The Wisdom Wall
4 quotable lessons, heuristics and mental models. Every one is playable at the moment it was said. No fortune cookies allowed.
“And so now there's a path where investors, GPs get rich, where the outcome of the founders and their companies is irrelevant. Not to say they are aligned in opposite directions, but they're no longer aligned. And now, as a rational actor, you could say, why not maximize the guaranteed portion of the comp, the two…”
“every founder and every company and every board will tell you if we raise money, we're not going to spend it. We're going to stay frugal. That never happens. And instead of focusing on, you might ask a founder, what are the three things that matter most this year that are critical for your success? If you only focused…”
“There are companies that could be sold for a 102 hundred million dollars that results in life-changing outcomes for founders and early employees. If you raised a hundred million dollars too early, that exit path is no longer on the table. You can't sell the business for a hundred million dollars and make any money…”
“The venture markets have transitioned from a high margin cottage industry to a institutionalized lower margin industry, and that has a lot of implications.”