The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch 20VC: Investing Lessons from FC Seeding Uber, Airtable and Coupang | Why Pro Rata is the Original Sin in VC | Why Liquidity Has Died in 2024 | Why LPs are Pissed with VCs | The Hard Truth About Seed Fund Economics with David Frankel @ Founder Collective
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Oct 14, 2024 
David Frankel, Co-founder and Managing Partner of Founder Collective, shares insights from his impressive venture capital career, having backed giants like Uber and Coupang. He discusses why pro-rata rights may hurt founders and why Limited Partners are frustrated with VCs today. David dives into the evolving dynamics of seed funding, emphasizing the importance of adapting investment strategies in a shifting landscape. He reflects on the emotional challenges of guiding struggling startups and highlights the critical role of understanding entrepreneurs' characters in successful investments.
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Non-Consensus Investing
- Invest in non-consensus founders and markets.
- Look for orphaned founders or those who have failed before.
Cat Food Investment
- Harry Stebbings invested in a cat food company, Smalls, despite negative market sentiment.
- The company reached 50 million ARR but struggled to raise money due to biases against cats and DTC.
Breaking the Rules
- David Frankel broke his rules and invested a small check in a company with a high valuation.
- He did this because he liked the founder, despite his partners' disagreement.
