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Michael
+ Your AuthorsArchive @michaeltefula draft thoughts on finance, tech, climate, (+ wherever else the mind wanders.) team @my_tickr | volunteer @diversityvc | views my own Apr. 14, 2021 1 min read

0/ As @coinbase goes public today, here's a short story of how @fredwilson first met its CEO @brian_armstrong in 2012, which led to @usv investing in the company in 2013 👇🏾

1/ @paulg invited Fred for office hours at @ycombinator in 2012. Fred met 16 startups back-to-back in a gruelling 4 hr session. Coinbase was among the startups that pitched and even though it wasn't raising money, Fred expressed interest right away. He was the first VC to do so.

2/ Six months later Coinbase went out to raise a Series A, met a bunch of other VCs, and initially got just 1 term sheet (with very bad terms). The fundraising process was far from easy. However, USV were still keen and put in an offer to invest. Here's why Brian chose them.

3/ Bonus tip for VCs from Fred: don't do "exploding" term sheet offers. You're investing for the long term and it makes no sense optimising for a short-term value squeeze when you're about to enter a 5 to 10 year relationship with the company you're investing in.

4/ Full video here  https://youtu.be/EDTKalbrBfo 


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