20VC Why Founders Should Take as Many VC Meetings as Possible, Should Founders Meet Associates, How to Get Intros to the Best VCs, How To Extract the Most Value From Your Investors, Why Post IPO Operators Are the Best Angels with Sam Corcos @ Levels

In a candid conversation on 20 VC, host Harry Stebbings and Levels CEO Sam Corcos discuss the nuances of startup fundraising, investor relations, and personal development. Corcos emphasizes the importance of casting a wide net during fundraising, treating it as a prophet's mission to connect with like-minded investors, rather than converting skeptics. He shares insights on optimizing investor value, advocating for proactive and specific requests, and the significance of setting clear expectations early in co-founder relationships. The dialogue also delves into Corcos' personal strategies for intentional living, from maintaining a one-pager of relationship non-negotiables to the benefits of immediate conflict resolution with co-founders. Additionally, Corcos touches on the challenges of balancing work presence with personal life, particularly as he anticipates changes that parenthood may bring.

• When fundraising, you should see yourself as a prophet with a vision, seeking people who are already convinced and ready to support you.
• A common error is treating investor contacts too preciously, when in fact, it's beneficial to take many meetings and pitches.
• Analysis revealed that the most ROI-positive investors often were early employees from post-IPO companies.

"When you're fundraising, you're a profit, not a missionary. You have the vision and you're trying to get people who already get it and are already bought in."

This quote emphasizes the importance of having a clear vision and seeking out investors who are already inclined to support your idea rather than trying to convert skeptics.

• Sam Corcos aspired to be a scientist, intrigued by biology and oncology.
• His parents, being Jewish, had the default expectation of him becoming a doctor or lawyer.

"My first real memory was I wanted to be a scientist. I was fascinated by biology and oncology, so I think it was a research scientist."

Sam Corcos reflects on his childhood ambition to be a scientist, indicating an early interest in the field of biology and oncology.

• Sam Corcos's lifestyle, characterized by not having a permanent home base, taught him that things generally work out and the importance of spontaneity.
• He believes planning is often driven by the discomfort of ambiguity and that embracing spontaneity can lead to unexpected and enriching experiences.
• Corcos recounts an anecdote where his spontaneous nature allowed him to find accommodation through a chance encounter, reinforcing his belief in the universe conspiring in his favor.

"I'm convinced that the universe is conspiring in my favor. These things just happen all the time."

Sam Corcos expresses his belief that positive outcomes will naturally occur, which has been reinforced by his personal experiences of serendipity.

• Corcos has always been risk-tolerant and finds that perceived risks are often less dangerous than commonly thought.
• He discusses the misconception of risks like hitchhiking and the distortion of risk perception by the media.
• Corcos believes that as companies grow, the fear of failure can paradoxically increase despite having more resources to take risks.

"I think I've always been a fairly risk tolerant person, and over time, as I've realized, how many things feel risky or appear risky on paper are actually not as risky as people think they are."

This quote reveals Sam Corcos's approach to risk, which is grounded in the understanding that many activities considered risky are not as dangerous as they are perceived to be.

• Corcos views luck as a combination of preparation and opportunity, suggesting that one can create their own luck to some extent.
• He acknowledges the role of probability in luck but stresses the importance of being prepared to seize opportunities.

"Luck is when preparation meets opportunity."

Sam Corcos conveys the idea that luck is not purely chance but involves being ready and able to capitalize on opportunities that arise.

• Corcos reflects on his experience as a technical co-founder and the importance of having confidence in one's own opinions.
• He emphasizes the value of ownership and the need to fully support decisions once they are made, even if there was initial disagreement.
• Corcos advises that if one cannot commit to a company's direction, it may be better to leave.

"If you cannot get behind the idea and you can't get behind the path forward, you should probably leave the company."

This quote advises that alignment with the company's direction is crucial, and if one cannot support it, it may be necessary to part ways with the organization.

• Corcos discusses the challenge of moving from a role with clear feedback loops to one where impact is less direct and tangible.
• He notes the difficulty in not having specific work products to point to as a CEO.
• Corcos also mentions the importance of celebrating team wins for morale and motivation.

"When you're the CEO, you have a 1% impact on everything, but you have almost nothing that you can actually point to as your own work product."

Sam Corcos reflects on the unique challenges of being a CEO, where contributions are more diffuse and less immediately visible compared to other roles.

