrong & How To Allocate Time Amongst A VC Portfolio with Kara Nortman, Partner @ Upfront Ventures
Insight
Nortman: Selecting board members for brand over chemistry is a founder mistake
“I think this is a mistake a lot of people make as founders, which is to try to get the biggest names or something that they think is sort of like a brand of a particular board member without really doing a lot of work to make sure that you have the right chemi…”
Kara Nortman Dec 7, 2016 ▶ 9:44 20VC: How To Assess Founder Psychology, Why Talking About Financial Returns In The First Meeting Is Always Wrong & How To Allocate Time Amongst A VC Portfolio with Kara Nortman, Partner @ Upfront Ventures
Insight
Nortman: Board seats drive gender diversity faster than VC partner roles
“I think that's the fastest place to make change, getting more women into venture roles, into, you know, kind of real decision-making GP roles in firms that can write real check is another one. It seems like that takes longer than changing the board, but both o…”
Kara Nortman Dec 7, 2016 ▶ 24:32 20VC: How To Assess Founder Psychology, Why Talking About Financial Returns In The First Meeting Is Always Wrong & How To Allocate Time Amongst A VC Portfolio with Kara Nortman, Partner @ Upfront Ventures
Disclosure
Nortman: Upfront partners only invest in about two new companies per year
“We only invest in about two companies a year.”
Kara Nortman Dec 7, 2016 ▶ 16:50 20VC: How To Assess Founder Psychology, Why Talking About Financial Returns In The First Meeting Is Always Wrong & How To Allocate Time Amongst A VC Portfolio with Kara Nortman, Partner @ Upfront Ventures
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