Venture capital has historically been overfunded, which creates a competitive environment where founders often face multiple venture capitalists vying for their attention.

A common misconception among founders is that raising money will magically solve all their problems. They may believe that their investors will save them from failure, which leads to a lack of critical thinking and preparation for ongoing challenges.

In venture capital, the leaders of firms often push for taking more risks, as the potential for high returns outweighs the risks of failure.

It's important for founders to understand that the perception of needing to grow rapidly can lead to poor decision-making, such as overspending or neglecting financial health.

Raising money too early can force you into a rush to pivot, which may lead to poor decisions; it's better to wait until your idea is working.

Fear-based decision-making can lead founders to fundraise before their product is ready, especially if they believe their product is bad and fear failure.

The relationship between venture firms and founders is crucial; deep trust is built early on, and it's challenging to establish that trust later in the company's lifecycle.

The relationship between venture firms and founders is crucial; deep trust is built early on, and it's challenging to establish that trust later in the company's lifecycle.

Investors know that founders want high valuations and often leverage this by offering a desired valuation while asking for unfavorable terms.