We came right back on 20VC to do a deep dive on where seed investing is right now with Frank Rotman, one of the most successful fintech investors, Sam Lessin on Slow Ventures, with an incredible portfolio, and Jason Lemkin:

It’s a good listen. Per Harry:

“WTF is really happening at seed right now?

I just released this absolute banger of a discussion with Jason M. Lemkin, Sam Lessin and Frank Rotman on why seed is broken and what happens from here.

My Top 7 Lessons 👇

1. The Seed Model is Broken:

The idea that you can put a company and founder on a factory line and reliably produce billion-dollar companies is dead.

Allbirds, Lyft, Robinhood; they are not worth that much.

2. Where Has the Most Money Been Made:

When you have a thesis that is super weird, it is cheap as a result and it is not on the factory line.

Find weird s*** others do not believe in. Back up the truck.

Teamshares and Solana are both 1,000x.

3. Does Price Even Matter at Seed:

Absolutely, there is nothing worse than being right and not making money.

Sam Lessin: “I have even had an IPO where I ended up losing money.”

4. Do VCs Even Add Value at Seed:

Lemkin: All VC funds talent teams have failed.

Lessin: If founders need their VC to help close a candidate, they are not the best.

The best founders do not need you.

5. What Happens to YC in the New Seed Model:

Their position as the start of this factory line is over.

YC has immense value in being a good filter for drive and IQ.

Seed cannot play the YC game anymore as the rounds are too split up and you cannot get the ownership anymore.

6. What Happens From Here:

First, every VC is able to write off its 2021 fund.

Second, VC goes back to boutique; pattern recognition is important. Find cool s*** that others do not believe, make sure the risk is baked into the price and concentrate capital.”

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