Startup Gambling: Economics of Venture Capital - Company Forensics

Ғылым және технология

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The controversial Boosted video ► • Boosted Boards: from f...
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#startups #Slidebean #investing
The relationship between founders and investors is a weird, symbiotic phenomenon.
We, entrepreneurs, create companies, we work day and night, we lose sleep and get gray hair to see our vision through- and someone on the other side provides the funding, and just sits and relax while we make them money.
That’s just a rookie oversimplification. The reality is, most of the companies, most of the startups that you can think of, could not exist if it wasn’t for venture capital. That includes your Google, your Airbnb, your ClickUp, your TikTok, even your Candy Crush and your Telegram.
Garry Tan published a video the other day on how he turned a $300K investment into $2B.
(By the way, we offered Garry a seat in this video, but he didn’t want to).
Anyway, he invested in Coinbase, in their first-ever round of funding, and now that Coinbase went public his investment has multiplied over 6000x.
This is transformative, life-changing money. Tan went from entrepreneur to being worth a few million dollars, to being worth hundreds of millions, all with one accurate bet.
That is very much the investment thesis of venture capital. Most startups fail, everybody knows that. Most startups will fail. Experienced investors are very much prepared to lose their money because they are not looking for 1x or 2x returns on investment, they are looking for that 6000x, unicorn, life-changing win.
You would think that there’s a simple approach to it. I have money, I invest, I get money if the company succeeds- but there is a whole industry of venture capital, with layers of partners, limited partners, funds and legal structures- and most entrepreneurs come into this world having no idea how any of this stuff works. Many investors too, actually.
I had a broad idea of how it worked, but as I researched this video I realized how hard this info is to find and to understand. Luckily for you, we are good at getting complex things into simpler form. Shameless plug. Let’s get on with the video.
0:00 Angels & VCs - Intro
2:15 Angels & VCs - Who can raise this type of money?
6:15 Angels & VCs - Coinbase as our case study
7:51 Angels & VCs - Angel investors
13:14 Angels & VCs - Venture Capital funds
15:26 Angels & VCs - In-depth numbers, is this profitbale?
---
Read the video transcription + sources: slidebean.com/blog/startups-a...
Follow Caya: / cayahere and / caya_here

Пікірлер: 163

  • @ad905
    @ad9053 жыл бұрын

    and now I am watching the video about Boosted! Nice move Garry

  • @animekollectivedesignco

    @animekollectivedesignco

    3 жыл бұрын

    LOL

  • @makakasha

    @makakasha

    3 жыл бұрын

    Lol

  • @pyrhockz

    @pyrhockz

    3 жыл бұрын

    Streisand effect much.

  • @david82leo

    @david82leo

    3 жыл бұрын

    The brilliance of Caya 👏🏼👏🏼👏🏼

  • @makakasha

    @makakasha

    3 жыл бұрын

    I just love how he teardown companies history & News, so informative

  • @GodotOfficial
    @GodotOfficial3 жыл бұрын

    I learned two things from this video: 1. How angel investing and venture capital works 2. Garry Tan is sensitive af

  • @melanineyedoc
    @melanineyedoc3 жыл бұрын

    Production quality is improving day by day. This is brilliant.

  • @slidebean

    @slidebean

    3 жыл бұрын

    We keep trying to get better and better

  • @joseph7858

    @joseph7858

    3 жыл бұрын

    @@slidebean good to have you back, dear Caya. Without you doing the explaining/moderation it had lost a lot to me…

  • @princevimbai1
    @princevimbai13 жыл бұрын

    I love how Garry Tan said "delete the "Boosted" video and I will consider it" and their response was to link the said video in the description. LOL

  • @coolthought8456

    @coolthought8456

    2 жыл бұрын

    It takes time, effort and money to create these content. Telling someone to delete such video without saying why…. It just baffles everyone

  • @rne1223
    @rne12233 жыл бұрын

    I'm going to need to watch this video five more times at 50% speed.

