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

20VC: Index's Danny Rimer on Investing Lessons from Hits like Figma, Discord and Etsy to Missing Snapchat, Airbnb, Facebook & Spotify | Why Valuation is a Trap and Market Sizing, Signalling and Sector/Geo-Specific Funds are all Noise

Jun 17, 2024

Index Ventures' Danny Rimer shares lessons from missing out on Snapchat, Airbnb, Spotify, and Facebook. He discusses why valuation is a trap, market sizing is noise, and why sector/geo-specific funds are not important in venture capital. Rimer reflects on the importance of recognizing potential in early-stage investments for long-term success.

01:13:52

Creator website

Episode guests

Danny Rimer

AI Summary

Highlights

AI Chapters

Episode notes

Podcast summary created with Snipd AI

Quick takeaways

Backing extraordinary founders is crucial regardless of market size for success in venture capital.

Developing strong brands naturally through exceptional products is emphasized over deliberate branding efforts.

Discipline in decision-making, analyzing successes and failures, and creating investment theses are key in successful venture capital strategies.

Balancing pricing strategies with ownership stakes and learning from past mistakes to improve future investment decisions are crucial in venture capital.

Deep dives

The Importance of Backing Exceptional Founders Over Market Size

Backing extraordinary founders is highlighted as crucial, even if it means disregarding factors like market size. The podcast emphasizes that exceptional companies can thrive regardless of market conditions and that focusing on the founder's capabilities is key.

Decision Making and Commitment

01:22

Reinvent and Reboot for Success

01:16

Investing in Second Derivative Plays

01:10

The Power of Branding in the Technology Space

01:52

Intro

4min

Childhood memories, individuality, and staying true despite success

2min

Lessons on Prioritizing Main Goals and Decision-making Strategies

3min

Decision-making Process and Investment Strategy at Index

17min

Navigating the Investment Landscape: Insights on Signal Risk, Branding, and Decision-Making

17min

Missed Opportunities and Reflections on Investment Decisions

4min

Key Decisions at Critical Moments

5min

Lessons in Investment and Partnership Building

18min

Insights on Venture Capital and Investing with Danny Rimer

4min

Danny Rimer is a Partner @ Index Ventures and one of the most prominent VCs of the last two decades. Danny has led Index to be one of the top global firms on both sides of the Atlantic. Among Danny's incredible portfolio, he has led or been involved with Figma, Discord, Dream Games, Etsy, Glossier and Patreon.

In Today's Discussion with Danny Rimer We Cover:

1. The Biggest Lessons from Missing Snap, Airbnb, Spotify and Facebook:

How did Danny miss investing in Brian Chesky and Airbnb when Brian says "Index is the best investor that Airbnb never had"?
What was Danny's biggest takeaway from turning down Daniel Ek and Spotify multiple times?
Why did Danny turn down the chance to invest in Facebook at $10BN? What did he learn from this?
Why did Index not lead Snapchat's Series B? How did that decision change Danny's mindset towards the concentration of positions in a fund?

2. The Biggest BS Rules in Venture: Market Sizing, Valuations and Signalling

Why does Danny believe that "valuation is a mental trap"?
Why does Danny believe that TAM is "noise" and should not be used to assess an investment?
Why does Danny believe that stage, sector and geo-specific funds are BS?
Why does Danny believe there are no IPO windows? Are IPO markets always open to the best?
Why does Danny believe that signalling is BS and does not exist today?

3. Lessons from the Biggest Wins and Losses:

What are Danny's biggest lessons from Index's $BN win in King (Candy Crush)?
How did the Discord deal come to be? What are Danny's biggest takeaways from it?
What are Danny's biggest reflections from losing 10s of millions on Nasty Gal?
What is Danny's biggest advice to a new investor today?

4. Lessons from Two Decades Building Index into a Premier Firm:

What specifically has Index done to enable them to do what no one else has done and win on both sides of the Atlantic?
How did the Benchmark partnership shape much of how Danny has constructed Index today?
Who does Danny view as Index's biggest competition? How has it changed with time?
Why is Danny more bullish than ever on the UK despite Brexit?

Get the Snipd
podcast app

Unlock the knowledge in podcasts with the podcast player of the future.

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Save any
moment

Hear something you like? Tap your headphones to save it with AI-generated key takeaways

Share
& Export

Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

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

20VC: Index's Danny Rimer on Investing Lessons from Hits like Figma, Discord and Etsy to Missing Snapchat, Airbnb, Facebook & Spotify | Why Valuation is a Trap and Market Sizing, Signalling and Sector/Geo-Specific Funds are all Noise

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

The Importance of Backing Exceptional Founders Over Market Size

Creating Brands as a Byproduct of a Great Product

Influence of Discipline in Decision-Making and Investment Reserves

Evolution of Investment Theses and Decision-making Approaches

Balancing Ownership and Valuation Concerns in Investment Strategies

Learning From Mistakes and Successes to Enhance Investing Strategy

Investment Mistake Lessons Learned

Building a Successful Firm and Prioritizing Relationships

Decision Making and Commitment

Reinvent and Reboot for Success

Investing in Second Derivative Plays

The Power of Branding in the Technology Space

Get the Snipd
podcast app

AI-powered
podcast player

Discover
highlights

Save any
moment

Share
& Export

AI-powered
podcast player

Discover
highlights

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

20VC: Index's Danny Rimer on Investing Lessons from Hits like Figma, Discord and Etsy to Missing Snapchat, Airbnb, Facebook & Spotify | Why Valuation is a Trap and Market Sizing, Signalling and Sector/Geo-Specific Funds are all Noise

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

The Importance of Backing Exceptional Founders Over Market Size

Creating Brands as a Byproduct of a Great Product

Influence of Discipline in Decision-Making and Investment Reserves

Evolution of Investment Theses and Decision-making Approaches

Balancing Ownership and Valuation Concerns in Investment Strategies

Learning From Mistakes and Successes to Enhance Investing Strategy

Investment Mistake Lessons Learned

Building a Successful Firm and Prioritizing Relationships

Decision Making and Commitment

Reinvent and Reboot for Success

Investing in Second Derivative Plays

The Power of Branding in the Technology Space

Get the Snipdpodcast app

AI-poweredpodcast player

Discoverhighlights

Save anymoment

Share& Export

AI-poweredpodcast player

Discoverhighlights

Get the Snipd
podcast app

AI-powered
podcast player

Discover
highlights

Save any
moment

Share
& Export

AI-powered
podcast player

Discover
highlights