Some recent reads that I’ve enjoyed
“The biggest understanding gap I see between founders and VCs today is this understanding of the relationship between the investor focus on terminal outcome and the founder focus on the microeconomics and unit economics….. The net result is a lot of of frustrated founders who don’t understand why they can’t raise with $1-2 million in ARR and investors who don’t understand why founders don’t realize they are in small markets, regardless of early traction.”
As Charles also notes, this is exacerbated by the rapid increase in venture fund size. Every dollar increase effectively needs another several dollars of startup exit value to justify the AUM growth.
“The expectations of most investors are very simple. Your investors want:
A credible plan for the business that you, as a leader, believe strongly in.
That’s it. That’s what they want. It sounds simple, but let’s break it apart to see what it takes to give that to them.”