#Lakersin6

I should have been a professional sports better. The only time I really lost was betting against Brady. Which is a cardinal sin, if you know anything about sports betting. I bring this up because as I watched Golden state lose to Lebron and the Lakers I realize how much money I was going to have to collect from my friends who didn’t read the signs. (As of this writing not phone calls have been accepted, no texts have been responded to, and no DM have been answered). 

Well, what does this have to do with venture capital you may ask? Well, for some reason people tend to bet out of an emotional response than actual numbers. In venture we pride ourselves on measuring real traction, the diversity, background, and skillset of the team, the TAM , SOM and SAM, product market fit, the current need in the market, a bit of financial analysis, and if we can add real value. For some reason nostalgia made some believe Chef Curry had a magic wand, and not a spatula to beat 38 yr old Lebron James who hadn’t scored post 30 in the playoffs, and a mismatched AD who has been inconsistent offensively but consistent defensivley. Yes, they are the returning champions, but does that mean they can pull rabbits out of a hat? Yes, some founders have raised considerable amounts of money and even some traction but what is the response from customer and clients? What are their morals? Are they making good calls or getting ejecting from games like Draymond in crucial moments for foul play? Have they over paid suppliers, vendors, and inefficient employees when it really counts like Jordan Poole? Have they timed the market correctly or throwing up Hail Mary’s with seconds left just because it worked in the past? Are we really looking under the hood? Iguodala is hurt, Andrew Wiggins just got off injury so his legs are fresh but not in playoff shape. Is the founder blaming the economy like Steve Kerr did accusing The Lakers of flop tactics? Can they pivot and adjust? I know it was a problem when they lost game one at home.

The Lakers set a tone. If a founder can’t drum up business with local customers how will her ever be a 10x exit. Was it smoke and mirrors? Of course not. GS is the best team of our generation, just not THIS year. We’ll throw them in Affinity, and keep an eye out for them. We’ll even help intro them to some interested parties and monitor. But for now with high interest rates and uncertainty only the safest bets you can make in VC, if there is a such thing. Stick to your fundamentals grasshoppers, this isn’t 2021. And to my friends who owe me for betting on the wrong horse…. Pay-up, or I’ll have to call Sallie Mae on you. And you know she doesn’t miss.