  • @joeljededemekong5628
    @joeljededemekong56283 жыл бұрын

    What happened to Garry and boosted?......y combinator was only mentioned once so whats the issue?

  • @cayahere

    @cayahere

    3 жыл бұрын

    I’ve been asking myself the same thing.

  • @snakesncl_8146
    @snakesncl_81463 жыл бұрын

    The tweet exchange doesn't look very good for Gary, it's like "maybe you are worthy of my time if you don't mentioned one of my failures" Pretty sure he does really well, so why? Feels quite snobbish :(

  • @abyssuserigo

    @abyssuserigo

    3 жыл бұрын

    Wandering the same exact thing.

  • @tabeebyeamin9986

    @tabeebyeamin9986

    3 жыл бұрын

    was it not a joke? lol

  • @maggiejetson7904

    @maggiejetson7904

    2 жыл бұрын

    Most likely a joke and he didn't say it.

  • @nileshudipi1691

    @nileshudipi1691

    2 жыл бұрын

    It's a joke. Get a sense of humor

  • @soleypas
    @soleypas3 жыл бұрын

    Wow, the video quality is of the chart! Well done!

  • @msibilkoloft8673
    @msibilkoloft86733 жыл бұрын

    I'm following you from the beginning days of your YT channel and it helped me growing my startup that was funded by DesignFarmBerlin in Germany. Your videos are massively improved. I love the new style. And I always share your channel with the new people get accepted in this accelerator. Keep up 👏👍❤️

  • @juliansage2
    @juliansage23 жыл бұрын

    Always getting better!

  • @anshulmohan27
    @anshulmohan273 жыл бұрын

    All the sweat and hard work you have put in to reach this stage. Good work, man! Keep it up.

  • @slidebean

    @slidebean

    3 жыл бұрын

    Thanks! Will do!

  • @frepn
    @frepn3 жыл бұрын

    Man, right now I am studying for an MBA and as soon I am approved, I'd love to apply for a summer position! Hope you guys like brazilian spirit

  • @nnennaumelloh8834
    @nnennaumelloh88343 жыл бұрын

    I love your videos so much! Your video quality has always been good. It's exciting to see you guys get better and better. I know you said the media company is not a priority but if it became more relevant...I'd ship it.

  • @amithodhana1
    @amithodhana12 жыл бұрын

    Great work Caya n team...To the point and crystal clear ..

  • @karanchudasama2422
    @karanchudasama24223 жыл бұрын

    Very clear way to make things look like simple 🙏❤️

  • @b00032400
    @b000324003 жыл бұрын

    Great content, as usual. Love you, Slidebean.

  • @cayahere

    @cayahere

    3 жыл бұрын

  • @makakasha
    @makakasha3 жыл бұрын

    I just love your content, I was encouraged to progress my startup because of your content ❤️

  • @cayahere

    @cayahere

    3 жыл бұрын

    Amazing! keep us posted about it!

  • @temitopeshoniyi
    @temitopeshoniyi3 жыл бұрын

    Thanks guys for this lovely insight.

  • @eduncdam
    @eduncdam3 жыл бұрын

    Great video brother, keep em coming. Thank you!

  • @AR-qo4zz
    @AR-qo4zz3 жыл бұрын

    Garry comes across as a cool VC that's not beyond reproach or anything of that sorts. Hopefully he's just pulling your leg on Twitter and you guys can come together for a video as I thoroughly enjoy both your contents

  • @nosaiyare2151
    @nosaiyare21513 жыл бұрын

    Slide Bean should pivot to video production at this point. The Canva for video perhaps? Amazing visuals

  • @rbrown31j19z
    @rbrown31j19z2 жыл бұрын

    Great video. As a budding business enthusiast this was very educational. Some of this information will be useful in the future. Cheers.

  • @marlainee
    @marlainee3 жыл бұрын

    Garry Tan's presence would've also been much valued. Informative video, as always! Thank you, Caya!

