Thought Leadership Threads
Frank Rotman
@fintechjunkie
Board meetings can be incredibly awkward when the CEO and one or more of the company’s Board members don’t see eye to eye.
When I see this happening, I frequently play the role of “peacekeeper” and start by reminding both parties of a well-known parable:
Frank Rotman
@fintechjunkieThe startup ecosystem is finally seeing good companies come to market again.
But after a year of focusing on costs and runway, some startups aren’t exciting anymore. Many startups that try to raise will hear: “We want more proof!”
Here’s what you need to know about proof:🧵👇
Frank Rotman
@fintechjunkieAt a startup, stock options can be lucrative depending on the success of the company.
With valuations down, Founders are asking to reprice historical options.
Here’s what it means, why it’s important and when it’s appropriate.
Frank Rotman
@fintechjunkieOver 100 startups in our portfolio have refactored their operating plans in the past year.
Some have become profitable with as little as $5MM of revenue while others have found ways to do more with less.
Can you guess the four most common levers they pulled?🧵👇
Frank Rotman
@fintechjunkieEvery business has a core function. Some businesses make athletic shoes while others make wide screen televisions.
What’s become clear over the past week is that many people don’t understand what Banks actually do.
A simplified explanation if you're interested:🧵👇
Yusuf Ozdalga
@yusuozdalgaThere is lots of anxiety in the start-up community after SVB became the 2nd largest bank failure in US history.
This is understandable. Lining up action plans with back up options is key.
Undertake all planning and communication in a calm manner. This is in everybody’s interest
Frank Rotman
@fintechjunkieWhat the heck do you do if a Founder is fully vested and asks for an options refresh?
It happens all the time but with valuations down the answer isn’t simple.
A few thoughts on a third-rail topic: 🧵👇
Frank Rotman
@fintechjunkieUnderfunding a startup is risky because downstream capital might not be there if the startup hasn’t made material progress.
It’s a terrible idea to fund a plan that only gets a startup 80% of the way to Mars!
Here's why:🧵👇
Frank Rotman
@fintechjunkieMany companies went through a major layoff in 2022. Many more will reduce their staff in 2023.
When the dust settles, businesses will be leaner but challenges will still remain.
Here's a valuable checklist for survivors:🧵👇