fundraising
- Ranges, not fixed valuations. When asked about valuation, provide ranges for both the funding amount and the dilution. Example for pre-seed: "I’m raising between $1.5 and $2 million, I expect that will probably be somewhere between 10% and 15% dilution."
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Verbal commitment. “What do you say, are we in?” Some investors may try to pressure you into verbally committing before you have seen the written terms. This makes sense on their end because it means you’re already partially bought in before you even document review. Instead of verbally committing, deflect with enthusiasm: "This is exciting!" Then,... See more
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Watch out for 45-day exclusivity clause. Sometimes some funds and accelerators will try to get you to sign an agreement giving them exclusivity for weeks or months before you even get to see the full term sheet/side letter. We’ve seen numerous cases of this, unfortunately, and the terms are also usually not great. Push back on agreeing to this with... See more
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Learning
I break down learning, like travel, into two categories:
Both can result in large consumer AI businesses. I’ve seen more companies crowd into the latter, but I think the former category is j... See more
I break down learning, like travel, into two categories:
- Curiosity-based learning (e.g., I want to learn about the Roman Empire)
- Functional learning (e.g., I need to memorize the periodic table before my exam)
Both can result in large consumer AI businesses. I’ve seen more companies crowd into the latter, but I think the former category is j... See more
The Opportunities in Consumer AI
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