The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch

20VC: Notion's Founder on "Founder Mode": When it Works & When it Doesn't | Why The Way Startups Fundraise & Construct Boards is Broken | Raising at a $10BN Valuation in Peak Bubble Times and How Notion Has More Money Than Ever Before with Akshay Kothari

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Sep 18, 2024

Akshay Kothari, Co-founder of Notion and former VP of Product at LinkedIn, shares insights on the challenging 'Founder Mode.' He highlights the power of veto decisions and reflects on crucial opportunities Notion missed. Akshay discusses their decision to raise $50M without needing the funds and what led to a $270M round at a $10B valuation. He also touches on the dynamics of building a supportive board and the importance of lean operations in a rapidly growing startup.

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ADVICE

Systems Design over Headcount

Design systems to improve individual output instead of simply adding headcount.
At Notion, tagging support tickets enabled engineers to directly address user needs, eliminating the need for product ops and research roles early on.

INSIGHT

Rethinking Org Structures

Traditional organizational structures are being questioned and reevaluated.
Leaders should consider alternative approaches like founder mode and adapt organizational design to fit their company's needs.

ADVICE

The Power of Veto

Founders should use their veto power to maintain high hiring standards.
At Notion, both founders interviewed every candidate up to 500 employees, prioritizing quality over speed.

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Akshay Kothari is Co-Founder at Notion, one of the fastest-growing companies of the last decade. Akshay has run every function in the company from sales, to marketing to finance and even led their fundraising efforts raising $340M+ from Sequoia, Index and Coatue with the latest round pricing them at $10BN. Before Notion, Akshay was VP Product at Linkedin for 5+ years, leading all of their content efforts. He joined LinkedIn when his previous company, Pulse, was acquired by LinkedIn in 2013.

In Today's Episode with Akshay Kothari We Discuss:

1. Founder Mode, Veto Powers and Focus:

Does Akshay agree with "founder mode"? What are the biggest downsides to founder mode that not enough people are discussing?
Why does Akshay believe that the single greatest power of a founder is their "veto power"?
What is the biggest opportunity that Notion jumped on that they should not have done?
What is the biggest opportunity that Notion did not jump on that they should have jumped on?

2. Raising $50M @ $2BN Valuation:

Why did Ivan and Akshay decide to do this raise when they did not even need the money?
How did the fundraising process for this round go? Why did they choose Coatue and Index?
Why did Sequoia say no to this round?
With the benefit of hindsight, what does Akshay wish that they had done differently?

3. Raising $270M @ $10BN Valuation:

How did Sequoia come back into the frame with this round? Why did they say yes here when they did not before?
Why does Akshay believe that of all the investor brands, Sequoia is the most powerful? In what way does having Sequoia as an investor change the trajectory of the company?
Is Akshay concerned about how he will be able to scale into the $10BN valuation?
How does Akshay address the challenge of bringing new team members in with stock options priced at $10BN? How much of a blocker is that?

4. Boards and Social Media are F*******:

How is the way in which boards are constructed broken?
How does Akshay believe that boards should be constructed?
What roles should founders hire for in their board members?
Why is Akshay most concerned about the "Tiktokification of everything"?
Why does Akshay believe that social media has never been more concerning?