Jake Rheude

B2B Marketing | Contributor @Forbes & @Entrepreneur

[Reads with Ravi @readswithravi]

“A calm mind, a fit body, and a house full of love. These things cannot be bought. They must be earned.” — @naval

[Jake Rheude @JakeRheude]

@heyramzi Guide

[Ramzi @heyramzi]

You're a founder, solopreneur, or PM who wants to master ClickUp 3.0 in a day?

I've created a free comprehensive Guide.

It's structured in a simple framework to help you leverage the tool's full potential.

RT, Reply "Guide" and follow me for to get the link in your DMs

[Emilie Rae Cochrane @EmCochranetv]

How cool is this!?

Jim Worthington, the oldest Tennessee letterman, threw out the first pitch ahead of Game 3 against South Carolina.

He's 98!! Sources say he's been practicing all week. #Vols

[Jake Rheude @JakeRheude]

The last 4 minutes of today’s @profgalloway’s Prof G Pod is the best 4 minute listen you can gift yourself to start the day.
https://t.co/y1rltBXCUx
@edels0n #Perspective

[Joe Pompliano @JoePompliano]

Lewis Hamilton had an incredible run at Mercedes.

The Mercedes F1 team received about 25% of all TV time during its championship-winning seasons, and its valuation increased from $400 million to $2.7 billion.

Now, Hamilton is signing with Ferrari & the stock is up 7% premarket.

[Jake Rheude @JakeRheude]

@SmuldersStefan send

[Jake Rheude @JakeRheude]

@Molson_Hart Used to use two. Caused major issues when the machine went down. Corrugate is very expensive as well (razor-razor blade model).

[Jake Rheude @JakeRheude]

@heyramzi Guide

[Geiger Capital @Geiger_Capital]

Some of the best of Charlie Munger:

“Every time you hear EBITDA, just substitute it with bullshit”. Absolute legend. 🐐

[Jake Rheude @JakeRheude]

@dillon_andrew_ @GoforDayten Cold

[Jake Rheude @JakeRheude]

@rajjha I’ll bite

[Jake Rheude @JakeRheude]

@coletonbragg

[Devon Loerop @devon_loerop]

Cost to date $50k. On track to keep the whole build cost under $75k. At $300/night x 365days x 80% occupancy = $87,600. This STR is on track to pay for itself in 1 year.

[Brandon Arvanaghi @brandon]

Sam Altman knew:

Bad things happen to you in business.

The most important trait for an entrepreneur, according to him?

He's showing it now:

[SEC Network @SECNetwork]

One of the wildest endings you will ever see 😱

Josh Dobbs. Jauan Jennings. Ballgame.

[CBS Sports College Football 🏈 @CBSSportsCFB]

Josh Dobbs' Hail Mary winner for @Vol_Football in 2016 was a finish for the ages 🍊

[Ryan Holiday @RyanHoliday]

A wise person once told me…if it’s a problem that can be solved by money, you don’t have a problem.

[Jake Rheude @JakeRheude]

@jmillspatrick @jmillspatrick Check out: https://t.co/QaS5e4IOjt

[Michael McGuiness @mikemcg0]

Q: Should startups always raise as much money as possible?

In the clip below, Marc Andreessen shares a framework that Benchmark co-founder Andy Rachleff taught him called "The Onion Theory of Risk".

You can think of a day 1 startup as having every conceivable kind of risk: founding team risk, product risk, technical risk, market acceptance risk, revenue risk, cost of sales risk, viral growth risk, etc.

A startup is basically just a long list of risks, and as Marc explains:

"The way I think about running a startup is the way I think about raising money. It's a process of peeling away layers of risk as you go."

You raise seed money to peel away the first two or three risks (e.g. founding team risk, product risk, initial launch risk).

You raise the Series A round to peel away the next layer of risks (e.g. recruiting risk, customer risk, revenue risk, cost of sales risk)

And so on.

Basically, you're peeling away risk as you're achieving milestones. And as you achieve milestones, you're both: making progress on your business and justifying raising more capital.

So in terms of fundraising, you should be calibrating the amount money you're raising to the risks you need to pull out of your business for you to raise your next round.

For example, if you're raising your Series A round, the best way to do that is to say to investors: "I raised a seed round then achieved ____ milestones and eliminated ____ risks. Now I'm going to raise $X for the Series A to achieve ____ milestones and eliminate ____ risks. This will get the company to ____ state for the Series B round. "

This seems fairly obvious, but as Marc points out, it's a much more systematic way of going about things versus just raising as much money as possible, renting fancy offices, and hiring as many people as you can to grow as fast as you can.

The more money you raise, the more you dilute your ownership stake in your business so it pays to be thoughtful.

Raise the capital you will need to achieve the milestones and eliminate the risks required for your next financing round. It also probably makes sense to give yourself some margin as safety because things never go exactly as planned in startup land.