Sahil Lavingia

Sahil Lavingia quotes on raising money

Founder Gumroad, funder @ shl.vc

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1

Things you don't have to do to start a company: - Quit your job - Learn to code - Write a business plan - Raise money - Hire employees Things you have to do: Start.

2

If you don’t own capital in a capitalist economy, you are the capital. Things you can own: - your own business - equity in someone else’s - shares in a public company - IP: words, stories, characters - real estate, land What will you own?

3

Simple rule for founders: don't take money from people you wouldn't hire. Simple rule for investors: don't give money to people you wouldn't work for.

4

Cold email is not a numbers game. Raising money is not a numbers game. Recruiting is not a numbers game. Dating is not a numbers game. Make yourself more compelling. Don’t blame the numbers.

5

Raising $10M isn't easy, but turning it into $10.1M is much harder.

6

If you’re having a hard time: - Raising money - Hiring people - Getting customers The problem may not be in your ability to fundraise, hire, or sell. Those are symptoms. The problem is probably more fundamental: lack of growth, lack of product-market fit, you.

7

You can tell how much money a startup has raised by how often they update their Terms of Service.

8

How the size of a VC fund relates to how much they actually invest in new startups... A “$40M fund” deploys $32M towards startups (-20% in management fees). Then at least half is reserved for follow-on capital: $16M. Cash is deployed over 3+ years. So $40M fund → $5M per year.

9

All work is remote, it’s just a question of how remote. All communication is asynchronous, it’s just a question of how delayed. All companies raise money, it’s just a question of who they raise money from: owners, investors, or customers.

10

Every fundraise is a failure. An admission that you aren’t able to do what you want with the money you have. Every hire is a failure. An admission that you aren’t able to do what you want with the team you have.

11

Meeting with people in Silicon Valley: Raising money is easy, finding talent is near impossible Meeting with people in Hollywood: Finding talent is easy, raising money is near impossible

12

Perks of raising VC: - Money - PR cycle to impress your high school friends - Meeting most tech founders in your city - Investor summits where you can shake hands with people like Al Gore - A board member - Investors who'll probably help if you take the time to ask

13

In the past I raised money from investors who could help make me rich. In the future I plan to raise money from people who I want to make rich.

14

The less you need something, the easier it is to get: raising money, hiring great people, customers, and more.

15

Pre-seed rounds are just a new name for "friends and family" that obscures the connections/privilege required to raise money.

16

The #1 reason to raise money is so you don't have to raise money anymore.

17

If I were raising money for a new company, I would raise it from First Round and a bunch of (mostly founder) angels.

18

Raising money feels like treading water. You can do it for a while but you’re always very aware something needs to change eventually... or you’ll die. Holidays make this worse because your burn rate stays the same but productivity tanks!

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