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Founder Investor Dynamics

2 clips

TThe Full Ratchet

personal lesson

VC missed 5-10x returns by not forcing entrepreneurs to take exit

A Mayfield partner shares the painful lesson of watching entrepreneurs refuse to sell during a bubble, missing what could have been venture capital history. Despite recognizing unsustainable valuations and advising an exit, the investor supported the founders' decision to keep building rather than take the off-ramp.

4:19 - 4:5334s
exit-strategybubble-valuationsfounder-investor-dynamics

TThe Full Ratchet

tactical advice

The hardest conversations VCs have to have with founders

A VC explains why the most difficult conversations they have with founders are about managing cash and hitting fundraising milestones. The key insight is reframing the investor-founder relationship as a partnership where both sides want to avoid running out of money and ensure the company is positioned for future funding rounds.

3:10 - 3:4636s
founder-investor-dynamicsfundraising-strategycash-management

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