20VC: Venture Capital Is One Hell Of A Drug, What VCs Expect From Founders Once They Have Raised & Why Customers Validate Your Business Not Venture Capital with Eric Paley, Managing Partner @ Founder Collective
The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
The Twenty Minute VC
4.4 • 637 Ratings
🗓️ 23 November 2016
⏱️ 24 minutes
🧾️ Download transcript
Summary
Eric Paley is the Managing Partner at Founder Collective, one of the world’s most successful seed funds with investments in the likes of Uber, Hunch, Makerbot and About.me. Prior to Founder Collective, Eric was the Co-Founder and CEO of Brontes Technologies, later acquired by 3M for $95m. Following it’s acquisition Eric began making angel investments and it was not long before Eric and David, ‘super angel’ at the time, saw the potential for a Founder First seed fund and Founder Collective was born.
In Today’s Episode You Will Learn:
1.) How Eric made his move into the wonderful world of venture from founding Brontes Technologies?
2.) How does raising VC money affect the founders in both the long term and the short term? How does it alter exit expectations and time horizons?
3.) How does raising VC money affect startup management and burn rates? At what time is it too late to cut the burn? When should this moment of realisation be?
What are Eric's rough expectations of valuation uptick based upon VC funding? How does Eric approach the bridge round? What metrics are required for Eric to think it is an acceptable round? Is it merely a case of failing to hit Series A metrics?
5.) Does Eric believe VCs really need $Bn exits to succeed? What is the math behind it? How should founders think of exits with the investors hat on? What does Eric make of the rise of mega funds?
Items Mentioned In Today’s Show:
Eric’s Most Recent Investment: Crayon
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Transcript
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| 0:00.0 | Welcome back to the 20-minute VC with your host Harry Stebbings at H. Debings on Snapchat, |
| 0:04.8 | and you can find my written thoughts on our new blog on all things, ventures, startups, and the |
| 0:09.7 | review of guests on the show, and you can find that on the incredibly named MichitoVC.com. |
| 0:14.6 | It is a cross between Fred Wilson and Freakonomies, and I'd really love to hear your thoughts on that. |
| 0:19.5 | However, to the show stay, and similar to Monday, we have a guest that I so enjoyed the first time that I was simply |
| 0:24.3 | desperate to have back on the show, and so I'm delighted to be rejoined by Eric Paley. Now, Eric |
| 0:28.8 | is the managing partner at Founder Collective, one of the world's most successful seed funds, |
| 0:33.1 | with investments in the likes of Uber, Pilpack, MakerBot and BuzzFeed. And prior to Founder Collective, |
| 0:39.1 | Eric was the co-founder and CEO of Bronte's technology, later acquired by 3M for $95 million. |
| 0:44.6 | And following its acquisition, Eric began making angel investments, and it was not long before |
| 0:48.7 | Eric and his partner David Frankel, Super Angel at the time, saw the potential for a founder |
| 0:53.6 | first seed fund and the idea for founder collective was born. |
| 0:57.0 | But before we welcome Eric back on the show, the 20-minute VC is proudly sponsored by Luma. |
| 1:01.6 | Now, Luma is the world's first ever surround Wi-Fi system that brings speed, security and control to your home network. |
| 1:08.1 | And unlike traditional routers, Luma comes in a pack of two or three |
| 1:11.6 | sleek devices to place in different rooms around your home. Luma then creates a mesh network |
| 1:16.7 | that worked together to create an outrageously fast, ultra-secure surround Wi-Fi network. Lastly, |
| 1:21.9 | Luma's app lets you easily see and control which devices, users and content are on your network. To buy your Luma, |
| 1:28.5 | simply head over to getluma.com or Amazon.com or Best Buy.com or you can even buy them in |
| 1:33.7 | Best Buy stores. And when your Wi-Fi doesn't work properly, it can be a real headache. And so |
| 1:37.8 | many problems start with your head. Stress, depression, anxiety, fear of the future. What if there |
| 1:43.1 | was some kind of exercise you could do that |
... |
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