Investor Stories 448: Hard Lessons in Investing: Mistiming Trends, Relying on Partnership Debate, and Avoiding Good Money After Bad (Hilaly, Dash, Rizik)
Episode
8 min
Read time
2 min
Topics
Health & Wellness, Relationships, Investing
AI-Generated Summary
Key Takeaways
- ✓Trend Timing: Technology adoption takes far longer than Silicon Valley assumes. Cloud computing seemed obvious by mid-2000s, yet on-premise software still exceeds 50% market share twenty years later.
- ✓Partnership Discipline: IVP uses a "sleep on it" practice where partners pause before committing, allowing investors to process feedback and assess whether conviction level justifies long-term partnership responsibility.
- ✓Trust Your Confusion: When an investment thesis doesn't make sense to you, it likely has fundamental problems. Avoid group think and acronym-heavy pitches—founders must make concepts clear or it signals misalignment.
What It Covers
Three venture investors share critical lessons: mistiming technology adoption cycles, leveraging partnership debate to avoid bad investments, and recognizing when conviction is lacking.
Key Questions Answered
- •Trend Timing: Technology adoption takes far longer than Silicon Valley assumes. Cloud computing seemed obvious by mid-2000s, yet on-premise software still exceeds 50% market share twenty years later.
- •Partnership Discipline: IVP uses a "sleep on it" practice where partners pause before committing, allowing investors to process feedback and assess whether conviction level justifies long-term partnership responsibility.
- •Trust Your Confusion: When an investment thesis doesn't make sense to you, it likely has fundamental problems. Avoid group think and acronym-heavy pitches—founders must make concepts clear or it signals misalignment.
Notable Moment
A founder told an investor he just didn't understand the business. The investor passed, and the company raised significant capital before quickly going out of business.
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Investor Stories 497: Passing on Snapchat, Canva, and Hugging Face: The Rules of Thumb That Cost VCs Billions (Vaidya, Fubini and Patel, Rosenbloom)
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