20VC: Zach Weinberg on Whether A Company is a Democracy, The Importance of Ownership, The Rise of Pre-Emptive Rounds, Multi-Stage Funds Entering Seed and How he Approaches Both Risk and Personal Capital Allocation
Zach Weinberg is a Co-Founder of Operator Partners, operators funding operators, with no outside LPs, just their own capital. Fun fact, 20VC Fund has actually invested with them in 3 companies from Alt, Dooly.ai and Boom Pay. Prior to founding Operator Partners, Zach was the Co-founder/COO of Flatiron Health (acq @Roche for $2b) and before Flatiron Zach co-founded Invite Media (acq @Google for $81m). If that was not enough, Zach has also been an incredibly successful angel in the past with a portfolio including RigUp, Ro, Color, BlueApron and Plaid to name a few.
In Today’s Episode You Will Learn:
1.) How Zach made his way into the world of startups, came to found Flatiron (acq for $2Bn) and how that led to Operator Partners?
2.) How does Zach analyse his own personal capital allocation? How much in funds? How much in cash, equities, direct, credit etc etc? How does Zach analyse his relationship to money? How has it changed over time? How does Zach evaluate his relationship to risk?
3.) What does Zach make of the rise of pre-empted rounds? When should founders takem them vs reject them? How does Zach feel about multi-stage funds re-entering seed aggressively? How does he advise founders? What are the pros and cons of having multi-stage money?
4.) How does Zach think about the importance of ownership? How does Zach analyse the re-investment decision? How does he approach reserve allocation? How does Zach reflect on his own price sensitivity? How has his relationship to price and ownership changed with time?
5.) How does Zach feel about Brian Armstrong’s piece on employees bringing their own political and external beliefs into the workplace? Why does Zach believe that companies are not a democracy? Why does Zach believe that we do not live in a democracy any longer?
Item’s Mentioned In Today’s Episode
Zach’s Favourite Book: Calling Bullshit: The Art of Skepticism in a Data-Driven World
Zach’s Most Recent Investment: David Energy