"What's the preference stack?" Silence. Here's what that 1% actually means: - Investors put in $10M - They get paid back 2x first - Then they get their pro-rata - Then you get... what's left The real math: $20M exit = $0 for you $30M exit = $0 for you $40M exit = maybe lunch money But it gets worse: Your 1% isn't even 1%: - Series A cuts it to 0.5%... See more

The Venture Arrogance Score: A simple formula to evaluate a VC firm's business modelWhat percent of "total annual startup value creation" does that fund need to capture in order to generate their desired return.You just need five numbers to calculate it...1) Fund Size and Investment Window (this is simple...just take the size of their last fund --... See more

Honestly, I’m surprised it took two GPs at a16z to write this total slop. Sarah calls margin critiques ‘boring cliches’… only to publish Uber/DTC loss-leader parables that we've all heard for over a decade. That debate was done to death fifteen years ago. Missing the point entirely. This... See more