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

20VC: Linear's Karri Saarinen How to be Grow Capital Efficiently in a World of BS Growth | How to Fundraise with Leverage | How to Select Investors and How to Give Them Homework in the Raise Process & Growth Lessons from Airbnb and Coinbase

Oct 30, 2024

Karri Saarinen, Co-founder and CEO of Linear, shares invaluable insights from his experience at Airbnb and Coinbase. He argues against the common notion that founders should 'always be raising,' emphasizing quality growth over hyper-growth. Karri discusses how to strategically leverage VCs by giving them productive 'homework.' He reflects on his best and worst fundraising meetings and shares lessons on minimizing dilution. The conversation highlights the importance of sustainable practices and user experience, offering a fresh perspective on scaling startups.

47:30

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Episode guests

Karri Saarinen

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Episode notes

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Quick takeaways

Sustainable growth is prioritized over hypergrowth, emphasizing real product demand rather than inflated metrics for long-term success.

Previous roles at Airbnb and Coinbase highlighted the importance of product quality and effective leadership in achieving impactful results.

Founders should approach fundraising by focusing on profitability and strategic decision-making, rather than succumbing to pressure from investors for rapid growth.

Deep dives

The Importance of Sustainable Growth

Sustainable and profitable growth is emphasized as a better alternative to rapid expansion fueled by significant spending. The speaker argues that many startups fall into the trap of pursuing hypergrowth, which often leads to unsustainable business practices, such as overspending without generating adequate revenue. Citing the example of Linear, the approach is to focus on growth based on real demand for the product rather than artificially inflating growth metrics. This strategy allows businesses to maintain their integrity and ensures long-term viability.

Intro

3min

The Quest for Better Potatoes: A Reflection on Finnish Varieties

2min

Insights from Coinbase and Airbnb

10min

Strategic Growth: Finding Product Market Fit and Efficient Team Building

5min

Strategic Fundraising Insights for Startups

22min

Navigating the Sale: Beyond the Numbers

3min

Navigating Feature Creep and Enhancing User Experience with Innovative Tools

2min

Karri Saarinen is the Co-Founder and CEO of Linear. The company has raised from some of the best in the business including Sequoia and Accel. Before founding Linear, Karri was the principal designer at Airbnb and the founding designer at Coinbase.

10 Lessons with One of Silicon Valley’s Most In-Demand Founders:

How to Become a Master Fundraiser:

Why does Karri believe it is BS advice that founders should “always be raising”?
What is Karri’s biggest advice to founders on minimising dilution?
What do most founders think they know about fundraising but do not?
What is the best way to put your VCs to work? How can you give them homework to do?
What has been the single best VC meeting Karri has had?
What has been the worst VC meeting?

Product and Growth:

What does Karri mean when he says “founder must focus on quality growth over hypergrowth?”
How does Karri advise founders on how soon to release and monetise their first product? Wait for platform ready or ship more feature products and monetise?
What have been the single biggest product lessons for Karri from Airbnb and Coinbase?
What are the most commons ways that growth plateaus? What breaks first?

Karri AMA:

Brian Armstrong or Brian Chesky; who would you invest in first?
Would you sell Linear today for $3BN in cash?
What do you know now that you wish you had known when you started?
What did you believe that you now no longer believe?

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