this is the weakest thing i've read from you (and i think i've read most of what you've written on the internet... as far as i can tell).
i would usually spend time calling things out but there are too many spots; at a high-level, your basic premise is that founders should have a "strong" cap table. this is obvious as it is self-evident. but, i imagined you would then provide a strong argument as to why... and this is the only thing i could find that answers that simple but fundamental question:
> These investors can connect you to other investors for later rounds and set you up for a longer term future.
... but i had to reach to find the connection... cause every investor does this... you've provided very little in addition to what investors already executes against. my assumption is that you're argument is that a MORE diverse cap table will create more diverse connections for the founder... and although that might be true, real "diversity" in reality is a luxury that few founders really have... most will take money b/c they just need to survive and diversity isn't something you give a shit when you're dying.
is there a part where she says not to take money because you're dying? The argument seems fairly clear: diverse investors can help your business but most founders aren't intentional about how to get them on the cap table. Then she provides some tips and insight for how to do that.
no, but, you're missing the very real, visceral point: if you're dying, you're going to take money because that's all that matters and it is unlikely that you're going to care if they are black or a woman or a _fill_in_the_blank_ when there are 1,000 white males who will give you some.
i'm not against diversity; i want more of it! but, i'm speaking to the reality of being a founder — this shit is hard and just telling founders to ALSO be "more diverse" without real, helpful takes is a waste of our time... and we don't have much time to begin with!
of COURSE i want a more diverse board and investor team. of COURSE i want to have a kick-ass "at bat rate" for a diverse staff. of COURSE i want to have the "right" statistical metrics blah blah blah.
but when you're staring down 3 months of runway and mouths to feed... shit gets real... real fast and you're priorities shift.
i'm fortunate because i've fucked up enough (i.e. failed ventures... ouchie) to try to plan ahead and i have the luxury of having a bit more experience too which gives me more margin and time for hiring and saying "yes" to more diverse folks... for instance, not many folks could say that their head of engineering in their vc-backed startup is... a woman / mom with young kiddos.
yes, i'm super-fucking proud of that but i also know that that's SUPER rare... and i count my blessings for it.
I hear you. And appreciate your point. Founders may need money, from anyone, more than they need anything else. And money can be hard to get so you take what you can.
BUT. what's the solution for a founder who DOES want a more diverse set of investors and can afford to spend the time? and I question how much time it actually takes. Every founder who's strategic about their round likely keeps a spreadsheet of leads and tries to fill the rows with as many as they can. Why not use some of Holly's tactics during the initial stages of the hunt? Why not leave a small piece of your round open for smaller checks from black investors, asian investors, and women if you happen to be fortunate (and good) enough to have a round that's on the verge of closing?
It's fine to say you need the money wherever it comes from because you need to save your company. You can't afford to die. But you can afford to think about how to get money from more people.
this is the weakest thing i've read from you (and i think i've read most of what you've written on the internet... as far as i can tell).
i would usually spend time calling things out but there are too many spots; at a high-level, your basic premise is that founders should have a "strong" cap table. this is obvious as it is self-evident. but, i imagined you would then provide a strong argument as to why... and this is the only thing i could find that answers that simple but fundamental question:
> These investors can connect you to other investors for later rounds and set you up for a longer term future.
... but i had to reach to find the connection... cause every investor does this... you've provided very little in addition to what investors already executes against. my assumption is that you're argument is that a MORE diverse cap table will create more diverse connections for the founder... and although that might be true, real "diversity" in reality is a luxury that few founders really have... most will take money b/c they just need to survive and diversity isn't something you give a shit when you're dying.
is there a part where she says not to take money because you're dying? The argument seems fairly clear: diverse investors can help your business but most founders aren't intentional about how to get them on the cap table. Then she provides some tips and insight for how to do that.
no, but, you're missing the very real, visceral point: if you're dying, you're going to take money because that's all that matters and it is unlikely that you're going to care if they are black or a woman or a _fill_in_the_blank_ when there are 1,000 white males who will give you some.
i'm not against diversity; i want more of it! but, i'm speaking to the reality of being a founder — this shit is hard and just telling founders to ALSO be "more diverse" without real, helpful takes is a waste of our time... and we don't have much time to begin with!
of COURSE i want a more diverse board and investor team. of COURSE i want to have a kick-ass "at bat rate" for a diverse staff. of COURSE i want to have the "right" statistical metrics blah blah blah.
but when you're staring down 3 months of runway and mouths to feed... shit gets real... real fast and you're priorities shift.
i'm fortunate because i've fucked up enough (i.e. failed ventures... ouchie) to try to plan ahead and i have the luxury of having a bit more experience too which gives me more margin and time for hiring and saying "yes" to more diverse folks... for instance, not many folks could say that their head of engineering in their vc-backed startup is... a woman / mom with young kiddos.
yes, i'm super-fucking proud of that but i also know that that's SUPER rare... and i count my blessings for it.
I hear you. And appreciate your point. Founders may need money, from anyone, more than they need anything else. And money can be hard to get so you take what you can.
BUT. what's the solution for a founder who DOES want a more diverse set of investors and can afford to spend the time? and I question how much time it actually takes. Every founder who's strategic about their round likely keeps a spreadsheet of leads and tries to fill the rows with as many as they can. Why not use some of Holly's tactics during the initial stages of the hunt? Why not leave a small piece of your round open for smaller checks from black investors, asian investors, and women if you happen to be fortunate (and good) enough to have a round that's on the verge of closing?
It's fine to say you need the money wherever it comes from because you need to save your company. You can't afford to die. But you can afford to think about how to get money from more people.
all of these are legit things to consider. +1.