NFX

“I have a company right now that's not doing well. And I was speaking to the founder last week and it's really not doing well at all. And they have like. Forty million dollars in the bank. And they shouldn't. Like, they don't deserve that money. They raised it,…”

“And when he talks about your life on network effects, he's, his idea is basically everything. If you could take all your decisions you make and instead of thinking of them as things you did or decisions you made or just like events in your life, if you looked …”

“Stan's currently not at NFX, which is where, where James is, the thing that they, I think they co-founded together, maybe they didn't co-founded together, but they were, you know, they've been doing business together for 20 years. Naturally, he would have been…”

“Less than three, 300 K from the founders ourselves, and then from a small round from NFX in in San Francisco. And then we became profitable on that.”

“You know, I see really every significant, meaningful startup has an impact on the culture, either It's driving that cultural change, or it is really cresting and surfing that cultural change.”

“I think what's really important is it's not about whether you're Earlier or later than your competitors on an absolute basis. It's really about who can achieve the necessary scale to be a breakout leader when they're closer to this critical mass point.”

“So I think the ratios that we think about are kind of roughly one dollar initial capital and two dollars for follow on capital. So that's the sort of benchmark we think about. We're pretty early on. We're like nine months in into the fund. So it's hard to see …”

“At the early, early stages, there is so much about passion involved in really foreseeing success, and if you as an investor are not passionate about this, you're not feeling the true passion for the entrepreneurs, you're not seeing that passion in them, then I…”

“And so that's why we haven't really failed yet. And we haven't ever lost anyone, any money, When we've been entrepreneurs and building companies.”

“We believe that often you need to identify a problem Figure out the language that addresses that problem, and then from that language, build a product that fulfills on the language.”

“We did a large study of companies that were, have been formed since 1994, 337 companies worth over a billion. And if you look at the market caps, the combined market caps of all these companies and identify, you know, which of them had network effects at their…”

“So by cross populating information between companies so that it's real, it's not just James telling you should have a higher benchmark. It's you seeing others have achieved that higher benchmark and they are just like you. That really helps to let people calib…”

“So what's happening is we're moving into a world where much of the growth, at least digitally, is going to be coming from paid, and so we are becoming necessarily more fans of paid and just doing it right.”