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The real value in this post is maybe how the VC thinks about risk rather than a how a founder should. The need for structure in something as ephemeral as startu

by sonink 10y ago

The real value in this post is maybe how the VC thinks about risk rather than a how a founder should. The need for structure in something as ephemeral as startup risk definitely stands out.

tommynicholas 10y ago
I think that value is pretty big actually, it's something founders need to be deeply aware of. I wrote about one instance where this comes up a lot here - why raising money pre-launch is often easier than post-launch https://medium.com/@tommyrva/why-is-raising-your-seed-round-pre-launch-often-easier-c55364838ca1 https://medium.com/@tommyrva/why-is-raising-your-seed-round-...
- lpolovets 10y ago
  Great post. I think part of de-risking is that sometimes you find out your assumptions don't hold. E.g. you thought there was a $5b opportunity, but after launching you can quickly see that you were wrong. In that respect, it's much better to fundraise before you launch because you wouldn't be able to raise post-launch, but then you still have to figure out what to do after you have money but find out your idea isn't great.
  - tommynicholas 10y ago
    100% true! I'll admit, I intentionally avoided addressing that in the post, I wanted to focus on the tactics rather than the larger question the efficacy of these tactics raise. There's a counter-argument even I would make which is: if it's true that it's easier to raise pre-launch for these reasons, does that mean you should? Not sure.
the_watcher 10y ago
Agreed, however, if you're a founder who plans to raise money, they're helpful barometers to look at.
gwbas1c 10y ago
Having seen a lot of founders who are just poker players, or full of hot air, this article provides a good objective way to unemotionally evaluate a startup. This is important, because it's really easy to get excited about something that just isn't going to go anywhere because the leader is charismatic.

by sonink 10y ago

The real value in this post is maybe how the VC thinks about risk rather than a how a founder should. The need for structure in something as ephemeral as startup risk definitely stands out.

tommynicholas 10y ago

I think that value is pretty big actually, it's something founders need to be deeply aware of. I wrote about one instance where this comes up a lot here - why raising money pre-launch is often easier than post-launch https://medium.com/@tommyrva/why-is-raising-your-seed-round-pre-launch-often-easier-c55364838ca1 https://medium.com/@tommyrva/why-is-raising-your-seed-round-...

lpolovets 10y ago
Great post. I think part of de-risking is that sometimes you find out your assumptions don't hold. E.g. you thought there was a $5b opportunity, but after launching you can quickly see that you were wrong. In that respect, it's much better to fundraise before you launch because you wouldn't be able to raise post-launch, but then you still have to figure out what to do after you have money but find out your idea isn't great.
- tommynicholas 10y ago
  100% true! I'll admit, I intentionally avoided addressing that in the post, I wanted to focus on the tactics rather than the larger question the efficacy of these tactics raise. There's a counter-argument even I would make which is: if it's true that it's easier to raise pre-launch for these reasons, does that mean you should? Not sure.

the_watcher 10y ago

Agreed, however, if you're a founder who plans to raise money, they're helpful barometers to look at.

gwbas1c 10y ago

Having seen a lot of founders who are just poker players, or full of hot air, this article provides a good objective way to unemotionally evaluate a startup. This is important, because it's really easy to get excited about something that just isn't going to go anywhere because the leader is charismatic.