In today's Tech Ticker episode, venture capitalists Sharon Wienbar and Pascal Levensohn explain to Sarah Lacy how entrepreneurs can avoid getting fired during a downturn. We watched and took notes. Below, the clip and notes on the VCs' six essential points:
- 0:30: VCs need to better set founders' expectations. And vice versa, too.
- 1:27: Don't spend.
- 2:15: Don't respond to a bad quarter by doubling-down on engineering. Prune your management team.
- 2:55: If you take VC, you have to play by their rules.
- 3:29: Do you want to be rich or do you want to be king?
- 5:31: Fiduciary duty is the board's concern (not the founder). In other words, they have to look out for all the shareholders.
- 6:08: VCs make the most money when the founder goes all the way. The suit just wants money.