Alex MacCaw, founder and CEO of Clearbit, shares guidance on 20VC regarding how leaders should balance transparency with avoiding employee distraction during fundraising rounds.
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“So you should be transparent, but giving people the minute by minute play by play updates to the funding round is just going to distract them.”
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More from Alex MacCaw
Insight
MacCaw: Founders Should Put Personal Trainers and Therapists on the Company Card
“As soon as you raise that first round, or you get to profitability, then put a personal trainer on the company card, put an exec coach on the company card, put a therapist on the company card. These are absolutely legitimate expenses, and you should be spendin…”
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Opinion
MacCaw: Venture Capitalists Are Just Salespeople Selling Financial Products
“So the first thing to realize that VCs are professional salespeople. That's all they are. They're salespeople that sell financial instruments.”
Alex MacCawSep 13, 2019▶ 22:4920VC: Clearbit Founder Alex MacCaw on How To Successfully Negotiate with Investors, What Value-Add Do VCs Really Bring & Why You Should Only Have Operators on Your Board
Insight
MacCaw: Profitability Is the Only True Leverage Founders Have With VCs
“If you can't walk away, you have no leverage. So get profitable. It's the only way you can walk away.”
Alex MacCawSep 13, 2019▶ 23:0020VC: Clearbit Founder Alex MacCaw on How To Successfully Negotiate with Investors, What Value-Add Do VCs Really Bring & Why You Should Only Have Operators on Your Board
Disclosure
MacCaw: Clearbit Expects Minimal Operational Help From Its VC Investors
“I tell our VCs that I actually don't want much help from them. If I want a recruiter, I'll pay for a recruiter, and there'll be a better recruiter than that VC because they're full-time.”
Alex MacCawSep 13, 2019▶ 24:3120VC: Clearbit Founder Alex MacCaw on How To Successfully Negotiate with Investors, What Value-Add Do VCs Really Bring & Why You Should Only Have Operators on Your Board
PredictionDidn’t hold up
MacCaw: Clearbit Will Add Operators, Not Investors, to Its Board
“So we will set up a board, and I'm planning on doing it next year, but we're going to add more operators to it rather than have any investors on it.”
Alex MacCawSep 13, 2019▶ 25:5720VC: Clearbit Founder Alex MacCaw on How To Successfully Negotiate with Investors, What Value-Add Do VCs Really Bring & Why You Should Only Have Operators on Your Board
Insight
MacCaw: Startups Should Delay Establishing a Formal Board Until Series B
“Definitely not for the seed. I would just raise the seed on all safes. For the A, try not to add to the board, and then maybe the B. Often you just don't have a choice. A lot of investors will require being on the board. There's kind of a luxury having the cho…”
Alex MacCawSep 13, 2019▶ 26:1220VC: Clearbit Founder Alex MacCaw on How To Successfully Negotiate with Investors, What Value-Add Do VCs Really Bring & Why You Should Only Have Operators on Your Board
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