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

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

Mar 24, 2023

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.

49:24

Creator website

Episode guests

Mike Maples, Jr

AI Chapters

Episode notes

Intro

3min

Essential Lessons for Founders from Recent Financial Crises

1min

Strategic Preparedness in Crisis

5min

Navigating Crisis: Financial Agility and Communication Strategies

17min

Navigating Blame and Fiduciary Duties in Banking Crises

2min

The Consequences of Irresponsible Economic Practices

3min

Navigating Financial Stewardship and AI in Startups

14min

Final Thoughts and Essential Tools for Startups

3min

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?