Navigating the Difficult Decision to Pivot or Persevere in Startup Investing

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Exploring the delicate balance in deciding to fund a struggling startup or cut ties, emphasizing the value of founders' time and resources while discussing the psychological challenges of continuing to invest. The chapter also highlights the significance of networking events like Founder Fridays for founders to share experiences and solutions.

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Todays show:

Jason joins David Clark of VenCap to discuss what distinguishes longevity and success in VC (5:25), the importance of strategy and timing when selling (25:47), preparing with founders for when things may go south (48:43), and more!

Timestamps:

(0:00) David Clark joins Jason.

(2:41) Looking at the data behind VenCap’s approach to alpha vs beta, managers and their over 500 investments to date.

(5:25) What distinguishes longevity and success in VC.

(9:15) Analyzing the data from David's chart covering 12,000 companies and the power law.

(10:34) Gusto - Get three months free when you run your first payroll at http://www.gusto.com/twist

(12:43) Portfolio strategy and finding that 1% of fund returners.

(18:59) The value of investing in a company over a longer period of time.

(21:23) Northwest Registered Agent - Get a 60% discount on your next LLC at - ⁠https://www.northwestregisteredagent.com/twist⁠

(22:17) The challenges VenCap faces when looking at seed managers.

(25:47) The importance of strategy and timing on selling.

(29:18 ) Uizard - Get 25% off Uizard Pro for an entire year at http://www.uizard.io/twist