  • @wanjohi
    @wanjohi2 жыл бұрын

    Oh you gotta be kidding me! I clicked thinking I might have missed this video. Little did I know I know I've already watched it. I am not gonna lie, slodebean you had me in the first half. xD Great video though.

  • @hardikvaidya
    @hardikvaidya2 жыл бұрын

    Fantastic video! Well done. This was crisp and clear.

  • @slidebean

    @slidebean

    2 жыл бұрын

    Glad you enjoyed it!

  • @AlanMynah
    @AlanMynah3 жыл бұрын

    Never knew anything of Boosted before that tweet in your vid. Now I do.

  • @neanda
    @neanda3 жыл бұрын

    very good information, I hadn't really looked at it from their perspective

  • @prhasn
    @prhasn3 жыл бұрын

    00:42 This is unreasonable given that Boosted video was very objective. Then again, it might be that he just does not want to upset some people.

  • @donaldmacisaac8479

    @donaldmacisaac8479

    2 жыл бұрын

    He was kidding, it was a joke

  • @FelixHuray
    @FelixHuray3 жыл бұрын

    love your content about startups and vc. keep them coming. big fan from indonesia !!!

  • @cayahere

    @cayahere

    3 жыл бұрын

    glad it's been useful :D

  • @wazab.
    @wazab. Жыл бұрын

    Very insightful. Thanks for a killer presentation

  • @maxgriffin9403
    @maxgriffin94033 жыл бұрын

    Another incredible Slidebean production 👏🏽🚀

  • @slidebean

    @slidebean

    3 жыл бұрын

    🙌

  • @coolthought8456
    @coolthought84562 жыл бұрын

    It will be much nicer to look at this from perspectives of several VCs and angel investors. Understanding their motivation, demand and how they improve their odds. Maybe can try with VCs who are much less well known or whoever VC who is kind enough to provide their perspective.

  • @danielabetts
    @danielabetts3 жыл бұрын

    Absolutely fantastic video. Thank you.

  • @slidebean

    @slidebean

    3 жыл бұрын

    Glad you enjoyed it!

  • @alexandertsigaridas5411
    @alexandertsigaridas54113 жыл бұрын

    Thanks a lot for another useful video. I was surprised when you said that if an angelgroup charges the entrepreneur for pitching, we should run the other way. We have done it (unsuccesfully) last year in the UK and every angels group that I have came across, also charge both the entrepreneur as well as the investors.

  • @md.abdullaalwailykhanchowd3974
    @md.abdullaalwailykhanchowd39743 жыл бұрын

    For me "Tech startup” means “Technical service Startups”.

  • @cayahere

    @cayahere

    3 жыл бұрын

    Wow! That's new to me.

  • @jensenraylight8011

    @jensenraylight8011

    3 жыл бұрын

    so, selling your secondhand item on ebay, or making a facebook profile isn't considered a tech startup?

  • @InnovaCity
    @InnovaCity3 жыл бұрын

    Amazing, as always.

  • @ferddoesweirdthingsinlife1040
    @ferddoesweirdthingsinlife10403 жыл бұрын

    What is this Garry Tan and Boosted thing?

  • @eric-id6bk

    @eric-id6bk

    3 жыл бұрын

    I imagine he lost a lot of money on it

  • @MENKIN82
    @MENKIN823 жыл бұрын

    thank you man i learn from you so much hope to be that 4% :)

  • @Ratnas.academy
    @Ratnas.academy3 жыл бұрын

    Your vedios really inspire me I have a social media start up idea it going to be massive game changer in India. I am seriously looking for investors

  • @TimStanford1
    @TimStanford13 жыл бұрын

    Welcome back :-)

  • @mr_c.i.c
    @mr_c.i.c2 жыл бұрын

    The effort put into making of this video is very noticeable. Keep it up

  • @slidebean

    @slidebean

    2 жыл бұрын

    Took some time but we are happy with how we came out. Glad you noticed it!

  • @mr_c.i.c

    @mr_c.i.c

    2 жыл бұрын

    @@slidebean yes nowadays you're taking longer to upload but the quality has also gotten better. You're welcome.

