By Larry Chiang
What VCs pay attention to.
What sweat equity really means.
How sweat equity really works.
How things might turn out.
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Larry Chiang (@LarryChiang) |
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Sweat equity has 12 very common patterns. Here’s what VCs pay attention to (bc we’re too dumb to get tech)
START. #LarryChiang @LarryChiang |
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Larry Chiang (@LarryChiang) |
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Where does all that #SiliconValley sweat equity come from!?!
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A lot of people definitely lose.
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Larry Chiang (@LarryChiang) |
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Attrition is like breakage. Someone wins when breakage happens. Sum, lose. #SweatEquity. @LarryChiang
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Larry Chiang (@LarryChiang) |
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There is a nice chunk of equity when you cofound a company with a sitting GP (vc). #nonEmployeeCofounder pic.twitter.com/2socCxt7qM
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Larry Chiang (@LarryChiang) |
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3 co-founders meshing is like a manage a trois where no one feels left out. Can’t happen. #threeWay #WrongWay #cs183team
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Larry Chiang (@LarryChiang) |
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For example, THIS manage a trois in bed. {if you’re not fluent in French like me it means 3-way. Applies to founders pic.twitter.com/rKS7vBzqFr
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Larry Chiang (@LarryChiang) |
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“Firing founders. Trust me, your equity evaporates after the [eventual & amorphous] recap.”
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Larry Chiang (@LarryChiang) |
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Never trade your dog for someone else’s cat. {Aka selling your startup for all stock}
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Larry Chiang (@LarryChiang) |
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A lot of the value lies in the trash heap. #cs183e. Edit! #SweatEquity
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Asse9 Austin Secret (@asse9) |
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Glorified “scraping”.
Repurposed momentum. Existing parades. All, good |
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Larry Chiang (@LarryChiang) |
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“Buy stock in you own startup whenever you can.”
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Keith Teare (@kteare) |
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This is spot on – @JoshKopelman @firstround What the Seed Funding Boom Means for Raising a Series A – firstround.com/review/what-th…
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Robin Klein (@robinklein) |
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Silicon Valley is broken – how to fix it>>a cold hard look at the Series A/B crunch from web veteran, friend @kteare us6.campaign-archive2.com/?u=8454d2b163d…
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Larry Chiang (@LarryChiang) |
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“Buy stock in you own startup whenever you can.”
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Asse9 Austin Secret (@asse9) |
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Like series B, 2nd round of Botox…, can get messy. VCs a problem bc u can’t just do it One round; 1x twitter.com/kteare/status/…
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Larry Chiang (@LarryChiang) |
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Remember that team anti Christ is using the wrong logo. The upside down cross signifies how 3 mentees died inverted. Like Maverick #topGun
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Larry Chiang (@LarryChiang) |
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For Peter’s sake, google what #cs183clawback is. Uber #nonEmployeeCoFounder, did. U can too
–@LarryChiang LUVS #cs183s‘ |
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Larry Chiang (@LarryChiang) |
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If and when you do get fired from your own startup, execute the @LarryChiang countermeasures. Don’t go on vacay. #cs183vc
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Larry Chiang (@LarryChiang) |
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The best sweat equity is from killing five birds with one stone. Confucius says, @LarryChiang tweet(ed)
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Larry Chiang (@LarryChiang) |
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When u quit a great company with a great CEO, he gives you a million for ~25% and shakes your hand, out-the-door #sweatEquity
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Larry Chiang (@LarryChiang) |
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Remember, your planet has 90+% of the galaxy’s liquid water. That #sweatEquity is all house money. #ch2
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Larry Chiang (@LarryChiang) |
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Sweat equity. Even you lapdog wants a JOB so put that canine on a vesting sched and start up. @LarryChiang pic.twitter.com/mOkY6bxeET
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Larry Chiang (@LarryChiang) |
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Sweat equity. Import from Vancouver “Sumi”, ‘Yumi’, Yoshi, Amelie, Ying and Astro. Overstay #df16
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Larry Chiang (@LarryChiang) |
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If your two cofounders up and quit and go to Harvard Business school, go buy 20 stuffed animals.
@LarryChiang pic.twitter.com/PGCmccjoOd |
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Larry Chiang (@LarryChiang) |
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SWEAT EQUITY does not mean cash poor. Done correctly, you crank cash while you build equity sans sweat
—@LarryChiang |
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Larry Chiang (@LarryChiang) |
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Sweat equity has about a dozen very common patterns. Here’s what to pay attention to…
END. #LarryChiang |
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