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Avi Eyal

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2024-07-03
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2024-07-03
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  1. “So, I'm not sure that they're diluting so much. Because six on 12 is Is four on eight. The question is. It's an amount of capital, and I don't like that dilution. I don't like that valuation. I think that you can do more with less.”

    2024-07-03 · The Twenty Minute VC · 20VC: Turning a $15M Investment in Monday into $1.5BN in Cash | The Strategy Behind a 37x DPI $45M Fund | The Three Step Process to Selling Positions that has Netted Top Percentile Returns with Avi Eyal, Co-Founder @ Entrée Capital · IDENTIFIED FROM THE TRANSCRIPT · source

  2. “Don't like expensive deals. What can you do? I think that high price deals with a large amount of capital early in a startup's life closes opportunities for it. I think it creates a situation where you're not really running the business as lean as you could be. You're not making the decisions that you should be doing at the earliest stages. I think it leads to bad decision and I think it narrows the permutations of future fundraisings down the line. Having said that, in Israel, you know, there's a big challenge where the top deals are six to $12 million on anything from $15 to $30 or $40 pre. And I suppose that Entree has done at the bottom end of it. I mean, we've written some checks at $6 on $12, $6 on 15, things like that, but we generally don't write the bigger checks. We definitely don't.”

    2024-07-03 · The Twenty Minute VC · 20VC: Turning a $15M Investment in Monday into $1.5BN in Cash | The Strategy Behind a 37x DPI $45M Fund | The Three Step Process to Selling Positions that has Netted Top Percentile Returns with Avi Eyal, Co-Founder @ Entrée Capital · IDENTIFIED FROM THE TRANSCRIPT · source

  3. “I think the startup is challenged, of course. And that's part of the challenge with what's happened today within the what I call the institutionalization of VC where Andreasen Sequoia have become such big funds, the investment managers, you know, the multiple targets are different, the IRR targets have changed. It's almost like a BlackRock for startups. And so it's very easy for them to write that very early check because it's such a small fraction of their fund”

    2024-07-03 · The Twenty Minute VC · 20VC: Turning a $15M Investment in Monday into $1.5BN in Cash | The Strategy Behind a 37x DPI $45M Fund | The Three Step Process to Selling Positions that has Netted Top Percentile Returns with Avi Eyal, Co-Founder @ Entrée Capital · IDENTIFIED FROM THE TRANSCRIPT · source

  4. “I don't think it's entirely incorrect. Today, you want to generally get the next round done by a fund that can do the round after that. If you get a fund in to do the A, you want to know as a founder that the fund that's doing your A can do your B, can lead your B because you don't know where the world will be two, three years later. You want your investors to be able to continue and also continue when the trips are down, when things aren't great. And what we found is that many times we've led the seed and led the A in companies that weren't executing at the best time. But naturally what happens is that if you are doing extremely well, inherently you'll gravitate to tier one funds who want to lead and who write a bigger check and will carry on. And we kind of feel that playing together is better.”

    2024-07-03 · The Twenty Minute VC · 20VC: Turning a $15M Investment in Monday into $1.5BN in Cash | The Strategy Behind a 37x DPI $45M Fund | The Three Step Process to Selling Positions that has Netted Top Percentile Returns with Avi Eyal, Co-Founder @ Entrée Capital · IDENTIFIED FROM THE TRANSCRIPT · source

  5. “And then we saw a bit more conviction and we led the seed, and then we continued into the A and continued into the B and then eventually we sold the business. And we had the, I think we had the largest ownership in the company. 17, 18%. 250 million dollars.”

    2024-07-03 · The Twenty Minute VC · 20VC: Turning a $15M Investment in Monday into $1.5BN in Cash | The Strategy Behind a 37x DPI $45M Fund | The Three Step Process to Selling Positions that has Netted Top Percentile Returns with Avi Eyal, Co-Founder @ Entrée Capital · IDENTIFIED FROM THE TRANSCRIPT · source

  6. “You don't have to win every deal. You just have to win enough of the good deals. And under our formula, you have to participate in enough good deals. At times we don't win deals. We probably lose most of the deals that we want to do. I think we get our fair share many a time we don't have perfect conviction on a company. So we'll do an angel check as we see that the company proves the data points, the questions we had will be very early in trying to lead the next round or put in a safe or trying to up our ownership before the next round.”

