Sam Parr  ⚪️

1/ People often forget about venture incentives and how they skew advice: VCs have a huge incentive to want you to grow as aggressively as possible. To shoot for the moon vs. build a sustainable business.

2/ They *expect* your company to fail because most of the companies they invest in do, and in order to get a return they need a few whales. It’s like a roulette chip. They don’t win unless 5-10% of their companies 10-100x, while the rest fail or acqui-here.

3/ As a result, you have someone who owns maybe 10-20% of your company telling you that the best thing to do is do what serves them: insane growth. Even if you’re on the cusp of having an incredible lifelong, profitable business with a great culture.

4/ Think about it. If your company blows up: Venture Partner: One of 10-100 investments, to be expected. No big deal. To you: Your company dies, you lay everyone off, and you lose the majority of your net worth. A brutal, sad experience for you and your employees.