words, lines 1 0 0 -15 hidden 0% 0 top 80% 1 0 .75 .01 .05 power4.out 100% power4.out 1 1 none .5 1 1 .5

The Structure Of Investing

"𝗬𝗼𝘂 𝘀𝘁𝗮𝗿𝘁 𝗮𝘁 𝘁𝗵𝗲 𝗯𝗼𝘁𝘁𝗼𝗺 𝘄𝗶𝘁𝗵 𝘁𝗵𝗲 𝗶𝗻𝘁𝗲𝗿𝗻𝘀, 𝗿𝗶𝗴𝗵𝘁? 𝗔𝗻𝗱 𝘁𝗵𝗲 𝗶𝗻𝘁𝗲𝗿𝗻𝘀 𝗮𝗿𝗲 𝘁𝗿𝘆𝗶𝗻𝗴 𝘁𝗼 𝗳𝗶𝗴𝘂𝗿𝗲 𝗼𝘂𝘁, 𝗶𝘀 𝘁𝗵𝗶𝘀 𝗮 𝗱𝗲𝗮𝗹? 𝗔𝗻𝗱 𝘁𝗵𝗲𝘆 𝗰𝗮𝗻 𝗼𝗻𝗹𝘆 𝘀𝗮𝘆 𝗻𝗼, 𝘁𝗵𝗲𝘆 𝗰𝗮𝗻'𝘁 𝘀𝗮𝘆 𝘆𝗲𝘀, 𝗿𝗶𝗴𝗵𝘁? 𝗧𝗵𝗲𝘆 𝗰𝗮𝗻 𝗷𝘂𝘀𝘁 𝘀𝗮𝘆 𝗶𝘁 𝗹𝗼𝗼𝗸𝘀 𝗶𝗻𝘁𝗲𝗿𝗲𝘀𝘁𝗶𝗻𝗴. 𝗜𝗳 𝘆𝗼𝘂 𝗴𝗲𝘁 𝗽𝗮𝘀𝘁 𝘁𝗵𝗲 𝗶𝗻𝘁𝗲𝗿𝗻𝘀, 𝗮𝗻𝗱 𝘀𝗼 𝘁𝗵𝗲 𝗶𝗻𝘁𝗲𝗿𝗻𝘀 𝗮𝗴𝗮𝗶𝗻, 𝘁𝗿𝘆 𝗮𝗻𝗱 𝗵𝗲𝗹𝗽 𝘆𝗼𝘂, "𝗛𝗲𝘆, 𝗼𝘂𝗿 𝗰𝗼𝗺𝗽𝗮𝗻𝘆 𝘄𝗮𝗻𝘁𝘀 𝘁𝗼 𝘂𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱 𝗿𝗲𝘃𝗲𝗻𝘂𝗲 𝗯𝘆 𝗰𝗵𝗮𝗻𝗻𝗲𝗹, 𝗮𝗻𝗱 𝗮 𝗹𝗶𝘁𝘁𝗹𝗲 𝗯𝗶𝘁 𝗺𝗼𝗿𝗲 𝗮𝗯𝗼𝘂𝘁 𝗺𝗼𝗿𝗲 𝗺𝗮𝗿𝗸𝗲𝘁 𝘀𝗶𝘇𝗲."

So they'll help you do that. And then they'll push it up to junior administrators or junior associates. And they're tasked with collecting the actual info that these guys over here in the committee need to make a decision. And the big realization at this point is you are not going to be at this committee meeting when they decide whether to give you the money or the contract. This is where you want to be, this is where you want your deck to be, and this is where you wish you were going to be. But when this actual decision happens, you are not going to be there. And the reason, so you started somewhere in here, like at the executive level and you went, whoo, right? Who's experienced this? You got a good intro to a firm and they go, "Yeah, they really love this. Work with Prajeesh and Jim. And they're going to try and figure out what the f*** is going on here? I see you're nodding. You've experienced it.

Has anybody not experienced this? You haven't? Okay. But does it psychologically make sense? Because these guys want to make a million dollars a year, right? And ideally make $10 million on some unicorn-style things, right? If something's confusing, that's why they have all these guys and girls and people sitting around to help. You know, eventually, it'll get to like the executive level or the senior associate.𝗧𝗵𝗲𝘀𝗲 𝗴𝘂𝘆𝘀 𝗶𝗱𝗲𝗻𝘁𝗶𝗳𝘆 𝗮𝗹𝗹 𝘁𝗵𝗲 𝗽𝗿𝗼𝗯𝗹𝗲𝗺𝘀 𝘁𝗵𝗮𝘁 𝘄𝗲'𝗿𝗲 𝗴𝗼𝗶𝗻𝗴 𝘁𝗼 𝘁𝗿𝘆 𝗮𝗻𝗱 𝗳𝗶𝘅 𝗵𝗲𝗿𝗲 𝘁𝗼𝗱𝗮𝘆.

#venturecapital #startups #pitchanything

Episode Transcript

The big realization at this point is you are not going to be at this committee meeting when they decide whether to give you the money or the contract, you start at the bottom with the interns, right. And the interns are trying to figure out, is this a deal? And they can't. They can only say, no, they can't say yes.

Right. They can just say, If you get past the interns. And so they interns again, you know, try and help you. Hey, our company wants to understand revenue by channel and a little bit more about market size. So they'll help you do that. Uh, and then they'll push it up to a junior administrators or junior associates, and they're tasked with collecting actual info.

That these guys over here in the committee need to make a decision. And the big realization at this point is you are not going to be at this committee. When they decide whether to give you the money for the contract, this is where you want to be. This is where you want your deck to be. This is where you wish you're going to be.

But when this actual decision happens, you're not going to be there. And the reason you're. So you started somewhere in here, like at the executive level and you were like, who's experienced this. You got a good intro to affirm. Um, yeah, they really love this work with per geesh in gym. And they're going to try and figure out what's going on here.

I see you're nodding. You've experienced it. Who does anybody not experienced this? You haven't okay. But does it psychologically makes sense because these guys want to make a million dollars a year right there and ideally make $10 million on some. Style things, right. If something's confusing, that's why they have all these guys and girls and people sitting around the house.

So, um, you know, eventually the executive level for the senior associate. These guys identify all the problems that we're going to try and fix here today. Then these guys help fix your problems. Then this guy comes in, who's fairly senior and he's basically going all these people thought it was a deal, but I know what really goes on in this firm.

Is it still a deal, even though my own people have fixed it. And then if he thinks it's a deal, then guess what he does with your pitch? He's like, yeah, but this is a bunch of. Anyway, now I have to create a pitch that matches what the committee wants to say.

Uh, do that again. So this guy's job then is to write it up in the format that the committee can look at it for 15 minutes and make a decision on it.

The structure of angel investing, venture investing, private equity, investing bank missing crazy rich guys are a little bit different, but that's, we can talk about how those guys fund.