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Turner Novak ๐ŸŒ๐Ÿงข
@TurnerNovak
investing @BananaCap_ podcasting @ThePeelPod (sign-up for emails below)
Joined April 2009
3.5K Following    214.2K Followers
Most surprising part of my conversation with @aydin was when he said @felicis likes to put more money in after a portfolio company has a bad quarter. "Sometimes founders wanna do crazy things. And the investors are like, 'That's batshit crazy.' Sometimes what they really want is one of the investors to say, 'You know what? That is batshit crazy. But you should absolutely do it. I trust you, and you will do great. And I will prove it. I will put even more money in the company.' There's been a number of situations, like n8n or Semgrep. The company's doing really well, and inevitably there is a little hiccup. As soon as the first hiccup happens, people start getting agitated. 'Oh my God, we missed this quarterly goal and this one stat.' We do something very unusual. We're like, 'Yes, you had a bad quarter. Maybe you had two bad quarters. But the main trajectory of the company is going to a really great place.' The numbers were off because we have a very small n. Every startup, when they're starting, there's not enough deals. There's not enough people. One thing is slightly off, and it derails the results. You have a deal that closes in July instead of June. But that's the point where the founder is really vulnerable. So we're like, 'We'll give you more money. We'll give you support. We do believe in you.' And the founder is like, 'Wow. This investor is not just telling me things. They're also willing to back it up.' They wanna put even more money in the company at a moment where things seemingly were not that great. That part is very unique to Felicis. If we exist 20 more years from now, one of the key reasons will be that we've done right by the founders. Without that, I don't think we even have a 1% chance of persisting through the next two to three decades."
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