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:) well I posted on a FYI - For Your Information only angle. My thoughts: seed valuations for YC Demo Day are probably on a all time high, VC's giving gifts to

by elmar 7y ago

:) well I posted on a FYI - For Your Information only angle. My thoughts: seed valuations for YC Demo Day are probably on a all time high, VC's giving gifts to be able to get in rounds looks like something out of Silicon Valley HBO, ok I remembered everything on SV HBO is based on real life events.

whoisjuan 7y ago
I think the most ridiculous thing is not even the gift, but the fact that it is a Tandem bike (just because of the name). What's the rationale there? "Ohh their name is Tandem. Let's buy them a Tandem bike to convince them to accept our term sheet. It's our fiduciary responsibility to do this stupid thing". For me, that's just a red flag. How little can you add to a company besides money, that you have to resort to this chaplinesque strategy?
- WillPostForFood 7y ago
  Why not? Personal relationships are a part of why deals are made. Showing some whimsy and personal attention isn't going to hurt, and costs what? ~500?
  - bch 7y ago
    Not really your point, but if somebody gifted a $500 tandem/boat anchor for a $30MM co, that might indeed be a red flag. A $500 tandem is probably a boat anchor no matter what the circumstances are...
    - mathattack 7y ago
      This is the norm in business. It forces reciprocity. It’s why most sales orgs spend so much on business entertainment.
      - bch 7y ago
        I (think) I know what you’re saying, what I’m saying is that if I said I was interested in your billion dollar automobile startup, and bought you a car as a gesture, you might be excited, until I handed you the keys to a used 1998 Hyundai Excel. Unless I really am missing the point, because a $500 bicycle really is a pretty cheap machine these days, let alone a $500 tandem. https://en.wikipedia.org/wiki/Hyundai_Excel https://en.wikipedia.org/wiki/Hyundai_Excel
        WillPostForFood 7y ago
        It's the thought that counts right? Tandem is the name, they are gifted a tandem bike, which reinforces the symbolism of doing something together. I'd hope it would be perceived either neutrally, or generate some very small positive feelings, but not negatively.
        bch 7y ago
        I appreciate all the positive readings. Maybe it’s that I’m personally more focused on downsizing than accumulating :)
        mathattack 7y ago
        More that anything creates reciprocity. It’s why I am very wary of taking things from vendors.
- ymolodtsov 7y ago
  It’s basically a joke. Jokes attract attention of other people. Investors need to set up a relationship with the founders.
- mandeepj 7y ago
  > I think the most ridiculous thing is not even the gift, but the fact that it is a Tandem bike (just because of the name). Similar to Governors convincing Bezos to open HQ2 on their state by writing product reviews on amazon.com, giant cactus and what not.
- Grustaf 7y ago
  Why is a sense of humour a red flag? Founders are people too you know.
austenallred 7y ago
> VC's giving gifts to be able to get in rounds looks like something out of Silicon Valley HBO It's actually super common. I've probably received 20+ random gifts. Everything from shoes to jackets to bitcoin miners and bottles of wine (I don't drink). If there's a $7.5m deal that will eventually be worth 10x that (say it returns $75m to the investor), a $200 tandem bike doesn't really move the needle.
- elmar 7y ago
  > It's actually super common I didn't know that, I knew that was normal practice on recruiting but I didn't imagined it on fundraising. > that will eventually be worth 10x The seed stage VC's are probably targeting more on the 100x - 1,000x range :)

by elmar 7y ago

whoisjuan 7y ago

I think the most ridiculous thing is not even the gift, but the fact that it is a Tandem bike (just because of the name). What's the rationale there? "Ohh their name is Tandem. Let's buy them a Tandem bike to convince them to accept our term sheet. It's our fiduciary responsibility to do this stupid thing". For me, that's just a red flag. How little can you add to a company besides money, that you have to resort to this chaplinesque strategy?

WillPostForFood 7y ago
Why not? Personal relationships are a part of why deals are made. Showing some whimsy and personal attention isn't going to hurt, and costs what? ~500?
- bch 7y ago
  Not really your point, but if somebody gifted a $500 tandem/boat anchor for a $30MM co, that might indeed be a red flag. A $500 tandem is probably a boat anchor no matter what the circumstances are...
  - mathattack 7y ago
    This is the norm in business. It forces reciprocity. It’s why most sales orgs spend so much on business entertainment.
    - bch 7y ago
      I (think) I know what you’re saying, what I’m saying is that if I said I was interested in your billion dollar automobile startup, and bought you a car as a gesture, you might be excited, until I handed you the keys to a used 1998 Hyundai Excel. Unless I really am missing the point, because a $500 bicycle really is a pretty cheap machine these days, let alone a $500 tandem. https://en.wikipedia.org/wiki/Hyundai_Excel https://en.wikipedia.org/wiki/Hyundai_Excel
      - WillPostForFood 7y ago
        It's the thought that counts right? Tandem is the name, they are gifted a tandem bike, which reinforces the symbolism of doing something together. I'd hope it would be perceived either neutrally, or generate some very small positive feelings, but not negatively.
        bch 7y ago
        I appreciate all the positive readings. Maybe it’s that I’m personally more focused on downsizing than accumulating :)
      - mathattack 7y ago
        More that anything creates reciprocity. It’s why I am very wary of taking things from vendors.
ymolodtsov 7y ago
It’s basically a joke. Jokes attract attention of other people. Investors need to set up a relationship with the founders.
mandeepj 7y ago
> I think the most ridiculous thing is not even the gift, but the fact that it is a Tandem bike (just because of the name). Similar to Governors convincing Bezos to open HQ2 on their state by writing product reviews on amazon.com, giant cactus and what not.
Grustaf 7y ago
Why is a sense of humour a red flag? Founders are people too you know.

austenallred 7y ago

> VC's giving gifts to be able to get in rounds looks like something out of Silicon Valley HBO It's actually super common. I've probably received 20+ random gifts. Everything from shoes to jackets to bitcoin miners and bottles of wine (I don't drink). If there's a $7.5m deal that will eventually be worth 10x that (say it returns $75m to the investor), a $200 tandem bike doesn't really move the needle.

elmar 7y ago
> It's actually super common I didn't know that, I knew that was normal practice on recruiting but I didn't imagined it on fundraising. > that will eventually be worth 10x The seed stage VC's are probably targeting more on the 100x - 1,000x range :)