YouSaid · the spoken record

David Frankel

lines on the record: 105
first: 2024-10-14
most recent: 2024-10-14
sittings or episodes: 1
sources: podcast

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“I would We did no reserves in fund one, zero. And then what we found was there was this negative correlation bias. There were these companies that just were not getting there fast enough, that needed our help, and we had to break the rules. One of the best instances of breaking the rules, Eric, who is the most disciplined investor in our team by far, he's created literally the infrastructure on which we all rise. Eric looks at me on TrayDesk and goes, they're out of money if we don't invest here. They're out of money. Eric breaks his own rules so painfully, so for him ahead of me. I'm more opportunistic. I go like, if we got to do it, we got to do it.”
2024-10-14 · The Twenty Minute VC · 20VC: Investing Lessons from FC Seeding Uber, Airtable and Coupang | Why Pro Rata is the Original Sin in VC | Why Liquidity Has Died in 2024 | Why LPs are Pissed with VCs | The Hard Truth About Seed Fund Economics with David Frankel @ Founder Collective · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, the more optimistic remark there is like you jump out of a plane with a box of silkworms and hope they're overachievers.”
2024-10-14 · The Twenty Minute VC · 20VC: Investing Lessons from FC Seeding Uber, Airtable and Coupang | Why Pro Rata is the Original Sin in VC | Why Liquidity Has Died in 2024 | Why LPs are Pissed with VCs | The Hard Truth About Seed Fund Economics with David Frankel @ Founder Collective · IDENTIFIED FROM THE TRANSCRIPT · source
“So I'll give you the corollary of that have there have been companies that have been very down on. And often it's in enterprise SaaS, where just the sales cycle is so long and you go like, are they ever going to get there? But I remember saying to my wife on Olo, this is done. We've lost. This is pre-founder collective saying we have lost our money. Like Noah is never going to get there. Each time this guy gets a little bit of funding, I feel like he's just pulled the rabbit out of the hat. I feel like he's duped the investor. The corollary to that is some of these businesses take a long, long time. And so consumer, I think you get feedback pretty quickly. By the way, Harry, there have been times where I've seen where I've said, how good is that entrepreneur? And I've started to say they're not the smartest. They're not the fastest. The velocity of getting stuff done here is very slow. And then something lucky happens. And particularly in a consumer business, you get this fast feedback. And you then you think they're geniuses. But this is a long, long, long.”
2024-10-14 · The Twenty Minute VC · 20VC: Investing Lessons from FC Seeding Uber, Airtable and Coupang | Why Pro Rata is the Original Sin in VC | Why Liquidity Has Died in 2024 | Why LPs are Pissed with VCs | The Hard Truth About Seed Fund Economics with David Frankel @ Founder Collective · IDENTIFIED FROM THE TRANSCRIPT · source
“You know, there have been times where we didn't break the rules for the best of reasons. The first thing that comes to mind is like Pinterest, the founders came to us and we had a conflict. We had a very strong associate in Zach Klein, who was the chairman of Supply. We'd invested in supply. We couldn't make the investment. I look back at them and I go like, how, you know, if you look at that outcome, you go like, how could we have, but we didn't break the rules? And I think there's like financial rules. And then I think there are rules of loyalty and partnership where you go, that's my name on the door. And I cannot break. Those are just unbreakable rules.”
2024-10-14 · The Twenty Minute VC · 20VC: Investing Lessons from FC Seeding Uber, Airtable and Coupang | Why Pro Rata is the Original Sin in VC | Why Liquidity Has Died in 2024 | Why LPs are Pissed with VCs | The Hard Truth About Seed Fund Economics with David Frankel @ Founder Collective · IDENTIFIED FROM THE TRANSCRIPT · source
“I think some founders still see a name in lights and they go, I want that name beyond anything. If it's Sequoia A16Z Axel, you name it, I want that name. And I think there will always be a steady supply of founders who think that way. I don't think they understand that you're going to, the one in 10, if you're lucky, and those stats are probably not even right, one in 10 get funded. Otherwise, you're orphaned or you're in a world of hurt because someone that the world thought was very, very serious and very smart about you just said no to you. Go try sell against that. I think it's very, very difficult. To our earlier point, those founders come back to us. And they say, like, I was orphaned. They don't understand that 90% don't get follow-on funding.”
2024-10-14 · The Twenty Minute VC · 20VC: Investing Lessons from FC Seeding Uber, Airtable and Coupang | Why Pro Rata is the Original Sin in VC | Why Liquidity Has Died in 2024 | Why LPs are Pissed with VCs | The Hard Truth About Seed Fund Economics with David Frankel @ Founder Collective · IDENTIFIED FROM THE TRANSCRIPT · source