• Levels operates with high transparency, sharing investor updates, team meetings, and performance data within the company.
• Corcos believes that titles are a form of compensation and has thus minimized their use within Levels.
• He acknowledges that transparency requires a high level of trust and vulnerability among team members.

"Titles are a form of compensation, and we share basically everything, including all of our one on ones."

The quote highlights the philosophy at Levels of treating titles as part of compensation and maintaining a culture of openness and transparency.## Team Building and Trust

• The effectiveness of a team largely depends on the level of trust established within it.
• High-trust teams support each other and rally to help struggling members.
• Low-trust teams may experience politicking and backstabbing.
• Transparency about individual performance can foster trust and support in a team.
• People often do not know who the low performers are unless they work closely with them.
• Revealing performance issues can lead to unexpected support rather than alienation.

"If you have built a team with very high trust... people support each other." "The people who work directly with them, maybe like the two or three people who are closest to them know, but everyone else at the company, if they end up leaving, it's a complete mystery why they left."

These quotes stress the importance of trust in a team's dynamics and how transparency can help maintain a supportive environment, as well as the common lack of awareness about low performers within a larger organization.

• The keeper test is a heuristic from Netflix to evaluate team members.
• It involves a thought experiment where a manager imagines how they would feel if a team member decided to leave.
• Feeling relief or excitement about a team member's departure is a bad sign.
• Directly informing team members about their keeper test results can lead to constructive outcomes.

"Imagine you have somebody named Mike on your team... how do you feel right now?" "I did the keeper test exercise right now. You do not pass the keeper test."

The first quote outlines the keeper test thought experiment, while the second shows how Sam Corcos directly communicated the results to a team member, emphasizing the importance of honest feedback in team management.

• As companies grow, the challenge of maintaining high-quality talent becomes more complex.
• The talent bar can decrease as the need for roles becomes more generalized.
• Early-stage companies may need to compromise on talent due to limited options.
• The keeper test remains valuable even at larger companies like Netflix.

"In the very early days, sometimes you just hire the best person that you can get because you don't have a lot of choices." "At some scale, you cannot only have A players... The definition of an A player, by definition, is they're rarer."

These quotes address the difficulties of scaling a company while retaining top talent and how the hiring strategy evolves as a company grows.

• Trust can be regained in teams, but it is not easy.
• Transparency cycles can help rebuild trust.
• Sharing information about compensation and individual performance can reduce distrust.
• Companies have the advantage of choosing who is part of their team.

"The answer is yes. Is it likely no?" "It created a lot of distrust of our team and our culture by not being transparent about it."

Sam Corcos explains the possibility of rebuilding trust and how increased transparency helped overcome distrust within his organization.

• Building a "trust bank" with credibility allows for more transparent fundraising.
• Selective information sharing can lead to distrust among team members.
• Sharing the financial state of the company can enable team contributions to fundraising efforts.
• Positive outcomes are more likely when the team is composed of individuals who want what's best for the company.

"If you've built up enough social capital internally... then it's totally fine." "People should understand what's going on because people can contribute to these things."

Sam Corcos discusses how a strong internal trust foundation allows for open discussions about fundraising and the benefits of having an informed team that can contribute to the company's financial strategies.

• A broad approach to fundraising can be beneficial.
• Founders should not be afraid to engage with investors early on.
• Feedback from investors is valuable for understanding market dynamics.
• Building relationships with investors over time can lead to successful fundraising.

"You have more than one shot on goal." "You will learn from people who have way more exposure to your market category than you do."

Sam Corcos advises founders to take advantage of multiple opportunities to interact with investors and to learn from their extensive market knowledge.

• Knowing what you need from investors is crucial.
• Founders should proactively engage with investors to extract value.
• Specific and targeted requests to investors have higher conversion rates.
• Sharing a list of needs with investors can lead to valuable contributions.

"You need to have a list of things that you and your team need help with." "I think we've had something like more than 3000 specific investor asks that I've sent people."

Sam Corcos emphasizes the importance of clear communication with investors about a company's needs and the success he has had with targeted requests.## Leveraging Mutual Connections for Investment

• Utilize mutual connections to get closer to potential investors.
• Perform due diligence to identify the best contacts for investment outreach.
• The more effort you put into the process, the more likely you are to receive assistance.

"And you can say, we think these five people would be the best contact and you're one degree separated from them. Could you reach out to any of them and help us get one step closer?"

