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Ben
@benersing
🌶️Spicy take: Venture capital as an industry is now mature and super saturated. Typically when this occurs, new entrants emerge with disruptive models... 👀 wdyt? Share the name of an organization that's experimenting with innovative venture financing mechanisms
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Integrated Kyle e/acc
@kylesamani
call me old school, but I don't really know how to disrupt hands-on work with founders
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Joe Petrich 🟪
@jpetrich
I think the most disruptive change to the VC model would be something that aligns incentives better. I'm not sure what that looks like (and I don't think the model is broken today) but I don't think the value-add piece is the part that would be susceptible to disruption.
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Ben
@benersing
Say more. Are you referring to Preferred vs Common Shares and liquidation preferences? Why don't you think the value-add piece would be susceptible to disruption? (For the record, I don't think its broken today. Just getting mature as every industry does.)
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Joe Petrich 🟪
@jpetrich
I was thinking simply about how valuation usually isn't the deciding factor when choosing investors, but it's the only one that's guaranteed. The value you expect an investor to add in other ways may not materialize and there's not good ways to tie their equity to those factors. Maybe there shouldn't be 🤷
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Ben
@benersing
Thanks for clarifying. Yes, that makes sense. It's often a bit messy, but we'll add warrant kickers alongside preferred equity to bring down the effective valuation in the event we deliver on the value we expect to bring to the founder.
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