20VC Newsletter - Dec 17th, 2023
Top takeaways from 20VC episodes released this last week!
Sam Corcos at Levels is the best when it comes to leveraging an investor base:
🚀 1,500 requests to investors
❤️ Jeff Jordan best with 91% response rate
🔥 110 a16z partners helped
Monday’s episode with Sam Corcos, Co-founder & CEO at Levels
Download the full transcript here:
Top 8 lessons
1. Founders Should Take as Many Meetings with VCs:
They have way more exposure than you do as a founder. The feedback that you will get is so valuable.
They will often highlight competitors and incumbents with competitive products that you did not even know about.
2. You are a Profit, Not a Missionary When Fundraising:
You have the vision; you're trying to get people who are already bought in.
You are not trying to convert people to your religion. It is an uphill battle when they don't believe there's a market.
3. How to Ask Your Investors for Help:
In updates, we have an “Asks” section.
They need to be specific and highly targeted.
Bad: “Intros to designers”.
Good: “Intros to designers with 5+ years experience in PLG SaaS in SF.”
4. A16z is the Most Valuable Venture Platform:
Their services model has been incredible.
Our team has extracted value from 110 operating partners on their team.
No one has the breadth of talent and experience their team has.
5. Why Post IPO Operators are the Most Helpful Angels
They have more capacity to help.
They have a bigger and better network.
They have seen real operating scale.
Post-IPO angels are the best
6. Investor Value Add is Your Responsibility:
Do not blame investors for lack of engagement.
That is your responsibility as a company and founder.
We measure and track all outreach and requests for investor help.
Jeff Jordan (a16z) and Moshe Shrug have been the best.
7. Biggest Mistakes People Make in Dating:
They treat it like a sales process not a matching problem.
I created a one-pager with my values and what I look for in a partner.
I had many dates that did not last more than 10 minutes.
8. Two Lessons from Two Failed Companies:
If you cannot disagree and commit, then it is your time to leave.
The loudest person in the room is not always right. Just because they are strong opinions does not mean they are right.
LiveFlow is the hottest name in FP&A right now. LiveFlow integrates and customizes all of your financial reports from your accounting system directly into your spreadsheet. LiveFlow has a library of over 150 financial models that are completely plug-and-play, and they've also just released a brand new consolidation product that completely automates your consolidation in 3 minutes! Learn more here.
Steve Goldberg at Salesloft answers the big money questions:
Are CFOs open to buying new technology?
Why is revenue operations the most important role in a company?
Why should the CEO never be the one to actually close deals?
Wednesday’s episode with Steve Goldberg, Chief Revenue Officer at Salesloft:
Download the full transcript here:
Top 7 lessons
1. Has all Buying Power Gone To CFOs:
Yes. But they are still open for business.
It is a tough tough time to close deals, your problem has to be massive but if it is they will solve it outside of their budget cycle.
2. Sales People Are Not Ready for this Market:
A generation of salespeople are not ready for this new performance-driven market.
Expectation of teams is getting back to what it used to be.
Be prepared for some negative Glassdoor reviews. Many are not ready for this.
3. That Renewal is No Longer Guaranteed:
For years, renewals were expected and so was expansion on top of that.
Now every renewal is a new deal.
4. What Question is Every CFO Asking:
“What would happen if I were to take away this tool?”
If your customer does not have a clear answer when their CFO asks this and can back it up with data, then you are gone.
5. How to Prove Value to Customers:
No customer cares about adoption, they are about outcomes now.
You have to use data to show clear proof that usage of your product has made/saved them money.
It’s simple. The number has to be tied to revenue.
6. CEOs Should Never Be The One to Close:
CEOs should never be the ones closing deals.
That is the VPs job. CEOs should give the customer confidence on vision etc.
I'd never put my CEO in a position where he's actually having to close business.
7. Why Revenue Operations is so Valuable:
It is the most valuable role in the company.
It will drive your entire process and GTM. It moves from art to science, how you do what you do.
$5M: an analyst
$10M: 2 analysts
$20M: Management experience + analysts
Davis Smith From Selling $6M of Pool Tables to Scaling Cotopaxi to $150M in Revenues
Friday’s episode with Davis Smith, Chairman & Founder at Cotopaxi:
Download the full transcript here:
Top 8 lessons
1. What Founders Do Not Understand About Venture Capital
- How hard it is to raise. You will get rejected hundreds of times.
- How big your company has to be.
$15M in 5 years, no. You need to build a company with a $BN revenue in the future.
2. The Best VC Meeting Ever: Easy,
Kirsten Green with Forerunner.
We raised $3M on a $10M post money.
It was an idea and a PowerPoint but she believed.
3. Women Better Understand Purpose in Business:
Every single lead investor we have has been a woman.
1. Kirsten Green
2. Ellie Wheeler
3. Brooke Harley
4. Lauren Iverson
5. Cecilia Chao
Women understand purpose and mission in business.
4. We Need New Fund Models:
I went out to raise.
I had a profitable business with $150M in revenue.
I failed.
We need more long term investment vehicles which do not have compressed timelines to provide liquidity to investors.
5. Do Not Lay People Off, Take Paycuts:
“In our worst year, we didn't lay people off.
I told the team, I'm gonna take a big pay cut. The exec team is too. We're gonna ask the team to take 10% pay cut for 3 months.
Let's all experience a little pain to save everyone's jobs.”
6. Would Davis Go Public with Cotopaxi:
Going public right now is depressing.
The biggest mistake people make is they go public too early and get smashed.
At the right time, I would go public. I have changed my mind on that.
7. Entrepreneurs are Chasing the Wrong Thing:
Chasing wealth is wrong. It is an output.
We should chase inputs.
Purpose.
Service to others.
Empowering employees.
Improving the world.
Focus on the above and the wealth will come.
8. How To Select a Co-Founder:
Do not work with family.
Instead, identify an idea.
Seek out individuals who are trained to build that idea.
I did that with Cotopaxi and it is how we got our first designs so good and so fast.
Thank you for reading this week’s newsletter! You can find links to all our content across platforms here: https://linktr.ee/20vc