THE MORE MONEY YOU RAISE, THE LESS YOUR CHANCES OF SUCCESS; And Other Advice From VCs

 
 
 

Quite a few contrarian opinions in today’s collection of VC advice. Brew up the coffee pot and get ready for some serious learnin’!

“Maximizing Runway Can Minimize Success,” by Fred Wilson of Union Square Ventures: “The fact is that the amount of money startups raise in their seed and Series A rounds is inversely correlated with success. Yes, I mean that. Less money raised leads to more success. That is the data I stare at all the time. It makes little sense at face value but it is true based on more than two decades of experience in the startup world.

“Why Twitter’s Confidential S-1 Filing Is A Good Thing,” by Brad Feld of Foundry Group: “Prior to the JOBS Act, you made your first filing before any feedback from the SEC and then spent the next three to six months wrestling with the SEC – on their time frame and their rules – to get the filing finalized. If you didn’t time it right, you’d have to do new financial disclosure … And – each amendment to the S-1 (basically a new filing) was done in public, so everyone – including your competitors – got to see everything that was going on. And dissect it. And criticize it. And analyze it. And act on it. And say anything they wanted about it.”

“The Truth About Gamification,” by Fred Wilson of Union Square Ventures: “Gamification can amplify things people already like to do. But it cannot get someone to do something they aren’t inclined to do in the first place.”

“How To Take Exceptional Notes And Be Productive With Paper,” by Tomasz Tunguz of Redpoint Ventures: “As a PM at Google, I carried a laptop to every meeting I went to. I typed notes, jotted down action items, and distributed the minutes of almost each one of my meetings. I stayed organized and tracked my teams’ progress this way. But, as I learned when I starting working at Redpoint, outside the rainbow bubble of the Googleplex very few people take notes on laptops during meetings. It’s just impolite.”

“Why We Think B2B Crowdsourced Logistics Will Be A Big Hit,” by Mark Suster of Upfront Ventures“We expect much more of this supply chain innovation to knock out inefficiencies in consumer storage, dry-cleaning and other services where you consumers need to have physical pick-up and drop-offs that are time consuming and unnecessary. But we believe it is equally compelling to help existing businesses better compete with their online brethren.”