Danny Rimer Cares Least About Valuation and Initial Market Size
Danny Rimer · 20VC: Index's Danny Rimer on His Biggest Lessons On Price, Ownership, Board Dynamics & Building Consumer Businesses from Backing The Likes of King, Skype, Farfetch, Glossier and more... · Dec 3, 2018 · at 29:37
Danny Rimer, partner at Index Ventures, discusses price sensitivity and calculating exit multiples in early-stage seed and Series A investments with host Harry Stebbings.
0:00 / 0:56exact quote · 56.9s
720p mp4 · rendered on demand · StarZero watermark
“So if my partners were around the table, they'd probably tell you that I'm probably the partner who cares least about price, that if I think that the entrepreneur and the opportunity is large enough, I just want to be an investor in that company, and that I'm not really worried about the total available market, because I think that if the company is successful, they're going to redefine what that total available market is, and I'm not really that concerned about price, Because we're coming in very early, and so the earlier we come in, the less we're going to regret it over time, so I think those are areas or mirages in our industry, which is worried about what the end outcome will be, and therefore sort of doing these reverse calculations on what the multiple will be early on. That's why I love being a seed and series A investor, because you're in there from the start, so you really can't blame price If it's not successful.”
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 Danny Rimer
Danny Rimer: TAM and market size are noise in startup investing
“One of our tenants is definitely that market size TAM is noise.”
Danny Rimer: Index Ventures portfolio company Joost was a 'shit show'
“Being an investor in Juiced, which was a shit show”
Danny Rimer: Sector, impact, and geographic funds compromise on investment quality
“I'm not a huge fan of sector funds because I think that with sectors, you're not looking for the best companies. You're looking for the best company in that sector. I'm not a fan of impact funds because you're rationalizing A mediocre investment because you're…”
Danny Rimer: Investors should abandon theses to back extraordinary founders
“If the person's extraordinary, throw all theses out the window and just back the founder.”