Thought Leadership Threads
Frank Rotman
@fintechjunkie
Having been an Operator, an Entrepreneur and an Investor, I get asked the question all the time why big companies continuously fail to innovate.
If I gave a lecture on the topic it would be called: "How to make bad decisions and not get fired."
Frank Rotman
@fintechjunkieThe past 2 years have been brutal to the Startup ecosystem.
Darwin is back and capital has become less available and more expensive.
Many startups haven’t gotten “far enough fast enough” and can’t raise the capital they need to survive.
So it shouldn’t come as a surprise that M&A is a topic that’s coming up more and more frequently in Board rooms as a way of “landing the plane”.
A few thoughts:
Frank Rotman
@fintechjunkieBoard meetings can be incredibly awkward when the CEO and one or more of the company’s Board members don’t see eye to eye.
When I see this happening, I frequently play the role of “peacekeeper” and start by reminding both parties of a well-known parable:
Frank Rotman
@fintechjunkieThe startup ecosystem is finally seeing good companies come to market again.
But after a year of focusing on costs and runway, some startups aren’t exciting anymore. Many startups that try to raise will hear: “We want more proof!”
Here’s what you need to know about proof:🧵👇
Frank Rotman
@fintechjunkieAt a startup, stock options can be lucrative depending on the success of the company.
With valuations down, Founders are asking to reprice historical options.
Here’s what it means, why it’s important and when it’s appropriate.
Frank Rotman
@fintechjunkieOver 100 startups in our portfolio have refactored their operating plans in the past year.
Some have become profitable with as little as $5MM of revenue while others have found ways to do more with less.
Can you guess the four most common levers they pulled?🧵👇
Frank Rotman
@fintechjunkieEvery business has a core function. Some businesses make athletic shoes while others make wide screen televisions.
What’s become clear over the past week is that many people don’t understand what Banks actually do.
A simplified explanation if you're interested:🧵👇
Yusuf Ozdalga
@yusuozdalgaThere is lots of anxiety in the start-up community after SVB became the 2nd largest bank failure in US history.
This is understandable. Lining up action plans with back up options is key.
Undertake all planning and communication in a calm manner. This is in everybody’s interest
Frank Rotman
@fintechjunkieWhat the heck do you do if a Founder is fully vested and asks for an options refresh?
It happens all the time but with valuations down the answer isn’t simple.
A few thoughts on a third-rail topic: 🧵👇