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Instant growth = huge valuation from follow-on investors = big VC mark-up on our quarterly reports = LP interest. It encourages a bit too much FOMO (fear of missing out) and over-valuation in companies and a desire to do huge financing rounds to be perceived as the “knock-out winner.” Grow or die.
In this period (less than 2 years) he has brought on incredibly talented senior execs is sales, marketing, product management, client services, finance, vp engineering and more. In his spare time he raised nearly $30 million. So naturally we’re pushing for him to drop critical information when their paths cross organically.
They often make great team members such as head of products, CTO, head of sales, CFO, etc. If your idea is so amazing that it warrants my hard-earned angel money or the money of my LP investors from our fund then why should I take a risk on you if you won’t take a risk on yourself? Why should I be? You have kids, a mortgage, MBA debt?
As a result, there is a much bigger supply of these people than there are of founders who can get a company to the point of hiring some early employees. Some finance guy said "12k a month minimum" and someone replied "I must be living in abject poverty" and its true. more) Sign up for free to read the full text.
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