20VC Newsletter - 24th November 2024
Here are the transcripts and top takeaways from 20VC episodes released this last week.
Monday’s episode with Alain de Botton, Author of Essays in Love:
Download the full transcript:
My 7 key takeaways:
The Single Biggest Mistake Young People Make Today
They do not have a plan.
Most people entering the work force today only have a vague sense of what they really want.
If you don’t have a plan, you’ll fall prey to the plans of others.
Why We Are Richer and More Anxious Than Ever Before
The defining mood of hyper modernity is anxiety.
We no longer believe we live in cyclical time.
We are simultaneously excited and worried about the future.
Why Companies Are Not Families
Companies that talk about being a family are tying themselves in a knot.
They are borrowing the language of private life in order to foster a short term sense of togetherness.
They are an association of people coming together to make profit.
Why You Should Not Be Your Full Self and That Is Good
Your full self contains a bunch of negative parts that aren’t ideal to share with others.
You shouldn’t bring your full self anywhere, even in a relationship.
Your partner should see who you want to be & focus on that.
Why Parents Do Not Want Their Children to Succeed
Envy is a key motivator & people can be envious of their children.
Some parents feel threatened by their children’s achievements.
If they are not settled within themselves, they won’t allow their children to surpass them.
The Sign of Good Parenting Is When Your Child Does Not Wish to Be Famous
It means they have an internal system of validation rather than an external one.
They are not seeking recognition from strangers.
They are content to be known by a small circle of people they actually know.
Why You Have to Let Children Fail on Their Own
If you tell your child the answer, it won’t be worth that much.
If they find their way to the answer on their own, the lesson will really stick.
The agony of parenthood is that you simply cannot rush the process.
Wednesday’s episode with Cem Sertoglu, Managing Partner @ Bek Ventures:
Download the full transcript:
My 7 key takeaways:
How Much of a 20x Fund Is UiPath?
Our Fund I returned 20x.
85% of the proceeds have been from UiPath.
Without it it is still 2.7x.
Loss Ratio: We Made Money on 12 Out of 15 Investments
From 15 investments, only 3 did not return capital.
Six are still live but we expect to make money from all of them.
Some of those investments are too low risk - it cost us too higher risk & higher return opportunities.
Biggest Reason Companies Do Not Scale From 0-1?
We are an industry that fetishizes growth, founders hire too many too fast after getting funding.
Their go-to-market script does not fit the company & they do not adapt it fast enough.
This is when the sideways trailing starts to happen.
Why Price Does Not Matter
We analyzed our biggest outcomes & calculated what the returns would be if we paid double on the first check.
The results did not matter as much.
If we paid double for UiPath’s seed it would have still been a fantastic outcome.
This Billionaire VC Will Not Do a Deal if He Feels Rushed
If we do not have enough time to understand the business & the opportunity we will pass on it.
We passed on multiple categories in 2021 when the market was in a frenzy.
It did not feel good but we will not get rushed into decisions.
Why You Should Manufacture Arguments With Founders Pre Deal Being Signed
We try to disagree with the founders at least once in the term sheet process to see what the dynamic is like.
A lot of early negotiations have too much tension between the founder & VC.
If there’s a lack of trust it becomes a really negative environment to operate in.
Why It Is Good to Be Quiet on the Board
There is enormous pressure from VCs to demonstrate value add.
In truth every company has their own unique story & trajectory.
We are very careful in choosing when we share strong opinions.
Friday’s episode with Dan Fougere, former Chief Revenue Officer @ Datadog:
Download the full transcript:
My 5 key takeaways:
How to Do Outbound Super Well in 2024?
You have to differentiate yourself by the way you show up.
Do research on the prospect, come in with value.
You have to be someone who’s helping them instead of someone trying to make money.
How This Sales Leader Inspired a Sales Machine**
My mission statement to everyone on day one:
We will be a legendary sales team
You will make life-changing money & learn so much more than by working in any other
You will never have to look for a job again because the halo of our success will be over your head for the rest of your career.
Why You Want as Tight a Control Around Discounting as Possible
Without proper leadership, salespeople will maximize discounts 100% of the time.
That is not how we drive maximum valuation.
We limit discounts at the CRO/CPO level and only use them when we’re close to losing deals.
When It Is Right to Leave
When you’re in the honeymoon phase & they’re telling you things that are not true.
You need to get out fast.
Things will only get worse from there.
Biggest Advice to New Sales Leader Today
Think about all the wins you’re going to put on the board.
Game-changing hires, deals, efficiency, etc.
Share that with your CEO, agree on something realistic, and make it happen.
Let us know what your big takeaways from this week’s shows were in the comments below!
Thank you for reading, and don’t miss the great guests we have next week:
Jason Citron, Founder & CEO @ Discord.
Klaus Hommels, Founder & Managing Partner @ Lakestar.
Guy Podjarney, Founder & Board Member @ Snyk
Thank you for reading 20VC.
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