  • @CS-pi4gn
    @CS-pi4gn2 жыл бұрын

    I think if you are going to talk about Andreessen's fund performance you should explain to the viewers the J curve; IRR will be negative a few years after the funds inception and you wouldn't expect it to beat the S&P500 IRR until about 10-15 years after the fund was first founded (as this is when all companies would have IPO'd, failed or been sold on)

  • @canadianentrepreneur7867
    @canadianentrepreneur78673 жыл бұрын

    Caya I love your videos. I watch Gary's too. We are all a small family we should get along well. In Americas I've learned a saying: it is easier to ask for forgiveness than to ask for permission.

  • @keeganslattery
    @keeganslattery2 жыл бұрын

    Killer video, man! One of the best VC overviews I've seen. Are there any great calculators/models out there to help compare angel vs. VC investment scenarios?

  • @OgolordIntl
    @OgolordIntl3 жыл бұрын

    Great content as usual👍❤ Give us the boosted video link.

  • @JuanMartinez-ye8ug
    @JuanMartinez-ye8ug3 жыл бұрын

    Wow, my favorite video so far. Could you make one from the point of a founder? How much do you get to keep?

  • @shirleycher4706
    @shirleycher47062 жыл бұрын

    Thank you for the video! Would you kindly make a video from the start-up perspective?

  • @folrry
    @folrry3 жыл бұрын

    Thank you 🔥🔥🔥🔥🔥

  • @hendrikexcreable3354
    @hendrikexcreable33542 жыл бұрын

    thank you

  • @lucamuller1672
    @lucamuller16722 жыл бұрын

    Angel group vehicles are also very useful for saving on taxes :)

  • @BCay
    @BCay3 жыл бұрын

    Nice Caya good stuff

  • @laurentmisso6732
    @laurentmisso67323 жыл бұрын

    Nice! I'm looking for seed funding for my startup, just hit 10k revenue per month!

  • @ajthevillageidiot
    @ajthevillageidiot3 жыл бұрын

    Really sad to know that Garry asked you to delete that video :(.

  • @cayahere

    @cayahere

    3 жыл бұрын

    🤷🏽‍♂️

  • @adityaxxanand

    @adityaxxanand

    3 жыл бұрын

    @@cayahere don't bend your knee. I just lost all respect for him.

  • @j.r.4718

    @j.r.4718

    2 жыл бұрын

    I lost for respect for Garry after he deleted a comment of his after I commented (Product Hunt) asking him to talk to the founders of a startup that breached a vesting contract cheating me out of my vested shares after my one year cliff. He has no integrity, he also knew that I was the first developer hire. Didn’t bother to personally write me or anything.

  • @j.r.4718

    @j.r.4718

    2 жыл бұрын

    But if I sue he’ll have to :), he and the startup he’s invested in are lucky I’m broke now after resigning.

  • @tkdevlop
    @tkdevlop3 жыл бұрын

    Growth is everything is VC world

  • @naveedanjum9183
    @naveedanjum91832 жыл бұрын

    Please share your thoughts on Accelerators vs Venture Studios and their business model. Also for what do you think makes more sense for young entrepreneurs?

  • @sm-66abdullahshohan16
    @sm-66abdullahshohan163 жыл бұрын

    Hello sir A great admirer of your work... I watched each and every video of yours.. A great work... I had a question in mind and it would benefit me a lot if you replied back... Do you have any framework on how to do extensive research on any topic? Or could you tell me how to do extensive research... The key factors or points to look for while doing extensive research.. Thank you An enthusiastic person to learn😅😅

  • @darwin8653
    @darwin86532 жыл бұрын

    Great vid, watch it at 1.25 playback speed 👍

  • @deborahcharych4490
    @deborahcharych44908 ай бұрын

    Well now, this was quite insightful and thoughtful. Other than Pitchbook, (crazy expensive) is there a good way for life science founders to get info on potential investors eg who are the LPs, do they require priced round? Average percent of company required for say, an A round syndicate? In my prior startup we provided 70% of the company for a $45M A round. Note biotech😊.In my second go, would like to be smarter. Where can we find stats on pre money?

