If this is the case, why wouldn't startups take money from VCs that are hunting alpha? I would think those would offer better terms. It seems like Thomas is saying that a startup's real goal is a runway toward consistent future funding. Or is going the big VC route more advantageous besides better access to future capital (advice, visibility)?
If this is the case, why wouldn't startups take money from VCs that are hunting alpha? I would think those would offer better terms. It seems like Thomas is saying that a startup's real goal is a runway toward consistent future funding. Or is going the big VC route more advantageous besides better access to future capital (advice, visibility)?
I don't know how a startup trades off between valuation and staying power if the 2 are traded off.
I would say that trading against people who have alpha (vs dumb money) would require as you suggest a large benefit since you're giving up edge