Motamedi: Most VC firm incubations fail due to cap table greed
Saam Motamedi · Saam Motamedi: Why Series B Won’t Make Money & Why $1M ARR is a BS Milestone for Series A | E1177 · 20VC with Harry Stebbings · Jul 15, 2024 · at 1:02:28
Saam Motamedi is a General Partner at Greylock. He discusses why internal startup incubations created by VC firms rarely succeed.
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“Broadly, I think incubations don't work for a number of reasons. I think most firms take too much of the cap table. There's negative selection bias where they don't get the best founders to want to work with them. They can't actually help. And so I broadly think incubations don't work.”
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