  • @alejandrofernandez9827
    @alejandrofernandez982710 ай бұрын

    buenisimo

  • @BEZZ9
    @BEZZ93 жыл бұрын

    Where's the link for the weekly startup news?

  • @md.abdullaalwailykhanchowd3974
    @md.abdullaalwailykhanchowd39743 жыл бұрын

    A perfect information to start your day.

  • @obiajulumbanefo3545
    @obiajulumbanefo3545 Жыл бұрын

    10:23 the evil eye 😂😂😂😂

  • @TheKirti149
    @TheKirti1493 жыл бұрын

    You missed one thing about being an angel/accredited investor. You could also take and pass an exam like series 7/series 65 to be an accredited investor.

  • @Lightningkuriboh

    @Lightningkuriboh

    3 жыл бұрын

    Shhhh that’s new and a secret

  • @sriramvenkateshakadebutjou8074
    @sriramvenkateshakadebutjou80743 жыл бұрын

    Gary was a early investor in boosted boards it seems

  • @sriramvenkateshakadebutjou8074

    @sriramvenkateshakadebutjou8074

    3 жыл бұрын

    I saw Gary tweeting about boosted boards in 2013

  • @sofiyaely
    @sofiyaely3 жыл бұрын

    Slidebean: Join us for a video, it'll be fun Gary: the glare at 10:23

  • @cayahere

    @cayahere

    3 жыл бұрын

    Word.

  • @william_8844
    @william_88442 жыл бұрын

    8:30 come to think of it...... Is it illegal to invest in random cos if you are not accredited angel, or if you earn less that the required

  • @fatpassportagain
    @fatpassportagain3 жыл бұрын

    wow!!

  • @whocares8025
    @whocares80252 жыл бұрын

    Hey Caya! We're wondering... is it possible to speak a little bit slower in your videos? You see... we're non-native English speakers here in Russia cannot understand sometimes what you're talking about... Especially, when it comes to numbers... If it is not acceptable, would you mind making the pauses between sentences a little bit longer? Much obliged!! Sincerely, Your fans from Russia working on a transformative market opportunity (that life-changing win).

  • @billaak417
    @billaak4173 жыл бұрын

    How about Fast Food Start Up? Is it feasible?

  • @heyerikan
    @heyerikan10 ай бұрын

    how is it not a high bar to be an accredited investor in the US?

  • @gautambanuru2266
    @gautambanuru22663 жыл бұрын

    the newsletter link does not work

  • @AbhinavKulshreshtha
    @AbhinavKulshreshtha3 жыл бұрын

    If my timeline works, I will ask caya to become my investor in 2023.

  • @cayahere

    @cayahere

    3 жыл бұрын

    If my timeline works, I’ll qualify as an accredited investor by 2023 😇

  • @thomas-sinkala
    @thomas-sinkala3 жыл бұрын

    Why tf does he want the Boosted video down?

  • @william_8844
    @william_88442 жыл бұрын

    Deep down I want to start a vc

  • @PolinomPolynets
    @PolinomPolynets3 жыл бұрын

    I think Telegram was funded innerly by it's CEO right? No investors involved... Am I wrong?

  • @benjaminronns

    @benjaminronns

    3 жыл бұрын

    Yeah. Pavel Durov the funded Telegram with his own money. He sold a social media company called VK and made a tonne of money. He used that to fund Telegram

  • @Mike-xw4gm
    @Mike-xw4gm3 жыл бұрын

    Can u make a 1 2 minute recap of this video when I saw that it was 21 mins I wrote this comment and went back to work.

  • @Norentis
    @Norentis2 жыл бұрын

    Weird question. If I would start a company to do only 1 job for 1 time and would get paid $10 mio. and there is NO shot to ever make money again with this company, a Stock offering or Convertible debt scenario would not work I would guess. What would one want to try to raise capital for that startup? Are there even any investors out there that would entertain such a thing? Even if the return is huge for them? Let's say $750,000 investment and a $10,000,000 return, with the off chance of the company not being able to deliver on deadline and make nothing? I ran into this a few times now from people that asked me and I am at a loss on what to say, so I keep telling them no one would invest.

