The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch 20VC: Elad Gil on Startup Offense and Defence in a Recession, How The Venture Landscape Has Shifted & All Things Valuations, Secondaries and Layoffs
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May 26, 2020 
Elad Gil, a renowned angel investor with a portfolio including Stripe and Airbnb, shares his insights on navigating startups in challenging economic times. He discusses the shifting landscape of venture capital, offering advice on cash management and runway strategies for founders. Elad emphasizes the importance of understanding valuations and highlights the contrasting strategies of investors in the current climate. He also reflects on the future of M&A post-pandemic, while advocating for a rejuvenated governance approach in Silicon Valley.
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More Capital Sources
- More capital sources benefit founders, offering more funding options.
- Investors, however, prefer less competition, highlighting the differing perspectives within the ecosystem.
Valuation Sensitivity
- When determining valuation sensitivity, consider funding needs, desired buffer, and dilution.
- Prioritize fast, simple deals with favorable terms if dilution differences are minimal.
Deal Structures
- Aim for clean funding rounds with non-participating preferred and 1x liquidation preferences.
- Structures can be acceptable if tied to milestones or if necessary for a deal, but understand them thoroughly.
