Readit NewsCan highly recommend it!
But hey, it's coming from a company that's selling something called Full Self Driving for the past 10 years, so the deception is not really that surprising.
Makes you wonder how Trevor Milton feels about all this - after all, they only stated in the infamous video that the truck is 'in motion' - never advertised it's 100% an 'autonomous motion' :)
Are you a Trevor Milton fan? I didn’t see as much merit in his body of work.
That means they abandoned 1/3 portfolio strategy they used to have (1/3 loses money, 1/3 returns exactly 1, 1/3 returns fund) but instead are focusing on steady returns by SAAS companies at 2-3x of the investment.
There are a few major implications:
- for the founders; if you don't fit their narrative, for example you have big chunk of revenue coming from services or you have only few enterprise clients, then you are out of luck
- for the funds; the deals are overly competitive driving up the price and diminishing the returns
- for the market; up until the economy is up to the right, things will be fine. Once things start changing, the first things to go will be a lot of these "nice to have" SAAS companies. In turn they will take down growth equity and freeze funding at the later stage (Series B, C, D, ...).
The last point applies to also to the the article. You can build bootstrapped $1M ARR business, but can you defend it? I think that's the biggest question.
Our modus operandi was that a growth equity investment should _never_ go to zero. The new portfolio thinking has shifted to the right: 1/3 make 1-2x, 1/3 make 2-3x, 1/3 make 3x or more.
> your startup
You're under the misconception that companies "belong" to individuals. Companies are legal frameworks that society has decided upon. We could legally decide that M&A just isn't allowed, ever, if we wanted to. (I don't think that would be a good idea, but I hope you see my point.)
So “society” should be able to veto a sale, but when payroll is due the owners are on the hook?