Nov 21, 2022

- Advertisement - Semil Shah is the founder of Haystack, one of the leading pre-seed and seed firms of the last decade. Semill’s portfolio includes DoorDash ($DASH), Instacart, HashiCorp ($HCP), Opendoor ($OPEN), Figma (acquired by Adobe), Carta and many other standout companies. Cemil’s first fund is surprisingly marked up between 30 and 40x the fund. - Advertisement - 1.) Works of Semil Shah: - Advertisement - From whom is Cemil running? Where is he running? What does Cemil know now that he wishes he had known when entering the venture? What is Cemil’s biggest advice to managers raising their first funding now? 2.) Fund Sizing: Growing Vs Being Disciplined: Question from Hunter Walk: How does Semill determine the right size of fund to raise with each fund Question from Satya Patel: Why have you resisted increasing the AUM? , What are the benefits and drawbacks? What investment mistakes has Cemil made over the past 3 years that he wishes he hadn’t? 3.) The Secret to Fundraising for a Fund: What is Cemil’s biggest advice to budding managers on finding a new LP? what works? What materials should managers have with a new fundraiser? deck? Dataroom? What are the most common mistakes VCs make when pitching their funds to LPs? How does Semill follow-up with a potential LP after the call? what works? What is not? How does Cemil suggest creating a sense of urgency for LPs to commit to a fund? How does Cemil feel about offering preferential terms to persuade LP to close in the first place? 4.) Current Scenario: For Vice Chancellors: How will the current scenario affect the growth potential of budding managers? What advice would Cemil give them? pick up small? As Kyle Harrison recently said on the show, “discrimination will kill 80% of venture firms, especially so-and-so”. Does Cemil agree? Who’s ready to fight? Who is ready to thrive in this environment? For LP: What does Cemil think is the biggest mistake LP has made in the past 2-3 years? How will they react to this market cycle? If Cemil was handed an endowment fund, how would he allocate it today? Does Semil agree, we will see a debasement of enterprise returns to PE-like multiples? Why? For Founders: How does Cemil advise founders today when everyone says they are investing but very few are actually investing? How does Cemil advise founders to think about valuation inflection points in relation to raising capital? Items mentioned in today’s episode: Cemil’s favorite article: Master of Play Cemil’s Most Recent Investment: Provide Security