Einar Vollset

72 million is still a lot of money, but it happens a lot more frequently than a billion dollars. Like we've done in discretion capital, we've done several deals this year that have been sort of in that range. And that's just us, you know, and like nobody ever reads about them.

72 million is still a lot of money, but it happens a lot more frequently than a billion dollars. Like we've done in discretion capital, we've done several deals this year that have been sort of in that range. And that's just us, you know, and like nobody ever reads about them.

Like we actually did, you know, like years ago now we did that iceberg, you know, the measuring the depth of the software iceberg title based on, you know, Patty Eleven's quote, an observation there around like most people don't know how much money exchanges hands about, you know, for these kinds of outcomes and how common the big ones are or the reasonably sized ones.

Like we actually did, you know, like years ago now we did that iceberg, you know, the measuring the depth of the software iceberg title based on, you know, Patty Eleven's quote, an observation there around like most people don't know how much money exchanges hands about, you know, for these kinds of outcomes and how common the big ones are or the reasonably sized ones.

So that's what it boils down to. Like basically what we're arguing is like, look, If you're going for that kind of enormous outcome, then yeah, it makes total sense. Raise it $25 million and capital will go for it. Like become OpenAI, become Airbnb.

So that's what it boils down to. Like basically what we're arguing is like, look, If you're going for that kind of enormous outcome, then yeah, it makes total sense. Raise it $25 million and capital will go for it. Like become OpenAI, become Airbnb.

But there's also this other class of startups where, you know, if you're B2B SaaS and as an investor, you can put money in that couple of million and then they sell for $50 to $100 million. That's as good. Like it doesn't matter to you. If you get 40x your money, what do you care? Whether 40x means $75 million as an exit or 40x means a billion dollars. It doesn't

But there's also this other class of startups where, you know, if you're B2B SaaS and as an investor, you can put money in that couple of million and then they sell for $50 to $100 million. That's as good. Like it doesn't matter to you. If you get 40x your money, what do you care? Whether 40x means $75 million as an exit or 40x means a billion dollars. It doesn't

I mean, other than bragging rights, it doesn't matter, right? It's just enterprise exit price.

I mean, other than bragging rights, it doesn't matter, right? It's just enterprise exit price.

And I think also like what some people, although I think awareness is raising a little bit, what some founders don't understand is like, look, there are trade-offs to this. Like, obviously, like if you can raise it a hundred million valuation, billion dollar valuation, there's really great things about that.

And I think also like what some people, although I think awareness is raising a little bit, what some founders don't understand is like, look, there are trade-offs to this. Like, obviously, like if you can raise it a hundred million valuation, billion dollar valuation, there's really great things about that.

But some of the bad things are there's a whole universe of outcomes that are not the doors closed for you. You know, like if you raise it $25 million, the chances that you're going to be able to or be allowed to sell for 50 is very low. In some cases, if you have extreme power and all this stuff and you didn't give away any rights, that's fine.

But some of the bad things are there's a whole universe of outcomes that are not the doors closed for you. You know, like if you raise it $25 million, the chances that you're going to be able to or be allowed to sell for 50 is very low. In some cases, if you have extreme power and all this stuff and you didn't give away any rights, that's fine.

But if you push valuations as high as possible, investors are going to put control provisions in there that sort of says, okay, look, the reason why we're giving you this high valuation is because you're saying you're gunning for this enormous outcome. So we're going to put some barriers in place that pushes you, that aligns everyone to that kind of outcome or nothing.

But if you push valuations as high as possible, investors are going to put control provisions in there that sort of says, okay, look, the reason why we're giving you this high valuation is because you're saying you're gunning for this enormous outcome. So we're going to put some barriers in place that pushes you, that aligns everyone to that kind of outcome or nothing.

Not get a high valuation and then sell for a reasonable amount. That door is very often closed.

Not get a high valuation and then sell for a reasonable amount. That door is very often closed.

A handful, but actually, just to change track a little bit, not as many as I thought. It's funny because we raised our second fund in 2021, and obviously 2021 was a good time in the markets. And at the time, I remember looking and I was like, oh, about 30% of the companies have raised money. And that's what I used to say, like about a third, about a third.

A handful, but actually, just to change track a little bit, not as many as I thought. It's funny because we raised our second fund in 2021, and obviously 2021 was a good time in the markets. And at the time, I remember looking and I was like, oh, about 30% of the companies have raised money. And that's what I used to say, like about a third, about a third.