135. Dispelling Conventional Wisdom in VC, Part 1 | Does Capital Drive Outcomes? (Eric Paley)
Summary: <a href="http://apple.co/1RlJ4Qz" target="_blank" rel="noopener noreferrer"></a><a href="http://bit.ly/1SdFrwX" target="_blank" rel="noopener noreferrer"></a><br> Eric Paley of Founder Collective joins Nick to dispell some conventional wisdom in VC. We address questions including:<br> <br> * <a style="color: #000000;" href="http://fullratchet.net/wp-content/uploads/2017/05/FC_mg_8349b.jpg"></a>What’s the focus at Founder Collective?<br> * What are the downsides of heavily funded companies?<br> * Overview and Methodology for your study of 71 IPOs: ‘Overdosing on VC: Lessons from 71 IPOs’<br> * Conventional VC wisdom says more capital, better outcomes… Eric, what were the results of the study and does more capital lead to bigger exits?<br> * Do you think fundraising is a vanity metric?<br> * How do you address large overhead and burn rates when the growth objectives or growth vectors for the business change?<br> * Why did you base the multiples in the study on current, public market caps vs the market cap at IPO?<br> * Raising lots of capital and big exits… Is there causation, correlation, neither?<br> * What about acquisitions… does this study omit a significant number of positive outcomes to strategic acquirers?<br> * You also found that public performance, post-IPO, was quite different between efficient vs. heavily capitalized business. What were the results here?<br> * Was there any blowback or frustration from large investors at later stages?<br> <br> <br> Guest Links:<br> <br> * <a style="color: #0000ff;" href="https://twitter.com/epaley">Eric on Twitter</a><br> * <a style="color: #0000ff;" href="https://epaley.com/">Eric’s Blog</a><br> * <a style="color: #0000ff;" href="http://www.foundercollective.com/">Founder Collective</a><br> * <a style="color: #0000ff;" href="https://twitter.com/fcollective">FC on Twitter</a><br> * Eric’s article: <a style="color: #0000ff;" href="https://techcrunch.com/2016/10/15/overdosing-on-vc-lessons-from-71-ipos/">Overdosing on VC: Lessons from 71 IPOs</a><br> <br> <br>
