What do people think about Jet.com? Is it a multi-million dollar blunder or the next Amazon?
Jason M. Lemkin I think what Jet.com is, is what VCs call “Star Fracking”. Ok, they don’t say ‘fracking’, but you know what I mean. VCs in very large firms are looking for huge returns deploying huge amounts of capital. That’s a...
How and why did Theranos recruit such an unbelievable board?
Jason M. Lemkin I think Marc Bodnick probably nailed it. More generally, very charismatic CEOs doing something that sounds disruptive with social proof (e.g., famous angels) … can recruit really amazing people to the board if they really work at it. Mentoring...
How intrusive is too intrusive when it comes to contacting VCs, angels or accelerator partners?
Jason M. Lemkin Let me just add one small amplification to Garry Tan’s A+ answer (which I agree with 100%) just to be helpful. If a VC shows any real interest (and yes, the line between real and faux can be hard to see) … be persistent. Many VCs have 2...
I am fronting the startups fees for my cofounder. Will this be problematic with VCs and Angels down the road, or is it common?
Jason M. Lemkin No. I did this. I funded our beta myself. No one cared. Generally, VCs will be fine if it really matters if the company reimburses you for incorporation and other trivial costs from VC proceeds. If this number becomes much more than a few tens of...
How much easier is raising a series A with $30,000 monthly revenue compared to having $0 revenue?
Jason M. Lemkin Not necessarily easier, at least not at this moment in time. It should be much easier to raise at $30k MRR vs $0. But … At $0 … the potential is limitless. At $30k, it’s still early … but … the potential is measurable. If...
What skill sets are essential in becoming an Associate & or General Partner at a VC firm?
Jason M. Lemkin Ultimately, only one thing matters: Closing / making a couple of investments in the very, very best start-ups. But: Adding value does not matter. To the founders it does, but not to the VC firm. Not really. Sourcing candidates / VPs for portfolio...
What is Dropbox’s response to BlackRock lowering their valuation by 24%?
Jason M. Lemkin I wouldn’t even remotely care. Valuations go up and down once you IPO. They always do: It’s just in private companies, it’s very rare you can see it. Valuations aren’t marked up and down with any regularity, and even if they...
It’s Time For You To Make Security a Core Feature — Not a Tax
So many things have gotten better on the product side of SaaS in the past few years. Amazing tools, the evolution of AWS as “enterprise grade”, so many great things. One thing I am less impressed with though is the evolution of SaaS security —...
How is an investment decision made at a VC fund? Do all partners vote?
Jason M. Lemkin In most funds with > 2 partners, it’s turns out the partners don’t really vote. Not really. Most funds with >= 3 partners have traditional Monday partner meetings. Companies come in and pitch. Deals are socialized and discussed,...
Did investors who invested in Theranos do poor due diligence?
Q: Did investors who invested in Theranos do poor due diligence? No. Of course not. Having said that … doing diligence on truly disruptive changes in science is hard. My first start-up as a founder, NanoGram Devices, made implantable batteries from proprietary...
“Get In Early” (GIE) #004: Iron.io
Ok we’re gonna try to get on a roll here with Get In Early. As a reminder, Get In Early will profile hot up-and-coming SaaS start-ups you’ve almost heard of. That in 12 months you’ll definitely heard of. The criteria are: $1m < ARR < $10m...
Square’s S-1 shows that Starbucks transactions cost the company $77.1M, but Square only charged Starbucks $62.9M. How was this ever a good idea?
Q: Square’s S-1 shows that Starbucks transactions cost the company $77.1M, but Square only charged Starbucks $62.9M. How was this ever a good idea? Stepping back a bit, I think it’s important to not put excessive pressure on any one marketing initiative....
Can you tell me of any start-up companies in which the CEO was over 60 yrs old and became a multi-millionaire?
Q: Aside from Colonel Sanders who made his fortune at 73 can you tell me of any start-up companies that the CEO was over 60 yrs old and became a multi-millionaire? I don’t have a definitive list, but 2 that are interesting to me in The Internet: Neil Clark...
What are the most effective ways for early stage enterprise SaaS startups to sell to large organizations with little to no track record?
Q: What are the most effective ways for early stage enterprise SaaS startups to sell to large organizations with little to no track record? It’s hard. But … it’s not as hard as you’d think. Let me explain. Most forward-looking CIOs (of which...
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