20VC: Three Core Lessons for Founders From the SVB Crisis From Financial Agility (Banking) to Constructing Scenario Plans and Mastering Crisis Communications | How The Western World Has Not Been Responsible with its Money & Why The Fed Is Backing Itself I
Mike Maples, Co-founder of Floodgate, shares invaluable insights from the recent SVB crisis. He emphasizes the necessity of scenario planning and financial agility for startups, advising founders on managing banking relationships effectively. Maples also highlights the critical role of crisis communication, encouraging transparency and radical humanity in tough times. He critiques the Western world's financial irresponsibility and urges for reform, making this discussion a must-listen for entrepreneurs navigating uncertainties.
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Scenario Planning for Startups
Use scenario planning to map choices against uncertain outcomes, like different lockdown durations during COVID-19.
Prepare for various scenarios and communicate your plans clearly to stakeholders.
question_answer ANECDOTE
SmarterDx's Response to SVB Crisis
Michael Gau at SmarterDx handled the SVB crisis well by presenting clear scenarios and options to investors.
He discussed potential outcomes and facilitated a collaborative discussion about the best course of action.
volunteer_activism ADVICE
Financial Agility for Startups
Prioritize financial agility over becoming a financial expert. Set up at least three bank accounts with some runway in each.
Ensure easy transfer of funds between these accounts for quick reactions to unforeseen events.
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Pirates, Dreamers, and the Power of Decisive Action
Christopher Lochhead
Play Bigger, co-authored by Christopher Lochhead and several others, provides a framework for businesses to dominate their markets by creating new categories. The book emphasizes the importance of defining a unique market space, crafting a compelling narrative, and building a strong brand identity. It offers practical strategies for businesses to differentiate themselves from competitors and establish themselves as category leaders. The book's insights on category design, brand building, and market leadership have made it a valuable resource for entrepreneurs and business leaders. Its practical advice and real-world examples make it accessible and applicable to a wide range of businesses.
Mike Maples is one of the OGs of seed investing. As the Co-Founder of Floodgate, he has backed the likes of Twitch, Okta, Lyft, Twitter and more. Mike has been on the Forbes Midas List eight times in the last decade and was also named a “Rising Star” by FORTUNE and profiled by Harvard Business School for his lifetime contributions to entrepreneurship.
In Today's Episode with Mike Maples We Discuss
1.) Lesson from SVB #1: The Importance of Scenario Planning:
What is the right way to do scenario planning in startups?
What is the difference between good vs bad scenario planning?
What do the best scenario plans include and involve?
What is the right way to communicate these scenario plans to your stakeholders?
2.) Lesson from SVB #2: The Importance of Financial Agility:
What does it mean for a startup to be "financially agile"?
From a banking relationships perspective, what can startups do to be financially agile?
How many accounts should a startup have? How much runway should be in each?
Should startups bank with startup banks as well as traditional banks?
Should startups have their money in sweep accounts and money market accounts?
3.) Lesson from SVB #3: How to Master Crisis Communications:
Why is it so important for founder to over-communicate in tough times?
How transparent should they be in these communications?
What does Mike mean when he says "be radically human"?
If Mike were to face a crisis, what would he do differently in the way he communicates to his LPs?
4.) Lessons from SVB: The Wider World:
Why does Mike believe the level of quantitative easing that occurred in COVID was scandalous?
Does Mike believe the USD will continue to be the reserve currency of the world?
Will we be in a better or worse macro situation by the end of the year?
Has Mike ever had a company that achieved true PMF and failed?
The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch 
