Best 57 Quotes & Tweets on Venture capital

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1

The most valuable startup of the last decade didn’t raise money, didn’t have employees, gave away the cap table, and let anyone invest.

Naval Ravikant

Naval Ravikant

@naval

2

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.

Sahil Lavingia

Sahil Lavingia

@shl

3

Sources of personal competitive advantage: - delayed gratification - capital - network (who you know) - unique skills or combinations - platform - ability to suffer - family / home life - speed - ability to change your mind - ability to learn/adapt

Shane Parrish

Shane Parrish

@ShaneAParrish

4

After just five years, the Crypto Financial System offers fundraising, trading, lending, derivatives, payments, contracts, insurance. Its solutions are trustless, global, extensible, and 24/7. This is the power of being able to program money without permission.

Naval Ravikant

Naval Ravikant

@naval

5

There’s no investment where money works as hard as it does in a tech startup. Driven founders, leveraged with code, capital, media, and intellect, sweating every dollar spent. An enlightened society would educate investors, not restrict them.

Naval Ravikant

Naval Ravikant

@naval

6

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.

Sahil Lavingia

Sahil Lavingia

@shl

7

Customers have more money than VCs do.

Sahil Lavingia

Sahil Lavingia

@shl

8

Startups don’t need capital - they need signal.

Naval Ravikant

Naval Ravikant

@naval

9

Overrated goals: -Get a high-status job -Build a big social media following -Hit the bestseller list one week -Raise lots of money from investors Underrated goals: -Get a flexible job -Build a big email list -Write a book that sells every week -Earn lots of profit from customers

James Clear

James Clear

@JamesClear

10

Large companies don’t actually have a resource advantage over startups. Venture financing has become very efficient and a startup that cracks distribution will attract all the talent and money that it needs.

Naval Ravikant

Naval Ravikant

@naval

11

Founders should be asking VCs: What have you built?

Sahil Lavingia

Sahil Lavingia

@shl

12

This is a never ending thread of the very best online content and resources for early stage startups. Relevant for both self-funded/bootstrapped and venture backed pre-seed/seed stage companies.

Hiten Shah

Hiten Shah

@hnshah

13

I love how VCs criticize founders who derisk by giving themselves a market salary or taking secondary, yet none of them are willing to give up their 2% management fee.

Andrew Wilkinson

Andrew Wilkinson

@awilkinson

14

It's the worst of times and the best of times in tech right now. Big tech and a horde of zombie unicorns, backed by vulture capital, are spoiling our internet, stealing our data, and robbing their workers. But there's finally a seed of hope in the awareness that's growing.

DHH

DHH

@dhh

15

Assumptions that are good to operate by even if they aren’t always true: -The competition is smarter and better funded than you. -Without a great product, nothing else matters. -Projects will take 50% longer than expected. -10 minutes early is 5 minutes late.

James Clear

James Clear

@JamesClear

16

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.

Sahil Lavingia

Sahil Lavingia

@shl

17

There's a 1999-style crypto bubble forming that's going to tempt every startup to sell coins to the crowd instead of selling shares to VCs.

Naval Ravikant

Naval Ravikant

@naval

18

Seed is the new Series A. ICO is the new Series B.

Naval Ravikant

Naval Ravikant

@naval

19

VCs, universities, and accelerators provide more value from filtering and credentialing than they do from educating and advising.

Naval Ravikant

Naval Ravikant

@naval

20

Lots of college students reach out to me asking me about how to be a VC. I tell them: be a founder first. The best VCs are chosen by founders based on how much they can help bake the 10 year overnight success. Power laws plus adverse selection equal bad returns. Be a founder.

Garry Tan

Garry Tan

@garrytan

21

The crypto startups are showing that the last barrier to distributed startups is the geographic concentration of venture capital.

Naval Ravikant

Naval Ravikant

@naval

22

VCs: "Too many angels!" | Angels: "Too many incubators!" | Incubators: "Too many companies!" | Entrepreneurs: "Too little of Everything."

Naval Ravikant

Naval Ravikant

@naval

23

How to be a good VC to your founders: (1) Get out of their way & give them space. (2) When they need you, be available asap. (3) Make intros to people who are experts at what they aren't experts at. (4) Don't be overconfident just because you've seen it 100 times. Be patient.

Suhail Doshi

Suhail Doshi

@Suhail

24

Companies with predictable, recurring revenue can skip highly dilutive traditional venture rounds. From seed / development round, to debt against recurring revenue, to growth / secondary round.

Naval Ravikant

Naval Ravikant

@naval

25

After ICO market corrects, future raises will require independent research and smart-contract based governance of funds by token holders.

Naval Ravikant

Naval Ravikant

@naval

26

Value is seeping out of the venture business and into public blockchains where, ironically, individuals can play but VC funds cannot.

