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The Pros and Cons of Rando Rich People Investing in Your Startup

This is going to be BIG.

On the other hand, they could be the opposite—much more focused on near-term cash distributions than long-term equity appreciation. Paul and Rony focused on doing one thing and doing it better than anyone else—returning great job search results.

.Net 88
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Your Product Needs to be 10x Better than the Competition to Win. Here’s Why:

Both Sides of the Table

He invented the category of sponsored search. He created GoTo.com (later renamed Overture) out of a frustration with search. At the time when you did a search on Lycos, Alta Vista or similar for a category such as Cars you ended up getting 9 spam results and 1 proper website to meet your needs. Overture (Goto.com).

Product 350
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10 Reflections After 10 Years of NextView

View from Seed

at exit due to dilution. It creates dilution, and investing in these rounds increases your effective post-money. As my partner Lee always says, fundraising isn’t about convincing skeptics, it’s a search for true believers. If the company wasn’t that capital efficient, the fund may end up owning 2.5%

IRR 205
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10 Reflections After 10 Years of NextView

View from Seed

at exit due to dilution. It creates dilution, and investing in these rounds increases your effective post-money. As my partner Lee always says, fundraising isn’t about convincing skeptics, it’s a search for true believers. If the company wasn’t that capital efficient, the fund may end up owning 2.5%

IRR 156
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10 Reflections After 10 Years of NextView

View from Seed

at exit due to dilution. It creates dilution, and investing in these rounds increases your effective post-money. As my partner Lee always says, fundraising isn’t about convincing skeptics, it’s a search for true believers. If the company wasn’t that capital efficient, the fund may end up owning 2.5%

IRR 136
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Why Average VC Returns Don’t Really Matter

Agile VC

Startup outcomes are a power law distribution rather than a standard distribution. This impact of exceptional returns is diluted some at the fund level due to portfolio effect, so the distribution between the best and worst funds is far narrower than the distribution of startup outcomes.

LP 176
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Seed Stage Firms are Dead, Long Live Micro VCs

Genuine VC

But leveraged distribution via platforms (organic/paid search, social networks, mobile devices) and self-service monetization (ad networks, app stores, payments) is what has truly empowered startups to become real scalable businesses on very small amounts of initial capital.