This quote emphasizes the strategy of using mutual connections to facilitate introductions to potential investors, suggesting a proactive approach to networking.

• It's crucial to establish expectations with investors from the beginning.
• Not all investors will provide the same level of engagement or value.
• Clearly communicate what is expected from investors to ensure alignment.

"If it is really an expectation of you that your investors will be engaged and respond to your emails and participate to some degree, you should set that as a clear expectation."

This quote highlights the importance of setting clear expectations with investors regarding their level of engagement and contribution to the company.

• Differentiate between the value provided by VCs, operators, and angels.
• Recognize the unique contributions of firms like Andreessen Horowitz (A16Z) with their service models.
• Utilize the resources and expertise offered by investor firms to gain maximum value.

"The only real institutional capital that we have. We work with a 16 z. They have this whole services model that's been incredibly high leverage."

Sam Corcos acknowledges the significant value addition from A16Z's service model, indicating the firm's effectiveness in supporting their portfolio companies.

• Address the skepticism surrounding value add teams in venture capital.
• Understand that not all firms excel at delivering promised value to startups.
• Recognize the exceptional performance of certain teams, like A16Z, in providing services.

"Most firms, they understand when they talk to founders, they say that it's the thing that they want, but they're not very good at delivering on the value."

Sam Corcos explains that while many VC firms claim to provide value-adding services, not all are adept at actually delivering on those promises.

• Investor engagement can significantly influence the success of fundraising efforts.
• The best investor meetings are with those who already understand and believe in the company's vision.
• Sharing materials in advance can filter out less interested investors and save time.

"The best meetings are the ones where the, and this is an interesting thing, is we share a lot of material in advance of these investor meetings."

Sam Corcos discusses how sharing detailed information before meetings helps identify genuinely interested investors, leading to more productive discussions.

• Associates and principals in VC firms may not always effectively communicate with partners.
• The functions of associates vary between research and analysis or outbound prospecting.
• Understand the dynamics within a VC firm to effectively navigate investment discussions.

"I don't know even what role they play within these firms."

Sam Corcos expresses uncertainty about the impact of associates and principals in the decision-making process of VC firms.

• Minimum check sizes are less relevant when building a network of angel investors and operators.
• Early employees at post-IPO companies can be valuable investors due to their connections and willingness to help.

"If your goal is to build an army of angels and operators, the minimum check size is much less relevant."

Sam Corcos suggests that when targeting a broad network of supportive investors, minimum investment amounts should not be a barrier.

• The effectiveness of investor meetings can be enhanced by demonstrations that clearly show the product's value.
• Tailoring the pitch and experimenting with different approaches can lead to successful fundraising.
• The theatrical aspect of pitching can be crucial, especially when conveying a big vision.

"This was the first pitch where Josh, my co-founder, at the start of the meeting, drank a green juice called health drink on the cart."

Sam Corcos shares an anecdote about a pitch where a live demonstration effectively communicated the product's impact, exemplifying the power of a well-executed presentation.

• Some investors may not deliver the expected value despite initial promises.
• It's important to set clear expectations with investors and track their engagement.
• Conducting due diligence on investors can help assess their potential value contribution.

"We have several people on the list that I've sent them 17 requests and they've converted on zero of them."

Sam Corcos discusses the reality that some investors may not fulfill their commitments, highlighting the importance of managing expectations and tracking investor engagement.

• High performance is about setting and achieving ambitious goals.
• It involves taking calculated risks and learning from both successes and failures.
• High performance is not just about being right but also about choosing the right goals to pursue.

"Performance in many ways is just winning. It's on being right a lot."

Sam Corcos defines high performance as the ability to consistently achieve objectives and make correct decisions.

• Conduct a calendar audit to understand how time is currently spent.
• Use the calendar as a primary to-do list to set realistic expectations for task completion.
• Create buffer time in the schedule to accommodate unexpected changes or emergencies.

"Just keeping track of how you spend your time is really important."

Sam Corcos emphasizes the importance of being aware of time allocation as a foundational step in improving productivity and time management.## Time Management and Parenting

• Individuals with children often become more scheduled due to limited time.
• The necessity to be intentional with time management is heightened with the responsibilities of parenting.

"I know who has had children ends up becoming more scheduled, and they end up taking scheduling much more seriously because their time is so much more limited and they have to be very, very intentional."

• This quote highlights the impact of parenting on scheduling and the increased need for intentional time management when one has children.

