Highlighted by Michael Liu
In product and in performance marketing, you know right away if what you’re doing is working or not. You launch a campaign and instantly see if customers are signing up. You launch a product and instantly know if customers are using it. This is not the case for venture capital. It takes years, even decades, for an investment to prove out and the journey to greatness is not linear.
2. Reverse Vesting — If you do not know what it means, read about it! This is a MUST. If you found a company and divide all its shares between the co-founders on day one, with no buy-back or other fallback mechanism, you just made one of the biggest mistakes in your life. If you want to get rid of a co-founder that got all his shares upfront, your company is basically dead. No investor with a bit sense in his mind will fund a company in its early years that has so much equity held by a person that doesn’t work there anymore.