Disrupting disruption with disruptive disruptions since 2010.
Simple Agreement for Future Equity—a Y Combinator innovation that lets startups take money now and figure out the valuation later. 'Simple' is debatable; some lawyers call them 'complex convertible debt without the debt.'
The danger that passing on an investment or accepting certain terms sends negative messages to future investors. In VC, optics matter as much as economics—sometimes you reject money because taking it would look desperate.
A corporate entity investing for business reasons beyond pure financial returns, bringing industry expertise and potential partnerships along with capital. Either your best ally or a Trojan horse gathering intelligence for a future competitive assault.
Selling existing shares to other investors rather than the company issuing new shares, allowing early shareholders to get liquid without diluting anyone. The financial equivalent of sneaking out the back door.
An investment strategy of making many small bets across a wide portfolio, hoping a few massive winners will compensate for numerous failures—essentially portfolio construction as gambling. The scatter-shot approach favored by funds who believe they can't predict winners.
Sequential institutional funding rounds designated by letters, theoretically indicating maturity but practically just measuring how much money you've convinced people to give you. The alphabet of ambition.
A system where VCs give small pools of capital to well-connected individuals to make investments on the firm's behalf. A brilliant way to outsource deal flow while paying in equity instead of salary.