Growth Rounds

“A way to think about it is if, let's just pretend you're growing a hundred percent a year, and then you raise a growth round for twenty-five million dollars, you sell a third of your company, and now your share count is a third bigger. But if your growth rate …”

“There basically are no rounds north of two hundred million dollar valuations because for an investor to make 10 X on a two hundred million dollar valuation with dilution, you have to have a two and a half billion dollar IPO. There just aren't very many. Most S…”

“Oftentimes a company that you've been involved with for years, that you're very close to the CEO, you're very close to the team, you're very proud of how far they've come, might not make you the best individual arbiter of how much do you invest in this growth …”

“If you're only air quotes only going to be worth two billion, how even no matter where you are, how can anyone afford to invest a higher than a five hundred million dollar valuation? Think about it. Just to make four X, even three X with some dilution risk, th…”

“I think you'll see some of those early stage funds will hire entirely separate teams, and some of them will use the exact same early stage team to prosecute those growth rounds.”

“When you're investing in growth rounds, In order to pay the top price, you need to believe that things are going to compound more than other people. Like, the growth is going to compound. The size of the market expansion is going to compound. And so, you need …”