Conversation

SBF
@SBF_FTX
Replying to
@SBF_FTX
30) The Sixth VC is great for newer entrepreneurs. There are a lot of fuckups everyone makes (I certainly did!). Pointing those out is huge. And so is noticing when you’re about to make a large error in strategic direction and telling you.
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SBF
@SBF_FTX
31) On the other hand, the Third VC does this too, because Important Smart people have advice! Telling apart a Sixth VC from a Third VC can be hard, but it’s really important.
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SBF
@SBF_FTX
32) Anyway, as a recap: ask not what a VC can do for you, or what you can do for a VC. Ask whether it really is very positive sum.
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SBF
@SBF_FTX
33) And, in some sense, trust your gut. I’ve sometimes felt dread dealing with a VC. In retrospect, that was almost always a good sign to run away. And I’ve sometimes been really impressed, and felt great. Lean into that.
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SBF
@SBF_FTX
34) There are some Fifth VCs I’ve run into. Many of them are partners of SRM: projectserum.com. Some I wouldn’t have expected to be. But you can tell when someone really genuinely believes in you: their thoughts and arguments flow freely and powerfully.
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SBF
@SBF_FTX
35) There’s a parallel with community members. Those of you in the FTX community and chats can attest to how much impact Burg, and Dante, and Adebayo have had; way more impact than a random guy with 100k Twitter followers.
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SBF
@SBF_FTX
36) That’s the kind of partner you want: someone who sees what you see, and believes in you, and will fight for you. And yeah, it doesn’t hurt if they’ll also write you a big check.
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SBF
@SBF_FTX
37) Don’t fall for the classic VC pitch: we will grace you with our investment of $10, and you will give us 40% of your equity, because we are VCs, and you are a Company, and that is how we dance with each other. Find the partners you want.
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SBF
@SBF_FTX
38) And if you need funding, sure, raise from whoever! There’s nothing wrong with that, as long as you do actually need the funds, and are raising the amount you need.
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SBF
@SBF_FTX
39) So, TL;DR: 1) if you need funding, raise 2) if you don't like a VC, don't raise from them 3) if you really click with a VC, they migth fight for you, and that's awesome
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Kumar Gaurav
@kg_Cashaa
Replying to
@SBF_FTX
@SBF_Alameda
and 8 others
You are absolutely right, startup’s should avoid external funding until it’s critical for survival. I feel one of the reason we able to deliver our banking services for crypto/high risk business with profitable model because we did not have any external investor.
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