Ohanian: VC deals split between consensus access plays and contentious nascent bets
Alexis Ohanian · 20VC: Alexis Ohanian on Why Now Was The Right Time To Start Seven Seven Six, The 2 Very Distinct Types of Deals In Venture & The Unbundling of Social in 2021 · Nov 19, 2020 · at 21:38
Alexis Ohanian, co-founder of Seven Seven Six and Reddit, explains his mental model for venture capital deal dynamics on 20VC.
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“There's the like intelligence test type deals where, you know, it's a repeat founder, really strong, obvious market. Maybe they're just taking a second swing at the thing they had done before. So you know, they're capable. You've worked with them before. Like it's, those are the kind of canonical, like hot type deal where you win because you get the call. Like you win because you won the deal, not because you necessarily identified something before other people did. And then there are other deals, which are the ones that really stir my cocoa, which are the ones where it's a super contentious type deal because the market they're going after the, you know, fill in the blank is just so nascent. Or so crazy that it may not work out at all, but if it does, the upside is massive.”
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