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It’s not simply a per hour cost basis: it’s the psychology of pouring your heart into being rejected when, statistically speaking, the writing was on the wall. I’ve seen founders pushed to breaking (myself included) by absolutely mundane shit investors don’t think twice about. Yeah, the “good ones” get over it and move on. Doesn’t change the impact. Fundraising, for founders, is not a back-of-the-envelope ROI calculation. It’s purely founder psychology management. You’ve raised multiple funds from LPs and should be insanely proud of that fact. Kudos. I’m sure it’s one of the more, if not most, difficult things you’ve ever done. However: you did that based on, correct me if I’m wrong, a pre-existing network and a safety net of wealth from previous exits as an employee. I’m not trying to “class shame”, that’s not wrong or bad and it doesn’t diminish you, your abilities, your insights or your fund, but founders’ predicaments are often very different and they have a lot more riding on the success of their startup. (Please - if I’m wrong, correct me! I’m not trying to be an ass here and I am making assumptions. I’m prepared to be very wrong.) My guess is that Justin Kan’s fundraising style is an emergent result of his initial conditions (circumstances at first fundraise) and intuition, and that it’s designed to minimize psychological risk (harmful self-doubt, second-guessing) as much as it’s designed to optimize for a successful close, because the two are tied hand-in-hand. My only conclusion is that it shouldn’t be dismissed based on anecdotal evidence from a VCs perspective without considering how wildly different founders’ perspectives can be. Again, probably no objective truth, just a whole ton of things to think about! |
Re: safety net -- I had some cash saved up from a previous exit, but certainly not enough to not work again. And the first year of Susa Ventures was pretty stressful because I was taking $0 salary, not sure how successful we'd be at fundraising, and getting staler and staler on the coding side (which makes going back to sw development jobs harder). Having a financial safety net definitely helped though.