A VC - Latest Comments in A Lesson From Morty

Re: A Lesson From Morty

fredwilson — Thu, 02 Jul 2009 13:43:27 -0000

That's good to hear

Re: A Lesson From Morty

John Greer — Thu, 02 Jul 2009 12:56:16 -0000

Very interesting.
This could not have come at a better time for me...

Re: A Lesson From Morty

fredwilson — Thu, 18 Jun 2009 08:15:14 -0000

I think he would have done fine. Those 70s songs he wrote are amazing

Re: A Lesson From Morty

Christian Brucculeri — Mon, 15 Jun 2009 23:19:45 -0000

So it goes with standard revenue streams. I must be one of a very small handful of people that kind of miss old record labels. Bruce Springsteen never would have broken in today's market.

Re: A Lesson From Morty

David Semeria — Sun, 14 Jun 2009 13:36:38 -0000

They are reasonable only if the founders bring little or no IP to the table.

Re: A Lesson From Morty

Steve Kane — Fri, 12 Jun 2009 18:31:15 -0000

VC's compelling portfolio companies to pay for legal closing costs (and
sometimes other due diligence costs) is ridiculous, and a blight on the
industry and asset class. Its bad for innovation, bad for entrepreenurs, bad
for portfolio companies, and bad for LPs (the investors who fund VCs)

Maybe 0.5% of any funding goes to closing costs (sometimes more). That means
0.5% of venture funds are NOT being used to fuel portfolio companies work
at $30 billion/year of venture investment, that's $150 million year that
should be working on portfolio company milestones and goals.

Oh, and by the way, its a de facto $150 million compensation boost for VC
general partners, who pocket more of the management fees instead of using
them for the actual costs of operating the funds, e.g. the legal, closing
and other due diligence costs.

Perhaps VC general partners feel they are under compensated and they think
we should feel their pain...?

Re: A Lesson From Morty

shafqat — Fri, 12 Jun 2009 18:25:54 -0000

Fred - would be awesome to see this explained point explained more in a post. I've debated this point with fellow entrepreneurs a lot, and would be good to hear from the other side of the table.

Re: A Lesson From Morty

jsrand — Fri, 12 Jun 2009 16:39:07 -0000

I think you've got a book in here somewhere - "Tuesdays with Morty"?

Re: A Lesson From Morty

kriswood — Fri, 12 Jun 2009 14:48:00 -0000

Totally agree. It's a matter of getting a good deal in principal and not who wins the most points. I simply find that if I give on all the points I don't care about BEFORE I hold firm on those that I do, it's more difficult. It's much easier to say, "I'll give you points A, B, & C but I need points 1 & 2." Often, principal-to-principal discussions, like you said, can work it out much better than over zealous representatives. Which reminds me of another lesson - your representatives do, in fact, represent you. So make sure that they do business the same way you do.

Re: A Lesson From Morty

fredwilson — Fri, 12 Jun 2009 14:28:20 -0000

And you never pay VC's legal fees which is about a standard a provision as I've ever seen

Re: A Lesson From Morty

fredwilson — Fri, 12 Jun 2009 14:21:30 -0000

Thanks charles. I'll go read the whole thing

Re: A Lesson From Morty

fredwilson — Fri, 12 Jun 2009 14:10:22 -0000

Jay Rand will have to write them

Re: A Lesson From Morty

fredwilson — Fri, 12 Jun 2009 14:10:21 -0000

Not intentional. But it must say something about my perceptions of the two words

Re: A Lesson From Morty

fredwilson — Fri, 12 Jun 2009 14:10:20 -0000

Just like morty and I did :)

Re: A Lesson From Morty

fredwilson — Fri, 12 Jun 2009 14:10:19 -0000

Great point. I know where my drive comes from JLM and I still have a chip on my shoulder (hopefully in a good way) because of it

Re: A Lesson From Morty

fredwilson — Fri, 12 Jun 2009 13:58:18 -0000

Nope. But close

Re: A Lesson From Morty

fredwilson — Fri, 12 Jun 2009 13:58:17 -0000

Thanks for the link ivan

Re: A Lesson From Morty

fredwilson — Fri, 12 Jun 2009 13:52:13 -0000

Yes, it slows you down a lot. But sometimes its best to slow down

Re: A Lesson From Morty

fredwilson — Fri, 12 Jun 2009 13:50:26 -0000

The only real way to learn, unfortunately

Re: A Lesson From Morty

fredwilson — Fri, 12 Jun 2009 13:46:24 -0000

'Standard' analog business terms are almost always unworkable in a digital world

Re: A Lesson From Morty

fredwilson — Fri, 12 Jun 2009 13:46:23 -0000

That's an inspiring story

Re: A Lesson From Morty

fredwilson — Fri, 12 Jun 2009 13:46:22 -0000

Yup. But he's not a guy who takes thanks or compliments. He's a crumudgeon in the best sense of the word

Re: A Lesson From Morty

fredwilson — Fri, 12 Jun 2009 13:46:21 -0000

My dad is big on thermodynamics particulalry the second law

Re: A Lesson From Morty

fredwilson — Fri, 12 Jun 2009 13:46:20 -0000

I agree that you need to negotiate in totality. But I don't like to horsetrade. There are four or five points I want/need. I've outlined them on this blog a few times now. I negotiate from principal more than trying to get my fair share of wins. I'd rather lose all of the points I don't care about and get the few I do care about

Re: A Lesson From Morty

fredwilson — Fri, 12 Jun 2009 13:46:19 -0000

Yup