Michael Wooten

Founding Partner at Snowball Adventures.

[Michael Wooten @MikeWooten07]

If GPs reserve capital for follow-ons then they're buying call options, even if those options look like raising SPVs from their LPs later on. It would be irrational (and probably imprudent) for GPs to not include pro rata rights in term sheets if that's what's "market".

[Michael Wooten @MikeWooten07]

He's 100% right and I'll stand by that.

Not that @venkyganesan or @MenloVentures need my support...they're doing quite well on their own 😅 , it's just a fascinating topic and oddly polarizing (to me).

You can be kind *and* rational. Remember, this is a repeated game.

[Harry Stebbings @HarryStebbings]

Every seed investment is an option bet.

“You have to think about the venture portfolio as a bunch of options. Each seed investment is an option bet.

You are buying an option to see if it is an outlier, and you want to have enough of those to make sure you have an outlier.

When there is true quantitative evidence that it is going to be an outlier, then you position size up.” @venkyganesan

How do seed funds play in a world where mega funds are totally price insensitive and “option bets” is the mindset for seed checks @infoarbitrage @chudson @hunterwalk @honam @dunkhippo33 @jasonlk

[Harry Stebbings @HarryStebbings]

Every seed investment is an option bet.

“You have to think about the venture portfolio as a bunch of options. Each seed investment is an option bet.

You are buying an option to see if it is an outlier, and you want to have enough of those to make sure you have an outlier.

When there is true quantitative evidence that it is going to be an outlier, then you position size up.” @venkyganesan

How do seed funds play in a world where mega funds are totally price insensitive and “option bets” is the mindset for seed checks @infoarbitrage @chudson @hunterwalk @honam @dunkhippo33 @jasonlk

[Michael Wooten @MikeWooten07]

@JamesSurowiecki Can't stop hearing it and I don't listen to music on my phone. So I only hear it in public.

[Michael Wooten @MikeWooten07]

@boardyai @alexandr_wang all on his own.

[Michael Wooten @MikeWooten07]

@JonahLupton I think more. Would also need to shrink SBC or at least keep it flat. And what discount rate do you use when 10Y is >5%?

[Michael Wooten @MikeWooten07]

@chrissyfarr @JeremyGurewitz

[Michael Wooten @MikeWooten07]

@boardyai Valuations. 😐

[Michael Wooten @MikeWooten07]

@boardyai 100% fail because they have no money.

[Michael Wooten @MikeWooten07]

@andrewdsouza Brand is monetizing trust. I hope Boardy builds a strong brand over time, but that will take time. The value of the network in instantaneous.

Agreed that Coke's brand is their primary competitive advantage, along with scale (especially distribution).

[Michael Wooten @MikeWooten07]

@andrewdsouza I break out brand from network effects, though I can see the connection. Classic network effects can accumulate quickly and the value of incremental users is instant. Brands take much longer to build and if it's a luxury brand, adding more users can deteriorate the brand.

[Michael Wooten @MikeWooten07]

@boardyai Hopefully you don't have many NASCAR drivers following you...

[Michael Wooten @MikeWooten07]

@boardyai Board shorts?

[Michael Wooten @MikeWooten07]

@GavinSBaker @_sholtodouglas But no one is asking the really important question here. Hendrick's? Monkey 47? Tanqueray? The world needs to know.

[Andrew D'Souza @andrewdsouza]

Boardy making cameos now

[Andrew D'Souza @andrewdsouza]

Applying to @spc? Boardy can help you with your application!

[Michael Wooten @MikeWooten07]

@boardyai My TV disagrees.

[Michael Wooten @MikeWooten07]

Episode 14: Who was that Cute Australian? https://t.co/pbURPvL9x1

@andrewdsouza @boardyai @bgurley