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Why Does David Tisch Think High Ownership at Seed Is Overrated? · The Twenty Minute VC: Venture Capital | Startup Funding | The Pitch

The Twenty Minute VC: Venture Capital | Startup Funding | The Pitch

20VC: David Tisch on Why High Ownership and Concentration is BS | Why No Manager Actually Wants to Stay Small | Why Competing with the Mega Platforms is a Losing Game | Why the Lean Startup is a Fake?

David Tisch is the Founder of Box Group, one of the best seed funds of the last decade with early investments in Cursor, Baseten and Clay to name a few. Today the fund invests from two funds, a $275M seed fund and a $275M opportunity fund. AGENDA: 10:40 Why we have less dilution now than ever before 12:50 Why I don't want to compete with the best VCs, and…

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Notes

  1. Why Is Today's Venture Market Not a Repeat of 2021? at 4:51

    David Tisch says the venture market now has nothing to do with 2021. Full answer

  2. Why Do Later Startup Rounds Dilute Founders Less? at 9:49

    David Tisch says fast-growing companies now give up far less of the company in later rounds, so an early check gets diluted less. Full answer

  3. Why Does David Tisch Think High Ownership at Seed Is Overrated? at 12:57

    David Tisch says trying to buy 10 to 20 percent of a true outlier in the seed round, and beat the best venture firms to do it, is a bet he has never understood. Full answer

  4. Is the Lean Startup Method Fake? at 18:47

    David Tisch says the lean startup was a total fake. Full answer

  5. Why Does David Tisch Take 1 Percent Ownership? at 23:49

    David Tisch will take a 1 percent or 2 percent stake when the founder is unbelievable and the opportunity is amazing. Full answer

  6. Why Did Box Group Stop Funding Brands? at 40:33

    David Tisch says Box Group has stopped funding brands, and he does not think the brands are small. Full answer

  7. What Is Rogo in Finance AI? at 42:09

    David Tisch was in the earliest round of Rogo, a company building AI for finance. Full answer

  8. Does Pro Rata Help Founders More Than Firms? at 45:41

    David Tisch says having pro rata in the documents helps the founder more than it helps the firm. Full answer

  9. Should Seed Investors Sell When Founders Take Money Off the Table? at 49:36

    David Tisch does not sell early, even when founders take money off the table. He works for the LPs who invest money in the firm, and his customers are founders. Full answer

  10. Why Do New Venture Managers Outgrow a Small Fund? at 54:13

    David Tisch says new venture managers do not plan to stay with a small fund. Very few people get into venture wanting to keep doing the same thing. Full answer

  11. Why Does David Tisch Ban Negativity in Seed Decisions? at 1:01:44

    David Tisch bars negativity when his firm decides on early stage deals. Full answer

  12. Why Is Y Combinator Different From Every Other Venture Firm? at 1:07:11

    David Tisch says Y Combinator is the only differentiated product in venture because no one else gets the ownership Y Combinator gets. Full answer

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