The Learning Corner by Precursor
Welcome to the Learning Corner, a weekly Precursor Ventures podcast, where members of the Precursor team walk through their favorite articles and news snippets across the venture ecosystem.
Episode #63: Sequoia Breaks Portfolio Conflict Rules, Pre-Seed Is Dead?, FAANG to Startup Regret
This week we discuss Sequoia's groundbreaking decision to invest in Anthropic despite existing stakes in OpenAI and xAI, challenging traditional VC taboos around backing competitors. We explore why pre-seed fundraising has fundamentally changed, with most founders now needing $300K ARR just to get meetings. Finally, we examine a candid reflection from an ex-Amazon employee who regretted leaving FAANG for a startup, highlighting the mission-driven intensity required to succeed in early-stage companies.
Key Points
- "Not enough traction" is often used as an easy pass excuse by early-stage investors who aren't genuinely interested in a deal.
- Sequoia's investment in Anthropic, despite conflicts with existing stakes in OpenAI and XAI, highlights a shift in venture dynamics where large funds prioritize returns over potential conflicts.
- Startups require a level of dedication and alignment with the mission that goes beyond just being smart and eager, which can be a difficult adjustment for those transitioning from big tech companies.
Chapters
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Transcript
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