    2024-07-03 · The Twenty Minute VC · 20VC: Turning a $15M Investment in Monday into $1.5BN in Cash | The Strategy Behind a 37x DPI $45M Fund | The Three Step Process to Selling Positions that has Netted Top Percentile Returns with Avi Eyal, Co-Founder @ Entrée Capital · IDENTIFIED FROM THE TRANSCRIPT · source

  7. “We do angel deals where we believe that the fund leading is a good fund and can drive the business forward. It's a fund that will listen to our opinions. The business obviously has to pass muster. We kind of view Angel deals as generally a deal we wouldn't have won. We couldn't have led.”

    2024-07-03 · The Twenty Minute VC · 20VC: Turning a $15M Investment in Monday into $1.5BN in Cash | The Strategy Behind a 37x DPI $45M Fund | The Three Step Process to Selling Positions that has Netted Top Percentile Returns with Avi Eyal, Co-Founder @ Entrée Capital · IDENTIFIED FROM THE TRANSCRIPT · source

  8. “Sony, the earlier funds, which were around the $800 million mark, we had 10 or so angel deals and $10 or so core deals. Again, like angel deals, you spend less time on because core deals, you're spending more time on, and you don't want too many deals because our model, the entree, has been we add value, we actually work the companies.”

    2024-07-03 · The Twenty Minute VC · 20VC: Turning a $15M Investment in Monday into $1.5BN in Cash | The Strategy Behind a 37x DPI $45M Fund | The Three Step Process to Selling Positions that has Netted Top Percentile Returns with Avi Eyal, Co-Founder @ Entrée Capital · IDENTIFIED FROM THE TRANSCRIPT · source

  9. “One doesn't need a large ownership in large outcomes when you have a small fund. That fund was an $80 million fund, and I think our proceeds from the sale was fifteen or twenty million dollars gain. It was a contributor to the fund, and I think that when you look at fund portfolio construction, you build your fund not by trying to have complete home runs on every deal, but we like to call it Angel and Core deals, where angel deals are deals where you could have a smaller check deployed or a smaller ownership, and you have optionality to increase it with prorata over time or to continue. But a bunch of these smaller deals can get you significant returns, which can bring you a one x return on your fund. And then the big ones, they headed out the ballpark ones, are the ones where you get The extra multiples.”

    2024-07-03 · The Twenty Minute VC · 20VC: Turning a $15M Investment in Monday into $1.5BN in Cash | The Strategy Behind a 37x DPI $45M Fund | The Three Step Process to Selling Positions that has Netted Top Percentile Returns with Avi Eyal, Co-Founder @ Entrée Capital · IDENTIFIED FROM THE TRANSCRIPT · source

  10. “I think I prefer folks who have an intimate knowledge of the industry that they're going to tackle. I think they have a greater chance of succeeding. Practically when I look at it, you take Roy Mannfromonday. com or you take Edo from Riskified, TJ Parker, who we backed at Pulpack, who as a teenager used to ride his bicycle delivering medicines, drugs from his dad's pharmacy, or Ron Corba, who is an environmental engineer who created Breezimeter, which we can talk more about. It's a company that struggled for six years until it suddenly didn't struggle and eventually was a big success.”

    2024-07-03 · The Twenty Minute VC · 20VC: Turning a $15M Investment in Monday into $1.5BN in Cash | The Strategy Behind a 37x DPI $45M Fund | The Three Step Process to Selling Positions that has Netted Top Percentile Returns with Avi Eyal, Co-Founder @ Entrée Capital · IDENTIFIED FROM THE TRANSCRIPT · source

  11. “Well, no, you certainly can't carry a company forever, but if you have conviction and you're a salesman and a company plans properly in terms of its finances, there are milestones along the way where you can take different decisions. And so you can conserve capital or you can spend capital more quickly. And I think the trick is with companies is to figure out where those milestones are and which forks you are in the way and in choosing the right fork. And then you need a fair amount of luck because there are a lot of investors out there. It's a challenge, but you can plan on how to approach which founders VCs at which time or which strategic investors at which time to get funding to hopefully succeed.”

    2024-07-03 · The Twenty Minute VC · 20VC: Turning a $15M Investment in Monday into $1.5BN in Cash | The Strategy Behind a 37x DPI $45M Fund | The Three Step Process to Selling Positions that has Netted Top Percentile Returns with Avi Eyal, Co-Founder @ Entrée Capital · IDENTIFIED FROM THE TRANSCRIPT · source

  12. “I think one needs to understand that you're not building for today. I think you're building for a much longer period of time.”

