Fred Wilson Quotes
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When I see people laughing at ideas and companies we have backed, I smile. It means we are going to make a lot of money on that investment.
My venture investing career has three phases, all roughly 6-8 years long. The first, at Euclid, was software to Internet. The second, at Flatiron, was Internet to bubble. And the third, at USV, has been web 2 to mobile. I have always used a new firm to denote a new investment phase for me. Throw away the old. Start with the new.
The venture business is a bit of an apprenticeship business, so the firm I worked for didn't let me make an investment until I was 30. That was probably a very smart thing.
One of the great things about young entrepreneurs is that they don't know that something can't be done. So they try something that's so audacious and usually end up pulling it off.
I'm a free speech bigot. I don't like censorship; I just don't think it's a good thing.
Twitter wasn't planned. It just happened.
If you have a native monetization system where the atomic unit of content is the ad unit, that scales down all the way to a small screen experience. That's why Twitter is performing so well on mobile.
It's upsetting to me that you have to be a millionaire to invest in your friend's start-up.
The more entrepreneurs in the world that are getting their ideas financed, the more great companies there are going to be that we can all invest in.
To see things differently requires you to be wired a little differently.
I think 'crazy' is a compliment. I think you make money with people who are crazy.
Start-ups should be hunch-driven early on and data-driven as they scale.
There is a difference between hiring a CEO and turning over control of the business.
The companies that do the best job on managing a user's privacy will be the companies that ultimately are the most successful.
So many folks in the venture capital business are sheep that just want to follow the herd. They are momentum investors purchasing highly illiquid investments. That is a recipe for disaster.
Venture capitalists are professional money managers. We are provided capital to invest as long as we can return it to our investors with a strong return in a reasonable amount of time. A strong return is three times cash on cash. A reasonable amount of time is ten years max.
Internet and mobile product development cycles are measured in months, not years. And the capital required to get a product built and into the market is less than $1 million. And the returns, when things work out, can be enormous.
We need new medical approaches to preventing and/or curing disease. We need new scientific approaches to generating, storing, and being more efficient with energy. Maybe we need more space exploration. Maybe we need more undersea exploration.
I believe the mobile OS market will play out very similarly to Windows and Macintosh, with Android in the role of Windows. And so, if you want to be in front of the largest number of users, you need to be on Android.
Facebook is not an unstoppable juggernaut. There are a lot of other things people can do on the web.
Customers are a great way to finance a business for many reasons. First, customer financing is typically non dilutive. They want something from you other than equity in your business. Customers also help you fit your product to the market. And customers will help debug and improve the quality of the product.
The most common way customer financing is done is you sell the customer on the product before you've built it or before you've finished it. The customer puts up the money to build the product or finish the product and becomes your first customer. Usually the customer simply wants the product and nothing more.
It takes great salesmanship to convince a customer to buy something from you that isn't built or isn't finished.
Equity capital is expensive. Every time you do a raise, you dilute.
Facebook, Twitter, and Tumblr are all 'User First, Brands Second' services. The brands are all over these services now. But for the most part, these services didn't do much to bring them. The engaged users did.
There are so many startups out there raising money. I don't think this is a bad thing. It's a good thing. Entrepreneurship is in vogue. Innovators are innovating. Makers are making.
Being an entrepreneur is hard. Having supportive and caring investors helps.
Skyping with your spouse works well enough, but apparently it is hard to get the kids to hang out on Skype for long.
When my dad was in Vietnam, we lost a parent for a year. Thank God we didn't lose a parent for good.
Not only do you have to put yourself in harms way in service of your country, you have to leave your families at home. It is a great sacrifice.
Startups are rapidly changing systems. If you use an annual review cycle, you aren't getting feedback at the same pace that you need to adapt and change the business.
Building product is not about having a large team to manage. It is about having a small team with the right people on it.
Investing in management means building communication systems, business processes, feedback, and routines that let you scale the business and team as efficiently as possible.
If you are successful, you will be cloned. That's life. In fact, it's a sign that you've made it when clones of your website, mobile app, and business start cropping up.
Venture capital is about capturing the value between the startup phase and the public company phase.
Many artists stick to making and hire a manager to focus on their business. Artists that build websites and mobile apps can do that, too.
The entire world is now a rival to Silicon Valley. No country, state, region, nor city has a lock on innovation in technology anymore.
Given New York City's cultural diversity, it has always attracted creative people.
Games are the most social of all things on the web.
Foursquare's adoption of a game dynamic when it launched is a particularly clever implementation of a social hook.
Marketing is for companies who have sucky products.
Board meetings should not be for the benefit of the board. They should be for the benefit of the CEO and the senior team.
Politics and government have been a terrible place to invest; education has been a terrible place to invest, but that is because the entrenched interests make it a terrible place to invest. The way you invest in those sectors is you go against the entrenched interests; you try and disrupt the entrenched interests, not to service them.
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