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

20VC: Why Startup Founders Have One Core Job, How To Reduce Risk & Increase Probability In Your Startup & Why You Should Not Send A Pitch Deck Pre-Investor Meeting with David Rogier, Founder & CEO @ Masterclass

Apr 26, 2019

David Rogier, Founder and CEO of Masterclass, shares insights from his impressive journey in the education sector. He emphasizes that startup founders have one core job: managing risk while raising VC. David argues against sending pitch decks ahead of meetings, explaining how it can backfire. He also discusses crucial questions founders should ask VCs and the importance of selecting the right investors for long-term success. Through personal anecdotes, he illustrates how his grandmother's lessons shaped his vision for transformative education.

Ask episode

AI Snips

Chapters

Books

Transcript

Episode notes

ANECDOTE

MasterClass Inspiration

David Rogier's grandmother, a Holocaust survivor, became a doctor despite facing discrimination.
This inspired him to found MasterClass, an education platform offering access to knowledge.

ADVICE

Founder's Main Job

A founder's primary job is preventing the startup from running out of money.
Focus on achieving milestones, not just time-based runway.

INSIGHT

Funding Calculation

Determine funding needs based on hypotheses to be proven.
Calculate the cost and double it to account for unforeseen delays and expenses.

Get the Snipd Podcast app to discover more snips from this episode

Get the app

David Rogier is the Founder & CEO @ Masterclass, the startup that brings you online classes taught by the world's greatest minds including Steve Martin, Natalie Portman, Margaret Attwood and more. To date, David has raised over $140m in funding for Masterclass from the likes of IVP, NEA, Javelin, Michael Dearing @ Harrison Metal, Atomico and past guests of the show Sam Lessin and Philip Krim. As for David, prior to founding Masterclass, he was on the other side of the table as an investor with Harrison Metal. Before venture, David spent time with IDEO helping to create new consumer products and brands.

In Today’s Episode You Will Learn:

1.) How David made his way into the world of startups? How a lesson from his grandmother when he was only 7 shaped the type of company David wanted to build?

2.) David has previously said, "as a founder, you have one job". What is that job? How does David think about how raising VC changes outcomes? Why does David think many founders approach fundraising the wrong way? What questions must founders always ask a VC pre-term sheet? How can founders do their work and diligence on the VC?

3.) Why does David try at all costs to not send the deck to the VC ahead of meeting? Why can this be damaging? How can founders say no politely? Does David agree with the conventional wisdom that "founders must always be raising"? What is the optimal way to structure relationship building with investors?

4.) What does David mean when he says, "pick your investors as board members, not investors"? What does David believe makes the truly special board members? What were David's biggest learnings from Michael Dearing @ Harrison Metal when it comes to boards? What does David believe are big red flags in potential future board members?

5.) When validating the idea and the product, how does David think founders should use testing to prove their thesis at every stage of the business? Why, if proved, does this automatically secure your funding for the next round? What do VCs like to see in this testing? How does David think about when is the right time to go and raise big?

Items Mentioned In Today’s Show:

David’s Fave Book: Creativity Inc

As always you can follow Harry, The Twenty Minute VC and David on Twitter here!

Likewise, you can follow Harry on Instagram here for mojito madness and all things 20VC.