Naval Ravikant

Naval Ravikant

@naval

27

We never had venture funding, or even access to bank debt, in the early days. Because of this, Chris and I were maniacal about keeping costs down. We'd negotiate EVERYTHING. Furniture. Credit card fees. Software. Leases. Coffee beans. Paper. You name it, we negotiated it.

Andrew Wilkinson

Andrew Wilkinson

@awilkinson

28

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.

Sahil Lavingia

Sahil Lavingia

@shl

29

Worship the entrepreneur, not the venture capitalist.

Brian Norgard

Brian Norgard

@BrianNorgard

30

Why do VC-backed companies seem to spend so much money? 1. They’re forced to. 2. The easiest money to spend is other people’s money.

Jason Fried

Jason Fried

@jasonfried

31

New founders generally should avoid over-indexing on what is hot. What reporters write about, and what VCs post about on Medium are almost always the thing that was viable to work on 6 to 18 months ago. Look for first-hand problems that you can directly solve. Then solve them.

Garry Tan

Garry Tan

@garrytan

32

The VC arbitrage - get access to private, illiquid tech innovations and ride them to IPO. Blockchains are public & liquid from the start.

Naval Ravikant

Naval Ravikant

@naval

33

Investors famously look for ideas that are “huge, if true.” But the mind is wired to believe ideas are “true, if huge.” We trust what others trust: users, reviews, word of mouth, consensus. This is the conundrum of investing. Every great opportunity initially feels untrue.

James Clear

James Clear

@JamesClear

34

Defining the Real Startup as one that has hockey-stick growth out the gate, raises lots of money, forces people to work 80-100h weeks is the same gate-keeping bullshit that casts ideal founders as 20-something white hoodie nerds or Real Programmers as CS grads.

DHH

DHH

@dhh

35

Being an experienced angel investor is like knowing one of the six winning lottery numbers in advance.

Naval Ravikant

Naval Ravikant

@naval

36

If a VC hands you $12M on $100M post plus a $2M in cash to buy your common, don't hate the player, hate the game. Focus on your craft instead focusing your energy on what others got that you don't.

Suhail Doshi

Suhail Doshi

@Suhail

37

A common defense for venture capital is that “it’s just a tool! / Use it when you need it!”. But it’s more than that. It’s an ideology that speaks to what’s important, who is important, what success looks like, when it’s acceptable to screw over workers and customers.

DHH

DHH

@dhh

38

If you're raising money & everyone is passing on you. Just remember: (1) it happens to most ppl - find a support network, (2) you may need to go in cockroach mode, (3) consider raising less $ to survive, (4) seek angels vs est. funds, (5) C-class VCs are scared & it'll be harder.

Suhail Doshi

Suhail Doshi

@Suhail

39

Software has been eating the world alright. The financiers of such software consumed the bulk of the nutrients, and the rest of the world was left with the excrements. Talk about a shit show.

DHH

DHH

@dhh

40

A thing you’re going to start seeing more frequently: software companies entirely funded by software people, without needing to tap traditional large pools of money (VC funds backed by pensions/universities/family offices) basically ever.

Patrick McKenzie

Patrick McKenzie

@patio11

41

Most companies aren’t venture scale and are ill suited to raise venture (can’t grow at 100%+ per year). Yet most people starting tech companies think they need to raise venture.

Andrew Wilkinson

Andrew Wilkinson

@awilkinson

42

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

Sahil Lavingia

Sahil Lavingia

@shl

43

Raising tons of venture capital is all fun and games until 1) you're sued for fraud, 2) it runs out before you have a plan to return it 10x.

DHH

DHH

@dhh

44

You should be nervous right now if your business: - Relies on a platform (FB/Google) - Relies on advertising revenue - Is burning money/venture backed - Has low gross margins or hasn’t figured out monetization

Andrew Wilkinson

Andrew Wilkinson

@awilkinson

45

When looking at company software options, like for video chat, I'd love a browser plugin that would instantly tell me how a company I'm looking at was funded. I have no interest in signing up for a VC-backed option that's likely going to be shut down, sold, or IPO in X time.

DHH

DHH

@dhh

46

Venture: Roulette Private equity: Blackjack Bootstrapping: Poker

Andrew Wilkinson

Andrew Wilkinson

@awilkinson

47

VCism that I wish wasn’t true: OK founders in a great market usually succeed. Amazing founders in a bad market always fail.

Garry Tan

Garry Tan

@garrytan

48

So you can't have $$$ in VC; awesome, learn to bootstrap profitably. So you can't hire $$$ programmers; great, reduce unemployment at home.

DHH

DHH

@dhh

49

Way too many non-venture scale businesses raise venture and put themselves in a binary outcome: 1. Grow at all costs 2. Die trying You wouldn’t mortgage your house using credit cards. Why think of your business any differently? For most, it’s your entire net worth.

Andrew Wilkinson

Andrew Wilkinson

@awilkinson

50

One golden rule of consumer venture capital: follow the kids

Brian Norgard

Brian Norgard

@BrianNorgard