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This Week in Startups

E40: “Angel” Podcast: Jeff Richards, Managing Partner at GGV Capital shares lessons for founders & investors from 2008 recession & Dot-com bust, criteria for taking on venture debt, valuing companies in a down market & more

This Week in Startups

Jason Calacanis

Technology

4.41.3K Ratings

🗓️ 1 April 2020

⏱️ 73 minutes

🧾️ Download transcript

Summary

0:51 Jason gives some thoughts on quarantine & intros GGV's Jeff Richards
5:11 What will this crisis look like on the other side? Benefits of having a levelheaded approach
11:38 What has Jeff seen from his seasoned portfolio founders who went through the 2008 crisis?
16:21 What advice does Jeff give to first-time founders in his portfolio?
22:22 Investor panic & differences in opinion between independent & investor board members
25:50 What could inexperienced board advice be in a time like this?
30:45 What is GGV's typical check size, how many startups do they invest in per year, and how are their funds divvied up between early-stage & growth
33:26 Chances that current deals could be renegotiated? How can founders price themselves properly?
38:05 Jeff explains liquidation preferences
42:52 How should companies approach taking venture debt in a time like this? What is Jeff's criteria for taking venture debt?
51:11 If things are going poorly, what are some things founders can do to right the ship? Examples of great pivots that saved companies
57:58 What is Airbnb's roadmap from here on out?
1:02:12 Why Jeff doesn't get enamored with IPO valuations & why he is long tech
1:08:18 Thoughts on Zoom, anti-trust laws & more

Transcript

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your first job post. Hey everybody it it's Tuesday, March 31st, when we're taping this, you'll be hearing it a couple of days after that.

0:59.8

And we're in the middle of day 22 of my quarantine and it is the middle of the coronavirus panic and a I think hit peak fear last week or two weeks ago when we thought there would be millions

1:26.1

of people potentially dying in the US from this 100 million people could be infected and that

1:32.2

the death rate would be 5%.

1:34.4

And now, with social distancing,

1:38.0

we've got a couple of thousand people who've tragically died

1:41.2

and hundreds of thousands who have been confirmed with COVID-19, but it feels like the

1:52.0

end game is near testing is coming I am very optimistic about

1:57.2

the future and so we move forward and we're going to talk a little bit about what a post-Corona-Virus world looks like today.

2:06.0

And we're going to talk about how startups are going to get through the second order effects.

2:10.0

Anytime we do this, we have the risk of the gentle unique snowflakes in the world saying my

2:18.0

God is that callous to talk about business at a time like this?

2:20.9

Well for those snowflakes let me explain something to you. Business and jobs

...

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