Some gems from @MacConwell of @RarebreedVC in Clubhouse right now:

Saturday thoughts on funding: Where it helps. Where it doesn't. And how it affects team, success, and PM fit.

This is just my $0.02 after looking reviewing 30k+ early stage startups personally and having led 350+ investments across 2 VC firms & as an angel.

Let's begin! >>

1) Money is great to have in building a startup (for the least dilution and pain possible) That's true and always will be true. 😆

But just like how money can't buy you happiness, it also can't buy you PM fit.

2) PM fit is the holy grail for software startups. (we're not talking biotech - if you have a cure to cancer, I guarantee you everyone wants it).

But for software startups, it's unclear if ppl want your product at your price pt.

3) If you don't find PM fit, in this day and age, you will be able to get some sales. Maybe even say $1m in sales (or more!) per year, and you can still make a living.

But having sales does not mean that you have a repeatable customer acquisition process that can be sustainable

4) As an aside, that is why we invest at pre-seed & don't care about startup traction, because I don't believe traction at the earliest stages suggest PM fit. Traction only shows that a founder can execute (& that's impt too) but there are other ways to assess execution earlier.

Last week, I wrote a thread about generating momentum for startups.

Today's thread is on how emerging fund managers can generate momentum for their fund.

Whatever you do, momentum is so impt to get ppl onboard -- for hiring, for sales, for fundraising.

Read on >>

1) First, why does momentum matter?

Think about it from the "buyer's perspective" -- it is almost ALWAYS better to wait and get more information if you can get the same deal. Right?

More info on a potential investment. More info on a new product. Etc.

2) There are few situations where it's impt to be a first mover.

If you're a product buyer, it could be you have a dire situation at your company that alternatives can't handle.

But if you have a decent alternative (alternative product or alt investment), it's better to wait.

3) That means it's YOUR JOB to create momentum. Whether for fundraising, sales, or hiring.

So with that in mind, how do you generate momentum for fund fundraising?

4) In a prior tweet about generating momentum for startup fundraising, essentially I said to limit your supply (the amnt you are raising) in tranches AND to increase demand by packing in mtgs.

Unfort this doesn't quite work well for funds.

A thread on employee equity in early stage startups -- what are the compensation norms? What every early employee should ask? Some thoughts on whether the structure is fair.

Read on >>

1) First, there are NO NORMS! Hah. I have literally seen everything from giving early employees no equity to giving employee #1s near co-founder level of shares.

But what is more common than not?

2) In the Silicon Valley, if you're hiring your 1st employee, & you've raised NO $$ & are paying very little (e.g $0-$10k / yr or thereabouts), your first employee is basically a co-founder.

And the equity tranche for employee 1 should be closer to a co-founder level.

3) For ex, a friend of mine gave his employee #1 10% (vesting over 4 yrs of course) of the business. This employee was only getting his housing paid for. And this was 10 yrs ago, so it was during the bust.

4) On the flip side, if you have raised some $$ & are paying employee #1 near mkt rate, typically I see around here ppl get 1-5% (w/ vesting).

Caveat - near mkt rate doesn't mean compared to Google or FB salary rates. I mean compared to "normal big cos"

Today I want to talk about the legal aspects of startups. How to set up? How to think about legal costs?

Fun!

Read on >>

1) Lawyers are expensive -- oof! A startup lawyer can cost you $300-$1k per HOUR! An associate paralegal may be slightly cheaper. But still pricey.

What do you need from a lawyer?

-company setup costs
-doc creation and review for financing rounds
-exit negotiation

2) For the purpose of this thread, we're just going to focus on setup costs, because this is where I see the most mistakes.

Once you get going, you may quickly realize you need a better lawyer - hah - and that generally helps w/ solving for financing rounds and exits

3) If you want to potentially raise money from VCs, you'll want to set up as a Delaware C Corp. If you don't ever want to raise from VCs, an LLC is fine.

Lots of ppl start out as an LLC because you can get tax benefits if you are not profitable.

4) But to me, if you know you want to raise VC money, it feels a bit penny wise / pound foolish, because you will need to spend $$ to convert your LLC to a Delaware C corp.

Facebook is a newstand. But no one can see which news Facebook is pushing to the top.

So we built an app for that called #CitizenBrowser. Our first finding: the sharp impact of Facebook’s political ad ban reversal in the Georgia Senate elections.
https://t.co/GZNdwZOlHW /1

This is the first report from our #CitizenBrowser project. There will be many more to come. But first, I want to tell you a bit about how we did it because it’s the most ambitious thing we’ve ever done @themarkup – and we do a lot of ambitious projects. /2

#CitizenBrowser grew out of conversations @suryamattu and I had about how to audit Facebook. We had both worked on browser extensions to collect data from Facebook, but FB always threatened to shut those down, just like their recent threats against the NYU AdObservatory. /3

But the bigger problem is that browser extensions don’t capture most FB activity. Most people use FB on mobile and browser extensions only work on desktop or laptop computers.

So one night, late at the WeWork, @suryamattu said to me: “We’ll have to build our own browser.” /4

“No way,” I said. “That’s insane.” But slowly, I came around. Here’s why: browsers are good at running in the background. Users could log into FB once through the browser and never use it again.

Then we wouldn’t be monitoring users. We would only be monitoring their feed. /5

29 December 2020 #MAGAanalysis #Overturn

Comments On @OptimisticCon Article:

The key supporting effort appears to be underway on Trump’s operational timeline

As we emphasized yesterday, J.E. Dyer commands us: "But do hold the line."

If you're looking at GA EV data and thinking maybe the reason D turnout looks strong relative to 11/3 is because after 2 months of Trump/GOP officials trashing mail-in ballots GOP voters are ditching it for E-Day instead...

Boy do I have some mindblowing statistics for you...

I compared the current mail-in voting tallies for each Congressional District against November mail-in votes for those districts.

The statewide figure currently sits at 62%. Guess which district leads the state?

You guessed it!

GA-14 at 69%. Marjorie Taylor Greene's district.

#2 is GA-8 at 68%.

Jody Hice of "I'm joining Marjorie Taylor Greene in her effort to throw out the Electoral College vote" fame.

GA-9 (Doug Collins) is above the state average at 64%.

IF Republicans were ditching absentee balloting en masse to vote on Election Day, you'd expect to see it by now. But the early *in-person* voting totals are what's actually lagging, not mail-in voting.

Pardon the sloppy spreadsheet, but those last 4 columns are what I'm looking at. The last one in particular.

A thread on teaching live lessons using @MicrosoftTeams Meet Now function where students follow their normal timetable except online - will go into more detail on every point in a blog post later. Have used Teams for live teaching have supported over 100 live lessons since March

1. If you are using the desktop app, check you have the latest version of Teams so that you should have Breakout rooms enabled. Check by clicking your profile picture, then About - I have version 1.3.00.28779. If you have 1.2..., click on check for updates to get the latest

2. Set your entry routine. I get my students to enter with their microphone muted - you can also not allow attendees to unmute by opening the participants list, clicking the ellipsis and selecting that option.

3. Make sure students arrive as attendees - some organisations have this set up to automatically happen that only meeting organizer is the presenter and others are attendees. Can change this in the manage permissions menu to only me if not already set (opens in a web browser).

4. Classroom routine and expectations - first lesson I share my screen and show the students the raise hand function for when they want to ask questions, how to access the chat function and how to react to questions as opposed to typing answers