Jacob Grainger

Pender Ventures

[Jason ✨👾SaaStr.Ai✨ Lemkin @jasonlk]

Here's the thing we're all re-learning in 2024:

To be VC-backed, you truly have to grow at insane rates

At least, Triple Triple Double Double (3x 3x 2x 2x)

Ideally, Triple Triple Triple Double Double

If that's not you, don't raise. Or stop raising. Or at least, be realistic.

[Ed Suh @edsuh]

A lesson in dilution & entry prices:

Below are 2 sample startups. They're made up, but loosely based on real examples & completely feasible.

1) Company A raises a seed at a $10M valuation, raises an A for 20% dilution, then never raises again, eventually exiting for $1B.
Seed round MOIC = 80x (1B/10M * 80%)

2) Company B raises a hot seed at a $50M valuation, then 5 more rounds, totaling 80% dilution. It eventually exits for $10B, a decacorn!
Seed round MOIC = 40x (10B/50M * 20%)

In this case, a mere unicorn exit gives investors a 2x higher cash on cash return than a decacorn exit. Founders and early employees also make more $ from the former. Dilution matters. Entry price matters. Valuations alone can be misleading.

[Jonathan Lehr @fendien]

As a long-time Seed investor @Work_Bench, I’ve seen so many founders fundraise without realizing the long-term impacts on the terms they agree to

There's no better time than YC demo day to shed some light on the various incentives & biases of different seed investors 🧵👇

[Andrew McCalip @andrewmccalip]

Meissner effect or bust: Day 8.5

We made the rocks

[Jason Shuman @JasonrShuman]

Venture Capital is F*cking hard.

With the risk free rate climbing and competition increasing it won't get any easier and a wash out is coming.

Here's some of the real math required to generate industry leading returns in this highly illiquid asset class.

[BKR Capital @BKRCapital]

His panel, ‘Early-Stage Funds Fueling Canada’s Future’, will also feature @AllenLau of @twosmallfishvc, @IrfhanRawji of @relayventures and @JacobGGrainger of @PlugandPlayTC. If you’re at the Summit, check it out at 5 PM PST on the Main Stage!

#BKRCapital #VentureCapital

[Jacob Grainger @JacobGGrainger]

@AndrewArruda @tfadell Good choice! It’s a great read

[Jacob Grainger @JacobGGrainger]

Will the next iteration of the gig economy be people executing tasks for #AI in the real world and relaying that back to #AutoGPT for payment?

[samir kaji @Samirkaji]

A lot of panic re: SVB (you should see my phone/emails!). A bank run driven by panic is the real risk here, not the action of selling LT securities at loss

I have no inside information as I left SVB in 2012, but know enough about banking to piece together.

Quick 🧵

[Jacob Grainger @JacobGGrainger]

@AndrewArruda 😂

[Jacob Grainger @JacobGGrainger]

@AndrewArruda Can I introduce you to a Bay Area founder I know? I think his health startup fits your criteria and he’s a really nice guy

[Jacob Grainger @JacobGGrainger]

@chrissyfarr Keep citrus and fresh herbs around to finish a dish once it is cooked

[Jacob Grainger @JacobGGrainger]

@HarryStebbings How do you, as someone investing on ~10 year time lines, keep your feedback loops short?

[Jacob Grainger @JacobGGrainger]

@Jason @TahoeWeather JCal, come skiing in @BanffNP . Wet is rarely a problem. World class snow and I can introduce you to some investors and startups

[Jacob Grainger @JacobGGrainger]

@chrissyfarr Right?! A legacy system that will be disrupted

[Jacob Grainger @JacobGGrainger]

@HarryStebbings I bet @BillAckman asks himself this all the time

[Jacob Grainger @JacobGGrainger]

Canada’s immigration policy is a huge strength. 27% of the men on the @CanadaSoccerEN World Cup team weren’t born in Canada. As H1B visas expire due to tech industry layoffs Canada should capture that talent. Outside talent helps our country be world class. #FIFAWorldCup #layoffs

[Jacob Grainger @JacobGGrainger]

@daisydwolf @vijaypande Interesting read Daisy!

[Arpit Gupta @arpitrage]

There seem to be different measures of this: but an interesting sign that SF may be losing dominance for startup activity. cc @startupecon

https://t.co/zh6Pj6h2oV

[Jacob Grainger @JacobGGrainger]

@dvasishtha We are deploying capital right now!