How to Start a Startup - Lecture 9 Notes

October 21, 2014

I’m taking down notes for Sam Altman’s class, How to Start a Startup and I figured I’d start sharing them. This is for the ninth lecture with the following notes:

How to Raise Money

Initial Questions

Q. What makes you want to invest in a founder/company?

Ron:

Marc:

Parker:

Q. What do you wish founders did differently?

Marc:

Ron:

Q. Tactics - how does the process go? Can people email you directly? Do they need to give an introduction? How many meetings does it take for you to make a decision? How do you figure out what the right terms are? When can a founder ask you for a cheque?

Ron:

Marc:

Q. What terms should founders care most about?

Parker:

Q. How should founders negotiate? How do figure out what are the terms?

Parker:

Q. Is there a maximum amount of the company you think founders should sell in their seed round/series A?

Parker:

Ron:

Q. Could you tell the story of the most successful investment you’ve ever made and how that came to happen?

Ron:

Marc:

Ron:

Audience questions

Q. Does raising money help you with an exit or an empire?

Ron:

Marc:

Q. What should founders do for capital intensive companies to still … (cannot identify)

Marc:

Q. What is a sign that you should avoid from a particular investor?

Ron:

Marc:

Ron:

Parker:

Q. What are the constraint on how many companies you invest in?

Ron:

Marc:

Q. What convinces you to invest in a company with no product or no traction?

Ron:

Marc:

Q. Can you talk about the idea of board structure?

Parker:

Marc: