Sahil Lavingia

Sahil Lavingia quotes on venture capital

Founder Gumroad, funder @ shl.vc

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1

A CEO’s first job is to get the company capitalized. A CEO’s second job is to recruit a team. A CEO’s third job is to provide them with clarity so they can solve their customers' problems. A CEO’s fourth job is to get out of the way until one of the above is no longer true.

2

In SF I learned: the best VCs don’t really know what’s going to take off. In LA I learned: the best producers don’t really know what’s going to be a hit. Don’t chase success. Create what you think should exist. No one knows until everyone knows–and by then it’s too late.

3

Customers have more money than VCs do.

4

Founders should be asking VCs: What have you built?

5

Pro tip: If you're bootstrapping, you can still take advantage of venture capital by using all the VC-subsidized software available on the market.

6

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.

7

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

8

I see a lot of investors get blamed when startups prioritize growth at all costs instead of sustainability. It turns out, while VCs are nice enough to play bad cop, it's probably the CEO/founders who are still responsible for making the ultimate decision. So, blame accordingly!

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