7 ms·

False. KV led Square's Series A and is the largest institutional share holder in the company (by a large margin).

coleslawfail 13y ago
Heh, seriously? I'm sure the valuation he gave Jack has nothing at all to do with it. Jack didnt need Vinod, big difference. Square would be Square without Vinod.
- keithrabois 13y ago
  KV offered substantially less of a valuation than other firms to lead the Series A.
  - coleslawfail 13y ago
    And control provisions? Jack was never going to see Bad Vinod. And he was never going to give up enough equity/control to let Vinod's ego run wild.
    - keithrabois 13y ago
      KV asks for less control provisions than other comparable funds. Indeed, we rarely even require a Board seat. Most often, the founder persuades us to accept one.
      - coleslawfail 13y ago
        Or in the case of "experiments" KV insists on two seats and takes the option pool from founders at the seed stage. I get why you are presenting the rosiest picture, but at least be honest that Bad Vinod exists and is pernicious for the firm and many early founders.
        keithrabois 13y ago
        These "experiments" are normally companies that no other fund on the planet would finance, as they are extraordinarily risky. In those cases, KV does expect greater equity (due to risk and the fact that nobody else will support the company) than a standard seed or Series A. Would you prefer we just decline to fund them like every fund?
        coleslawfail 13y ago
        With how much liquity floats around today, there's no such thing as too risky. No, Vinod jumps in early exactly to maximize leverage and over the founders and other investors. Why not simply treat them like any other seed? Then leverage over time with pro rata rights? As an angel, did you ever require insane positioning? And angel investing, as you know, is pretty risky. Seriously, two seats, take a step back see that you are justifying a terrible position for founders right out if the box, most especially when they take the options pool from their shares as well. You talk like it's charity when it's robbery, and then of course Vinod's ego runs wild on them. I note here you keep failing to answer my questions. Bad Vinod is real and it's not just the experiments. With first time founders, the word is to be very careful with KV and many choose to avoid altogether. New founders, less connected in the Valley, are especially vulnerable.
        keithrabois 13y ago
        Completely inaccurate. Many of the companies literally cannot be financed by anyone, with the possible exception of Founders Fund. Moreover, it would be an extraordinary case where we would even ask for Board seats like that. In fact, we would more often then not prefer to avoid Board seats entirely. As a technical matter, you cannot increase your ownership % by investing via pro rata rights, just preserve it.
        coleslawfail 13y ago
        Keith, you are either getting false information from your partners or willfully misleading here. I prefer the former interpretation since I know for a fact this behavior exists at KV and specifically with Vinod leading the push. That's where the Bad Vinod reputation comes from and where people know to stay away.

Heh, seriously? I'm sure the valuation he gave Jack has nothing at all to do with it. Jack didnt need Vinod, big difference. Square would be Square without Vinod.

keithrabois 13y ago
KV offered substantially less of a valuation than other firms to lead the Series A.
- coleslawfail 13y ago
  And control provisions? Jack was never going to see Bad Vinod. And he was never going to give up enough equity/control to let Vinod's ego run wild.
  - keithrabois 13y ago
    KV asks for less control provisions than other comparable funds. Indeed, we rarely even require a Board seat. Most often, the founder persuades us to accept one.
    - coleslawfail 13y ago
      Or in the case of "experiments" KV insists on two seats and takes the option pool from founders at the seed stage. I get why you are presenting the rosiest picture, but at least be honest that Bad Vinod exists and is pernicious for the firm and many early founders.
      - keithrabois 13y ago
        These "experiments" are normally companies that no other fund on the planet would finance, as they are extraordinarily risky. In those cases, KV does expect greater equity (due to risk and the fact that nobody else will support the company) than a standard seed or Series A. Would you prefer we just decline to fund them like every fund?
        coleslawfail 13y ago
        With how much liquity floats around today, there's no such thing as too risky. No, Vinod jumps in early exactly to maximize leverage and over the founders and other investors. Why not simply treat them like any other seed? Then leverage over time with pro rata rights? As an angel, did you ever require insane positioning? And angel investing, as you know, is pretty risky. Seriously, two seats, take a step back see that you are justifying a terrible position for founders right out if the box, most especially when they take the options pool from their shares as well. You talk like it's charity when it's robbery, and then of course Vinod's ego runs wild on them. I note here you keep failing to answer my questions. Bad Vinod is real and it's not just the experiments. With first time founders, the word is to be very careful with KV and many choose to avoid altogether. New founders, less connected in the Valley, are especially vulnerable.
        keithrabois 13y ago
        Completely inaccurate. Many of the companies literally cannot be financed by anyone, with the possible exception of Founders Fund. Moreover, it would be an extraordinary case where we would even ask for Board seats like that. In fact, we would more often then not prefer to avoid Board seats entirely. As a technical matter, you cannot increase your ownership % by investing via pro rata rights, just preserve it.
        coleslawfail 13y ago
        Keith, you are either getting false information from your partners or willfully misleading here. I prefer the former interpretation since I know for a fact this behavior exists at KV and specifically with Vinod leading the push. That's where the Bad Vinod reputation comes from and where people know to stay away.