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

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

20VC: The Biggest Misconceptions & Hardest Truths About Seed Investing Today; Why The Best Founders Don't Need You, Why Uncapped SAFEs Are Good, Why Reserves Are Bad, Why Signalling is BS, Why Price Doesn't Matter with David Tisch & Terrence Rohan

Feb 5, 2024
David Tisch, Managing Partner at BoxGroup, and Terrence Rohan, Managing Director at Otherwise Fund, dive into the gritty realities of seed investing. They challenge misconceptions like signaling and argue why many traditional strategies, such as maintaining reserves, might actually hinder returns. Tisch insists seed investing remains an inefficient market, advocating for price insensitivity and individual decision-making over groupthink. They also discuss the evolving power dynamics favoring founders in today's funding landscape, emphasizing the need for authentic relationships.
01:29:27

Podcast summary created with Snipd AI

Quick takeaways

  • Seed investing requires conviction in the potential of a startup, even when it's not obvious to others.
  • Seed investors must navigate the challenges of valuations and the unpredictable nature of early-stage investing.

Deep dives

Seed Investing: The Importance of Conviction

Seed investing requires conviction in the potential of a startup, even when it's not obvious to others. The best founders have the ability to see and win, making them better investors. Building long-term relationships with founders is crucial and allows for access to attractive opportunities. Reserving capital for follow-on investments is important but requires careful consideration of fund allocation. The seed market is ripe for disruption due to market expansion, generational changes, and founder options. Seed investors must navigate the challenges of valuations and the unpredictable nature of early-stage investing.

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