It's cool that people are trying different things. If I was a VC, I would worry a bit about moral hazard. There are lots of entrepreneurs who try to fit their idea into a VC-fundable model not because they want to be a $1b business, but because they want/need investment.
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Signalling that you're the best VC for those folks would make me a bit nervous. (still very much a win in this specific case, because Buffer has a big megaphone)
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Why would that make you nervous? Because you are limiting your goal from the beginning ?
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Yup. (most) VC firms are modeled so that the entire fund's success is driven by finding a single unicorn/decacorn. That's really, really hard on the founder. Requires constant pushing to create new levers of growth. Much easier to get to $20m and coast.
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(and by "coast", I mean "still have a really challenging/complex job") By that definition, >99% of CEOs are coasting. Comparing oneself to Jeff Bezos is pretty tough :)
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If a company has built value but is clearly not on a unicorn path, it is misaligned with the interests of some classes of shareholders to keep raising capital recklessly in order to appease the interests /suit the strategy of another class. This is not called “coasting.”
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How much do you think "on a unicorn path" is an immutable property of the company, versus a thing that the founders can will into existence (w/ luck, experience, support, vision, grit, etc)?
End of conversation
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Not a great look that they put firing the founder-CEO on the table so early.
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most VCs would love this outcome. Normally the "meh return" company doesn't have cash to support the buyback and the investment says illiquid for years. These folks got back 9% annualized in 3-4 years, usually the firm gets back just their preference god-knows-when
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Imo this could be easily facilitated with some extra "unexpected ludacris best case" anti-fomo clause covering a potential later billion dollar exit
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