20VC: Why It Is Good Company Funding Has Been Down 6 Quarters In A Row, Why Unanimity Does Not Work In VC Decision-Making & Why It Is Dangerous To Be A Spreadsheet Investor with Scott Raney, Partner @ Redpoint Ventures
Scott Raney is a Partner @ Redpoint Ventures, one of the valley’s leading multi-stage funds with over 434 investments, close to $4bn in assets under management and 136 IPOs and M&A. At Redpoint Scott has made investments in the likes of Twilio, Stripe and Heroku, just to name a few. Prior to Redpoint, Scott was responsible for new products at NorthPoint Communications, and before that Scott worked at Bain & Company helping clients in the private equity and technology industries.
In Today’s Episode You Will Learn:
1.) How Scott made his first forays into the world of VC and came to be a Partner @ Redpoint Ventures?
2.) Why does Scott think it is a good thing that we have seen company funding down 6 quarters in a row? What does this mean for startups trying to raise?
3.) What 2 types of companies will continue to find it easy to raise in these markets? What types of companies will struggle to raise? Is there market cyclicality or a return to normal more sustainable times?
4.) Why are investors a lot less willing to take future fundraising risk? How does Scott view the optimal investment decision-making process for a VC partnership? Why does unanimity not work?
5.) Why does Scott believe it is dangerous to be a spreadsheet investor? With the bar being higher today, what are the milestones that startups need to reach in order to be attractive from an investment perspective?
Items Mentioned In Today’s Show:
Scott’s Fave Book: Born To Run By Bruce Springsteen
Scott’s Fave Blog: Tom Tunguz
Scott’s Most Recent Investment: Hashicorp
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