    2024-07-03 · The Twenty Minute VC · 20VC: Turning a $15M Investment in Monday into $1.5BN in Cash | The Strategy Behind a 37x DPI $45M Fund | The Three Step Process to Selling Positions that has Netted Top Percentile Returns with Avi Eyal, Co-Founder @ Entrée Capital · IDENTIFIED FROM THE TRANSCRIPT · source

  13. “I think you need to have some sort of method, and then that method becomes tried and tested. At Entree, we have something called the Fortis, which is technology and team multiplied by timing to the power of the team. You need those elements in place.”

    2024-07-03 · The Twenty Minute VC · 20VC: Turning a $15M Investment in Monday into $1.5BN in Cash | The Strategy Behind a 37x DPI $45M Fund | The Three Step Process to Selling Positions that has Netted Top Percentile Returns with Avi Eyal, Co-Founder @ Entrée Capital · IDENTIFIED FROM THE TRANSCRIPT · source

  14. “No, no, just the fact that I had scuba diving skills because I was in a hut underwater and I managed to get out and save a couple of people in the process as well.”

    2024-07-03 · The Twenty Minute VC · 20VC: Turning a $15M Investment in Monday into $1.5BN in Cash | The Strategy Behind a 37x DPI $45M Fund | The Three Step Process to Selling Positions that has Netted Top Percentile Returns with Avi Eyal, Co-Founder @ Entrée Capital · IDENTIFIED FROM THE TRANSCRIPT · source

  15. “I would say not business wise. You're wanting a business answer. I'm not going to give you one. I would say it's lack of having my dive master scuba diving skills because that led me to surviving. That led me to living because I survived the tsunami in 2004 on Kop where two-thirds of the island, 2,000 people died that day. And I had amazing luck to be able to save myself, save a couple of people. We were drowning and”

    2024-07-03 · The Twenty Minute VC · 20VC: Turning a $15M Investment in Monday into $1.5BN in Cash | The Strategy Behind a 37x DPI $45M Fund | The Three Step Process to Selling Positions that has Netted Top Percentile Returns with Avi Eyal, Co-Founder @ Entrée Capital · IDENTIFIED FROM THE TRANSCRIPT · source

  16. “So I can't lie. I have some skill. I was a serial entrepreneur. I started a bunch of businesses, but nothing came easy. When my friends at school were surfing and going to the beach on holidays, I was working part time jobs, and so I strongly believe that the harder you work, the luckier you get. I would say it's twenty, thirty percent luck.”

    2024-07-03 · The Twenty Minute VC · 20VC: Turning a $15M Investment in Monday into $1.5BN in Cash | The Strategy Behind a 37x DPI $45M Fund | The Three Step Process to Selling Positions that has Netted Top Percentile Returns with Avi Eyal, Co-Founder @ Entrée Capital · IDENTIFIED FROM THE TRANSCRIPT · source

  17. “I didn't have an extremely challenging childhood, but I was born in Israel at a tough time. I grew up in a lower middle class family with a father who was mostly away in the military. And at the age of five and a half, I was whisked away by my family, my parents, my to South Africa, and pretty much dumped in a school, left to figure out a new language, figure out new friends, things like that, and integrate into a new environment. So it caused me to become very independent at a young age, and I had to figure out what needed to get done. So I worked hard, and I try to get results, and I think that shaped me.”

    2024-07-03 · The Twenty Minute VC · 20VC: Turning a $15M Investment in Monday into $1.5BN in Cash | The Strategy Behind a 37x DPI $45M Fund | The Three Step Process to Selling Positions that has Netted Top Percentile Returns with Avi Eyal, Co-Founder @ Entrée Capital · IDENTIFIED FROM THE TRANSCRIPT · source

  18. “Since the beginning of Monday, we invested approximately $15 million. The distribution from that was over one and a half billion dollars. I'll tell you that the next ten investments that were successful didn't equate to the gain on Monday. You don't have to win every deal. You just have to win enough of the good deals”

    2024-07-03 · The Twenty Minute VC · 20VC: Turning a $15M Investment in Monday into $1.5BN in Cash | The Strategy Behind a 37x DPI $45M Fund | The Three Step Process to Selling Positions that has Netted Top Percentile Returns with Avi Eyal, Co-Founder @ Entrée Capital · IDENTIFIED FROM THE TRANSCRIPT · source