• Sam Corcos expresses nervousness about staying present with his children due to a short attention span.
• Harry Stebbings shares a fear of being a mediocre parent, mentioning the challenges of early parenthood and potential strain on the marital relationship.

"I'm most nervous about my ability to stay present."

• Sam Corcos is concerned about his ability to remain engaged with his children, which is a common worry for new parents.

• The majority of people report their marriage worsens after having children.
• Sam Corcos emphasizes the importance of being proactive in maintaining marital engagement post-children.
• Scheduling regular date nights and family priorities can help maintain a strong marital connection.

"Something in the range of 80% of people say that their marriage is worse after having kids."

• This quote underscores the statistical likelihood of marital satisfaction declining after having children, which is a significant concern for new parents.

• Sam Corcos views his varied behaviors not as a dichotomy but as a reflection of his overarching principle of intentional time use.
• He believes most people lack intentionality in how they spend their time.

"I try to be very intentional with my time. Most people are not very intentional with how they spend their time."

• Sam Corcos explains his approach to time management, which involves being purposeful and deliberate, regardless of whether his actions seem spontaneous or structured.

• Sam Corcos created a list of qualities he was looking for in a partner, which he found helpful during intentional dating.
• He believes treating dating as a matching problem, not a sales problem, is key to finding a suitable partner.
• Being direct and transparent about one's intentions and deal breakers is more effective in dating.

"I think the biggest mistakes that people make is they treat dating like it's a sales problem rather than a matching problem."

• This quote reflects Sam Corcos's philosophy on dating, emphasizing the importance of compatibility over persuasion in finding a romantic partner.

• Knowing one’s co-founder well and setting clear expectations early are critical to successful co-founder relationships.
• Equity distribution among co-founders should be based on individual contributions and the company's philosophy, not necessarily equal shares.
• Addressing issues promptly and maintaining open communication can prevent resentment in co-founder relationships.

"Co-founder dating is real. Treat it like you're going to marry this person, because you almost are in terms of how impactful that relationship is on the rest of your life."

• Sam Corcos compares the importance of choosing a co-founder to that of choosing a life partner, highlighting the significance of this relationship in one's professional life.

• Being more present, especially outside of work, is an area for personal improvement for Sam Corcos.
• Practicing mindfulness and being intentional about spending quality time with loved ones are ongoing efforts.

"I think being more present is something that I'm constantly working on."

• Sam Corcos acknowledges the challenge of staying mentally present with his wife during personal time, which is a common issue for busy professionals.

• Sam Corcos is fascinated by a YouTube series that explores the capabilities of React Native.
• He admits to struggling with sugar consumption, which contradicts his personal brand.

"There's this guy, William Candion, who's a french programmer who has a YouTube channel and he has this whole series called can it be done in react native, which I've been captured by."

• This quote reveals Sam Corcos's interest in technology and programming, specifically in the potential of React Native to overcome perceived limitations.

• Hiring the right person for the right role has been a successful resource allocation decision for Sam Corcos's company, Levels.
• Conversely, hiring the wrong people has been the worst resource allocation decision, leading to an oversized product team and inefficiencies.

"Within levels, that's another easy one, which is hiring the right person for the right role."

• Sam Corcos attributes the positive trajectory of his company to strategic hiring decisions, emphasizing the importance of aligning individual strengths with company needs.

• The erosion of the epistemic commons, or the collective ability to agree on reality, is a major concern for Sam Corcos.
• The increasing division and inability to find common ground in society worry him.

"The collapse of the epistemic commons really worries me."

• This quote reflects Sam Corcos's concern about the societal trend of polarized views and the challenges it presents to collective understanding and decision-making.

• Sam Corcos has revised his views on the role of product management in software development, favoring a less significant role.
• He carries the American Constitution as a reminder of impactful organizational design.

"The role of product within software development. Product management broadly should play a much less significant role than it does as a default in most software development companies."

• This quote indicates a shift in Sam Corcos's perspective on product management's importance within the software development process.

• In the next five years, Sam Corcos hopes to expand his family and see his company, Levels, make significant progress in addressing the metabolic health crisis.

"Hopefully in five years we'll have three more kids and levels will have reached its potential and has started to really make a dent in solving the metabolic health crisis."

• This quote outlines Sam Corcos's personal and professional goals, reflecting his focus on family growth and the success of his company in the health sector.