  • @jiminfested
    @jiminfested3 жыл бұрын

    13:30, are you trying to give me nightmares? Because I think you succeeded

  • @slidebean

    @slidebean

    3 жыл бұрын

    Don't worry - we are all having nightmares with you 👻

  • @Septumsempra8818
    @Septumsempra88183 жыл бұрын

    Boosted?

  • @ChigozieMImachukwuOfficial
    @ChigozieMImachukwuOfficial3 жыл бұрын

    Nice clickbait bro. 2 out of 3 people I love to watch.

  • @weishenglau4220
    @weishenglau42203 жыл бұрын

    Isn't this just... a description of VC funds?

  • @ashtonal
    @ashtonal3 жыл бұрын

    Interesting picture of traditional VC. However, we do believe it’s on the verge to be outpaced by DeFi and tokenization if only the money printing wasn’t bbrrrrrrrrrring in the US and Europe. Just a matter of time; asymptotic moves are gonna happen sOOn. Stay tuned ;-)

  • @hova2781
    @hova27813 жыл бұрын

    🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥

  • @bjvu9460
    @bjvu94603 жыл бұрын

    he was working at YC so, isnt that YC returns and not his? I find it hard that investing 300000 will return a billion due to dilution or am i missing something... that means that YC should have returns of over a trillion

  • @sagarmaruthi
    @sagarmaruthi3 жыл бұрын

    🤩

  • @mustardroshi418
    @mustardroshi4183 жыл бұрын

    Why did he want boosted video down tho..

  • @StartupTaiwan
    @StartupTaiwan3 жыл бұрын

    The gambling bg is distracting, the old style simple bg was better imho.

  • @emileriksen2481
    @emileriksen24813 жыл бұрын

    Why is Garry Tan mad about the boosted video

  • @emmuoriginals5296
    @emmuoriginals52962 жыл бұрын

    Gary didn't refuse, he b*****d out lol.

  • @mfundomkhize2337
    @mfundomkhize23373 жыл бұрын

    KZread beef heating up

  • @ahamedjameel8480
    @ahamedjameel84802 жыл бұрын

    Boss

  • @rahulchakrabarty9083
    @rahulchakrabarty90832 жыл бұрын

    Where does my piggy bank will go? Mutual funds :P :D

  • @spidercat2841
    @spidercat28413 жыл бұрын

    Jesus christ I could not stop staring at those horrifying faces in the background

  • @slidebean

    @slidebean

    3 жыл бұрын

    Super creepy, right? 😨

  • @spidercat2841

    @spidercat2841

    3 жыл бұрын

    I love your channel btw :)

  • @JakeAllen3
    @JakeAllen33 жыл бұрын

    Damn I loved Garry Tan seems kind of petty on twitter though based on comments here. But who knows could’ve been a bad day

  • @ill4570
    @ill45702 жыл бұрын

    So a vc fund is practicality a hedge fund but for start ups 😂 basically the same fees and structure

  • @davidsonokafor2408
    @davidsonokafor24083 жыл бұрын

    Caya chipped in slidebean at 5:14 like we won't notice 😂😂

  • @cwtrain

    @cwtrain

    3 жыл бұрын

    He said it was a plug out loud. Pretty sure we were meant to notice.

  • @Suecotero84
    @Suecotero842 жыл бұрын

    Wait so Tan got burned on Booster so he wants you to delete your forensics video on it? Well that's not very professional.

  • @Lightningkuriboh
    @Lightningkuriboh3 жыл бұрын

    LMAO took me a second to realize y’all are wearing masks

  • @JakeAllen3
    @JakeAllen33 жыл бұрын

    Damn I loved Garry Tan seems kind of petty on twitter though based on comments here. But who knows could’ve been a bad day

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