Disclosure certainty 4/5 debate potential 2/5

Mehrotra: Coda runs secondaries every round, prioritizing employees over founders

Shishir Mehrotra · The Highs and Lows of Fundraising from Founders That Have Raised $1B w/ Calendly, Coda, LaunchDarkly · Nov 17, 2021 · at 30:37

Shishir Mehrotra, co-founder and CEO of Coda, discusses how startup founders should manage equity liquidity and secondary share sales for employees.

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“We've done a secondary in every round employees go first, founders go last, and I think that's very important.”

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 Shishir Mehrotra

Opinion
Mehrotra: Valuations surged because tech markets are larger than expected
“I mean, I think the valuations have gone up because the, everybody's realized the markets are a lot bigger than they thought, and so it all sort of trickles down as you see these companies get much, much larger than people expected.”
Shishir Mehrotra Nov 17, 2021 ▶ 2:05 The Highs and Lows of Fundraising from Founders That Have Raised $1B w/ Calendly, Coda, LaunchDarkly
Assertion Not checkable as stated
Mehrotra: VCs Relying Solely on Fees Cannot Sustain Great Funds
“It's absolutely not true that a VC that makes all their money off fees is going to continue to raise great funds.”
Shishir Mehrotra Nov 17, 2021 ▶ 22:05 The Highs and Lows of Fundraising from Founders That Have Raised $1B w/ Calendly, Coda, LaunchDarkly
Assertion Not publicly verifiable
Mehrotra: 60% of Spotify employees sold stock before direct listing IPO
“One stat about Spotify, one of the reasons it worked, 60% of employees had sold at least some stock before the IPO.”
Shishir Mehrotra Nov 17, 2021 ▶ 33:08 The Highs and Lows of Fundraising from Founders That Have Raised $1B w/ Calendly, Coda, LaunchDarkly
Disclosure
Mehrotra: 20% of every Coda employee's equity is Founders Preferred Stock
“At Coda, every employee, 20% of their stock is founders preferred.”
Shishir Mehrotra Nov 17, 2021 ▶ 35:27 The Highs and Lows of Fundraising from Founders That Have Raised $1B w/ Calendly, Coda, LaunchDarkly
Insight
Mehrotra: Founders should write the internal investment memo for VC partners
“The one thing I would encourage writing is write the investment memo that you think they should write to their partners. One of the things I think founders often miss is you're pitching a person who's going to become your advocate, right? And then think about …”
Shishir Mehrotra Nov 17, 2021 ▶ 44:12 The Highs and Lows of Fundraising from Founders That Have Raised $1B w/ Calendly, Coda, LaunchDarkly
Insight
Mehrotra: Do not take money if you cannot hit investors' return goals
“I, my view is don't take money from people if you don't think you can hit their investment goals. If you're misaligned with your investors, that's gonna be trouble at some point.”
Shishir Mehrotra Nov 17, 2021 ▶ 9:16 The Highs and Lows of Fundraising from Founders That Have Raised $1B w/ Calendly, Coda, LaunchDarkly
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