Jacob Grainger

Here's the thing we're all re-learning in 2024: To be VC-backed, you truly have to grow at insane rates At least, Triple Triple Double Double (3x 3x 2x 2x) Ideally, Triple Triple Triple Double Double If that's not you, don't raise. Or stop raising. Or at least, be realistic.

A lesson in dilution & entry prices: Below are 2 sample startups. They're made up, but loosely based on real examples & completely feasible. 1) Company A raises a seed at a $10M valuation, raises an A for 20% dilution, then never raises again, eventually exiting for $1B. Seed round MOIC = 80x (1B/10M * 80%) 2) Company B raises a hot seed at a $50M valuation, then 5 more rounds, totaling 80% dilution. It eventually exits for $10B, a decacorn! Seed round MOIC = 40x (10B/50M * 20%) In this case, a mere unicorn exit gives investors a 2x higher cash on cash return than a decacorn exit. Founders and early employees also make more $ from the former. Dilution matters. Entry price matters. Valuations alone can be misleading.

As a long-time Seed investor @Work_Bench, I’ve seen so many founders fundraise without realizing the long-term impacts on the terms they agree to There's no better time than YC demo day to shed some light on the various incentives & biases of different seed investors 🧵👇

Meissner effect or bust: Day 8.5 We made the rocks

Venture Capital is F*cking hard. With the risk free rate climbing and competition increasing it won't get any easier and a wash out is coming. Here's some of the real math required to generate industry leading returns in this highly illiquid asset class.

His panel, ‘Early-Stage Funds Fueling Canada’s Future’, will also feature @AllenLau of @twosmallfishvc, @IrfhanRawji of @relayventures and @JacobGGrainger of @PlugandPlayTC. If you’re at the Summit, check it out at 5 PM PST on the Main Stage! #BKRCapital #VentureCapital

@AndrewArruda @tfadell Good choice! It’s a great read

next read, “build: an unorthodox guide to making things worth making” by @tfadell

Will the next iteration of the gig economy be people executing tasks for #AI in the real world and relaying that back to #AutoGPT for payment?

A lot of panic re: SVB (you should see my phone/emails!). A bank run driven by panic is the real risk here, not the action of selling LT securities at loss I have no inside information as I left SVB in 2012, but know enough about banking to piece together. Quick 🧵

@AndrewArruda 😂

canadian startup founders

@AndrewArruda Can I introduce you to a Bay Area founder I know? I think his health startup fits your criteria and he’s a really nice guy

"i look for a company's “secret.” for example, when you think about apple, their secret was that they believed that everyone would eventually have a computer on their desk...i look for ideas that straddle the line between sounding like a bad idea & sounding like a good idea."

i chatted with @niftyhontas and shared my thoughts about angel investing and how it makes me a better founder and happier person "it's not enough just to have a great idea. being a good person is something that I think is oftentimes underrated." a few more excerpts below ⬇️

@chrissyfarr Keep citrus and fresh herbs around to finish a dish once it is cooked

Any food & cooking-related hacks to liven up evening meals? Looking for easy things to make with a toddler running around or to prep on weekends. Ordering in too much and looking to make a change! A few restrictions: ideally vegetarian or pescatarian & gluten free.

@HarryStebbings How do you, as someone investing on ~10 year time lines, keep your feedback loops short?

I have invested in 170 companies. The ones that win, have the fastest feedback loops. They try lots, they fail fast, they learn faster. The ones that lose, have long feedback loops. It takes months to know if something worked. The faster you fail, the quicker you learn.

@Jason @TahoeWeather JCal, come skiing in @BanffNP . Wet is rarely a problem. World class snow and I can introduce you to some investors and startups

Tahoe live report… 6,800 feet: snow is wet, but it’s getting colder and it is dumping… this could turn into a serious blizzard if we drop 3-4 degrees @TahoeWeather

@chrissyfarr Right?! A legacy system that will be disrupted

It continues to bug the crap out of me year after year that research from publicly-funded institutions is paywalled.

@HarryStebbings I bet @BillAckman asks himself this all the time

Canada’s immigration policy is a huge strength. 27% of the men on the @CanadaSoccerEN World Cup team weren’t born in Canada. As H1B visas expire due to tech industry layoffs Canada should capture that talent. Outside talent helps our country be world class. #FIFAWorldCup #layoffs

@daisydwolf @vijaypande Interesting read Daisy!

(1/7) @vijaypande and I have a 🔥hot take🔥 heading into #HLTH2022: the biggest company in the world will be a consumer health tech company. Read our personal opinions here (compliance made me say that 😉): a16z.com/2022/11/11/the…

There seem to be different measures of this: but an interesting sign that SF may be losing dominance for startup activity. cc @startupecon yared.com/2022/09/san-fr…

@dvasishtha We are deploying capital right now!

Which early stage healthcare funds are actually deploying capital right now vs. taking meetings / slow rolling things?