Insight certainty 4/5 debate potential 2/5

Grinda: Startups Die From Lack of PMF and Founder Conflict, Not Competition

Fabrice Grinda · Fabrice Grinda – Canvassing Seed Stage Marketplaces at FJ Labs, Venture is Eating the Investment World 4 (Capital Allocators, EP.232) · Jan 24, 2022 · at 47:11

Fabrice Grinda, founding partner of FJ Labs, analyzes early-stage startup failure modes.

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“Actually the main thing founders worry about is competition, and yet the main thing that kills companies is product market fit, making the unit economics work, and co-founders fighting.”

quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →

More from Fabrice Grinda

Insight
Grinda: Employer reference checks on startup founders are a negative signal
“We tried doing reference checks on founders and realized that they were a negative signal. Some of the very best founders were horrible employees. They would talk back to their bosses. They would work on their startup at their job. They had the worst reference…”
Fabrice Grinda Jan 24, 2022 ▶ 47:25 Fabrice Grinda – Canvassing Seed Stage Marketplaces at FJ Labs, Venture is Eating the Investment World 4 (Capital Allocators, EP.232)
Disclosure
Grinda: Auto-signed angel legal documents to exit without reading them
“And in fact, I wouldn't even read any of the legal docs they ever sent me. I auto signed or docu signed every single doc they sent me from the investment docs all the way to the exit without even reading them.”
Fabrice Grinda Jan 24, 2022 ▶ 30:28 Fabrice Grinda – Canvassing Seed Stage Marketplaces at FJ Labs, Venture is Eating the Investment World 4 (Capital Allocators, EP.232)
Assertion Supported
Grinda: AngelList study proves high-volume qualified investing increases fund IRR
“AngelList did a study of all of their different mini funds on AngelList to see which ones were the most successful. And their ultimate conclusion was The more qualified deals, and of course we need to define what qualified means, you invest in, the higher your…”
Fabrice Grinda Jan 24, 2022 ▶ 37:52 Fabrice Grinda – Canvassing Seed Stage Marketplaces at FJ Labs, Venture is Eating the Investment World 4 (Capital Allocators, EP.232)
Disclosure
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Fabrice Grinda Jan 24, 2022 ▶ 39:21 Fabrice Grinda – Canvassing Seed Stage Marketplaces at FJ Labs, Venture is Eating the Investment World 4 (Capital Allocators, EP.232)
Disclosure
Grinda: FJ Labs blindly backs previous successful founders in their next ventures
“And number three, founders we backed in the past that have done well for us, we will back them blindly in whatever they do next.”
Fabrice Grinda Jan 24, 2022 ▶ 41:13 Fabrice Grinda – Canvassing Seed Stage Marketplaces at FJ Labs, Venture is Eating the Investment World 4 (Capital Allocators, EP.232)
Opinion
Grinda: Concentrating on one Uber early beats high-volume venture models
“If you find Uber or Airbnb early, if that's all you do for the vast decade, you're probably going to do better than with my approach.”
Fabrice Grinda Jan 24, 2022 ▶ 44:46 Fabrice Grinda – Canvassing Seed Stage Marketplaces at FJ Labs, Venture is Eating the Investment World 4 (Capital Allocators, EP.232)
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