James Taylor

Friday rant time. Investors don't take risks. Everyone wants Tier-1 background.  Nobody is out there for the little guy. Sharing a brief breakdown of VC economics (deep dive link in comments). VC is NOT charity, it's pure financial services. The NUMBER ONE metric we're measured by (for older funds) is DPI, fancy term for how much money you've given back. 1x, shut shop and go home. 2x, better, but still bad. 3x, now you have a reason to live. (for folks wondering how young funds are measured, it's typically MOIC + IRR, basically, how are companies you've invested in performing at present). Assume a ₹200 crore seed stage fund. Needs to give back ₹600 crore at least. Ignoring fees and expenses, you can invest ₹10 crore in 20 companies, for 10% each. Since it's quite clear (Fractal, Zomato, BlueStone, Nykaa) that it takes 12-14 years to IPO a startup in India, you can't wait that long (fund life is 10 years). So you have to exit to Series C/D investors who WILL want a discount. Assume 3 rounds of dilution, leaves you with ~5%, 20% discount, so 4% held. Seed has ~75% mortality rate, so 5 companies left. These 5 have to get you ₹600 crore. At 4% held: 1 company needs to raise at ₹15000 - Just NOT happening 2 companies raise at ₹7500 - Still VERY unlikely 3 companies raise at ₹5000 - Closer 4 companies raise at ₹3750 - Possible 5 companies raise at ₹3000 - More possible ^This is also the price Minimalist was acquired by HUL, which was an OUTLIER outcome and first of it's kind for consumer startups. The above should illustrate how hard the business is. Hence when funds insist on backing folks with successful exits, strong corporate careers, or absent both, just a great educational background, is maximizing luck. At Seed, there are two things that swing it for you. I call it Numbers & Story. If you have a GREAT story (I sold my last company for ₹500 crores), you can have ~no numbers. If you have a good story (I was VP Google India), once again, numbers are lower priority. If you're 22, from a small town college, breaking it down harshly, you NEED numbers. As an investor, we just DON'T ignore amazing growth. That being said, since this is a (very hard) financial business, we're looking at any and every indicator of possible success. Experience here helps in two ways: - Have already made dumb mistakes on OTHER peoples money - Have a network who will pick up the phone and help you/become first customer #venturecapital #startups #funding

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2009: The financial crisis had crushed fundraising. Barely any new capital went into venture funds. Yet the vintages from those years went on to deliver some of the strongest returns in history. Fast forward to today (2024/2025): Venture capital fundraising is at its lowest point in more than a decade. What does that mean? - ⁠Less money will be available to startups over the next years - The bar for raising capital goes up again: quality matters - ⁠Entry valuations will reset to saner levels --> Funds raised now are likely to outperform, just as history shows The paradox of venture: the best time to commit capital is exactly when most people hesitate. Investors (Limited Partners) should lean in now, not when the next boom makes it easy.

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Sequoia Capital’s Product-Market-Fit Framework... Sequoia Capital’s Arc accelerator team put together a framework for early-stage founders that outlines 3 ways to reach PMF: 1️⃣ Hair on Fire: You’re solving an obvious but important problem in, likely, a crowded market and do it better than anyone else (example: Zoom, during the pandemic) 2️⃣ Hard Fact: You challenge a conventionally accepted fact and demonstrate an alternative (example: Superhuman). 3️⃣ Future Vision: You skate to where the puck is going. Your customers don’t even realize how much they need your solution until they use it (for example: Tesla). The Arc accelerator team at Sequoia Capital has explained each of these three ways with a case study. This is a must-read guide for all founders... 👇 Recently, we shared a financial model template and a database of 35+ different investor contacts in our Venture Curator newsletter. Check it out, link is in the comments. . #startups #founders #venturecapital #vc #product #founder #investors #funding

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Every VC website says "value-add." Most have never operated and are selling help they can't actually deliver. After 100+ investments, here's what real value looks like (and how to spot the BS). Last week, a founder asked me: "What value do you actually add beyond the check?" Fair question. I've heard every VC claim they're "value-add." Most aren't. The Marketing BS: "Access to our network" = We'll send one intro email, maybe "Strategic guidance" = We'll give opinions on things we don't understand "Operational support" = We'll suggest you hire a recruiter "Brand value" = We have a nice logo for your website I've watched founders waste months chasing these empty promises. What Actually Matters: After backing 100+ companies, here's the only "value-add" that counts: 1. Speed of Decision The best VCs get back to you in 48 hours, not 4 weeks. Time killed waiting for answers is time not building. One of my founders needed emergency bridge funding. Decision in 3 hours. Money wired same day. That's value. 2. Useful Introductions (With Context) Not "Hey, you two should meet." But: "Sarah, meet John. He solved the exact payment processing problem you're facing at scale. He's expecting your call Tuesday at 2pm." Context. Relevance. Follow-through. 3. Pattern Recognition That Saves You Money "I've seen this movie 5 times. Here's what killed the others..." When I tell founders not to hire a VP of Sales before product-market fit, I'm saving them $400K and 6 months of pain. 4. Being There When Things Break Every VC loves you when you're up and to the right. Real value shows up during layoffs, failed product launches, and co-founder breakups. 3am calls. Emergency board meetings. Actual support when everything's on fire. 5. Getting Out of the Way The most underrated value-add: knowing when to stop giving advice. Your company. Your vision. Your execution. The best VCs amplify, not override. The Litmus Test: Ask any VC: "What specific help did you provide your last 3 portfolio companies?" If they talk about their "platform team" or "exclusive events," run. If they name specific introductions, saved costs, or crisis moments they helped navigate - that's real. The Truth: Most "value-add" is BS because most VCs have never operated. They're selling a product they don't understand. The real value isn't in the services they list on their website. It's in the scars they earned building and failing themselves. I tell every founder the same thing: Judge VCs by their actions in your worst moments, not their promises in pitch meetings. What's the most valuable thing an investor has ever done for you (beyond writing a check)? #VentureCapital #Startups #Fundraising #RealTalk #Founders

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As a VC, Hustle Fund Partner Eric Bahn handles 300+ emails / day while managing countless founder conversations, he's learned that the right tools can 10x your output. Here are the three that transformed how he works: 1. Voice Dictation (Willow) He barely types anymore. AI-enhanced voice input has doubled his productivity by: 🤺 Correcting grammar automatically ➖ Reducing redundancies 🗒️ Perfect formatting Voice is the future of human-computer interaction. Period. 2. AI Note-Taking (Granola) This desktop + mobile app automatically detects conversations and delivers: 💎 Flawless transcripts ✅ Action items extracted 🌏 Multi-language support (tested in Korea/Japan!) No more frantic note-taking in meetings. Just pure focus on the conversation. 3. Email Mastery (Superhuman) 359 weeks straight of inbox zero with 300+ daily emails. Here's why it works: ⚡ Speed: Every action under 100ms (vs Gmail's sluggish response) 💬 Snippets: Template 40 similar emails in under 5 minutes 🏆 Team templates: Crowdsource efficiency across your whole team Bottom line: The compound effect of small efficiency gains is massive. 💸

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