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I believe the story is: their game failed, and they went back to Sequoia to return $5M in outstanding investment. Sequoia told them to 'keep it, and build somet
by jollybean 5y ago
I believe the story is: their game failed, and they went back to Sequoia to return $5M in outstanding investment. Sequoia told them to 'keep it, and build something'. So they tried the Slack thing.
What's funny is that he's the same dude who founded Flickr, which also started out as some kind of game. Ha ha.
- axiosgunnar 5y agoShows that VCs are investing in teams, not what happens to be that team‘s current pitch deck du jour.
- jollybean 5y agoGood VC's do that. Also, $5M is a small amount for Sequoia - and it would have been a hassle to deal with, and frankly, probably already written off. If you have a good founder and a team already moving ... $5M is actually enough to get a small team moving in a new direction so it's a smart choice. It's a smart choice in modern Valley language though, instinctively, most other investors would have not done that. While we can give credit to the investors, that only works in a system of plentiful bounty. You need to have large acquirers, tons of talent, etc. etc. in order for that investment logic to make sense.