Thought Leadership Threads

There’s a major structural flaw in how the VC ecosystem works that we don’t talk about enough.

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It’s a flaw that creates confusion and bad advice for Founders.

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And it’s a flaw that makes no sense when you dissect it. 🧵👇

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People constantly wonder why the US has so many Banks compared to other countries!

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Are you wondering if the US system makes sense?

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Do you want to know where it's heading?

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Here's some history, charts, and thoughts: 🧵👇

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SVB’s biggest mistake was creating a balance sheet that wasn’t resilient in a rising rate environment.

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Correctly calculating the Beta of their deposits would have led them to construct a short duration investment portfolio.

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A primer on Deposit Beta and Deposit Stability:🧵👇

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Every business has a core function. Some businesses make athletic shoes while others make wide screen televisions.

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What’s become clear over the past week is that many people don’t understand what Banks actually do.

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A simplified explanation if you're interested:🧵👇

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The rapid erosion of value in SVB's bond portfolio made plain the power of math and markets and how they can turn against you like an unexpected flash flood.
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Here is a simple explainer on basic bond math that is good to know even if you are not a bank CFO.

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There is lots of anxiety in the start-up community after SVB became the 2nd largest bank failure in US history.
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This is understandable. Lining up action plans with back up options is key.
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Undertake all planning and communication in a calm manner. This is in everybody’s interest

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What the heck do you do if a Founder is fully vested and asks for an options refresh?
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It happens all the time but with valuations down the answer isn’t simple.
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A few thoughts on a third-rail topic: 🧵👇

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Underfunding a startup is risky because downstream capital might not be there if the startup hasn’t made material progress.
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It’s a terrible idea to fund a plan that only gets a startup 80% of the way to Mars!

Here's why:🧵👇

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Mark Twain once said:
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“When everyone is looking for gold, it's a good time to be in the pick and shovel business.”
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What does this look like in crypto? 🧵👇

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