Lack of Founder-Market Fit

Employee Led SPVs Post Mortem: Part 1

  • I have decided to stop further work on Employee Led SPVs due to

    • Lack of founder-market fit.

    • The potential for founders to disintermediate fund managers and syndicate leads.

    • Higher leverage alternative opportunities for employees to invest their time and social capital.

  • I'll cover the lack of founder market fit below and the other concerns in future posts.

    • Long feedback loop

      • I can measure the success of code and content in sometimes as early as a few seconds. However, judging startup investing performance could take 5-10 years which is too long of a feedback loop.

    • Temperament

      • Becoming a professional investor was a major life dream for me. I developed a unique thesis, productized it, and saw 7 figures of capital deployed through it. I now have enough context to say this career path is not suitable for my temperament. I enjoy problem-solving and implementation, not relationship management. Relationship management would be a major part of bringing employee-led SPVs mainstream.

    • Operating privately

      • All relationship building and deal structuring would have to happen privately. CEOs and employees consider all fundraising matters to be highly sensitive. I prefer to work in public mediums with total transparency.

    • Permissions

      • An employee, their CEO, LPs, etc., has to permission anything I do in any deal, which is not ideal for me. I instead prefer operating in permissionless contexts as much as possible.