Disrupting disruption with disruptive disruptions since 2010.
The extended period after initial startup excitement fades when growth stalls and reality sets in, but you're too committed to quit. It's the emotional valley between 'we're going to change the world' and 'maybe we should get real jobs.'
An introduction to an investor or customer through a mutual connection, vastly more effective than cold outreach. The difference between your email being read and being instantly deleted by an EA.
The percentage of a VC fund's investments that return zero, typically 50-70% despite everyone's confident pitches. The number partners don't mention at LP meetings unless forced.
A pejorative term for investors who swoop in during distressed situations to extract maximum value at founders' expense. The same people who call themselves 'value investors' on their websites.
The first fundraising round from people who love you enough to give you money despite zero evidence your idea will work. The most expensive way to ruin Thanksgiving dinner conversations.
The percentage of a company a VC aims to own to make an investment worthwhile relative to their fund size. It's why large funds often can't invest in your seed round—they need bigger slices.
The percentage discount early investors get when their notes convert to equity, rewarding them for investing before a priced round. It's the early bird special of startup investing, typically 15-25%.
The typical 10-year lifespan of a venture capital fund from raising money to returning capital to LPs, with investment happening in years 1-5 and exits in years 5-10. It's why your VC keeps asking about your exit timeline.
A provision that speeds up the vesting of unvested equity upon specific events like acquisition or termination. It's the golden parachute for startup employees who might otherwise get screwed by good news.
Someone who attends board meetings but lacks voting rights, typically a junior investor or potential future investor. They're flies on the wall with NDAs and calendars full of meetings they can't influence.
Raising capital by selling ownership stakes in the company rather than borrowing money. It's the fundamental bargain of venture capital: you get money now, investors get a piece of your future success (or failure).
The venture capital strategy of seeking only investments with potential to return the entire fund, requiring massive exits. A portfolio approach that ignores solid doubles and triples in favor of swinging for nonexistent fences.
A funding round at a lower valuation than the previous round, signaling either terrible execution or terrible timing. Triggers anti-dilution provisions and existential crises among founders.
A system where VCs give small pools of capital to well-connected individuals to make investments on the firm's behalf. A brilliant way to outsource deal flow while paying in equity instead of salary.
The percentage of a VC fund set aside for follow-on investments in existing portfolio companies. The math that determines whether your investor can actually support you in the next round or just awkwardly watch.
A VC who claims they'll actively help your company through connections, advice, and support, as opposed to just wiring money. Reality: they'll make three intros, attend two board meetings, then ghost you unless you're a unicorn.
A toxic funding structure where conversion price drops as stock price falls, creating a downward spiral that destroys equity value. The financial equivalent of quicksand—struggling only makes it worse.
Speeding up the vesting schedule of stock options, typically triggered by acquisition or termination. It's the consolation prize when your startup gets acquired and you're suddenly unemployed.
Veto rights that let preferred shareholders block certain major decisions like selling the company or raising more money. Democracy in theory, oligarchy in practice.
The art of building a valuable company while raising as little outside funding as possible, preserving founder ownership and bragging rights. It's increasingly rare in an era of mega-rounds and bloated valuations.
The time required for an investment fund to return its original capital to LPs through exits and distributions. It's the VC equivalent of asking 'when do I get my money back?'
The specific order in which investment proceeds are distributed among LPs and GPs based on the fund's legal agreements. It's the pecking order that determines who eats first at the exit feast.
The total value returned to investors divided by the total amount invested, ignoring time. It's the simple, honest metric that tells you whether you made or lost money, period.
A minimum funding round size (typically $1-2 million) that triggers the automatic conversion of SAFEs or convertible notes into equity. It's the threshold that separates real funding rounds from friends-and-family pocket change.