Landon Ainge’s Post

What is your intention … please vote and comment. I’m VERY intentional - what do you get on LinkedIn for? Please comment for any other reasons.

You say you need money to validate something … and in some industries that’s true In most industries that is not. Over capitalization has killed a large number of companies to. As an investor I am offered the chance to buy equity in people’s company. One question that comes to mind all to often … “if this company is going to be so valuable, then why are you giving away you equity so freely?” I don’t ask it that often, but at times I ask in a nicer form. Few have a real answer. Or one that warrants it. Here are 3 answers that AREN’T good answers: 1. Well I want to pay myself 2. We would like to start doing marketing 3. When we build it, they will come Just some of my observations What are the worst reasons to raise capital youve heard? #Landons_Thoughts #raising #equity What are some of the best reasons to raise in YOUR opinion (operators and investors)?

Who deserves more credit - the person who created the business/industry or the person who popularized it? Benjamin Franklin is credited with glasses in the 1800’s but Salvino D'Armati did so in Italy during the 13th Century. So Franklin drove adoption. Who invented the car? - was it Karl Benz in 1855 in Germany or was it Robert Anderson of Scotland in the 1840’s that created an electric vehicle. Does Henry Ford deserve the credit for establishing practical usage and adoption of the automobile. Laptops and computers might be the most interesting. Who invented them? Was it Charles Babbage in 1820? Robert Taylor who invented ARPANET, the Alto Computer and the computer mouse? Or do we credit Woz, Jobs and Gates for the realization of that scale? Why do I ask this question? Because a whole lot of people TODAY take credit for innovation - rarely is it the person clamoring on stage that deserve that credit. Most of the people that deserve the credit are more focused on the endeavor to change the 🌎 world than the speaking. Look for the quiet ones changing the world . Support them when no one else is. Celebrate with them. Henry Ford deserves a whole lot of credit - but he built on the shoulders that came before him. I personally see how any success is in many cases due to those that have gone before me - or the wisdom I have gained from those that have come before. Be prepared for my baby boomer content coming later this week. #Landons_Thoughts #Innovation #Popularization #Adoption Who deserves credit for innovation in your industry? COMMENT and give them credit where it is due for Adoption or Creation (both deserve it).

Meet Chris - she grew up in Palo Alto in the 60’s, she has deep experience in life and she’s super proud of her niece Maren Bannon (from January Ventures) It was so amazing to talk to her, learn from her and hear about what makes her life fulfilled. We met on the plane ✈️ , talked for hours and I couldn’t have been luckier with who I sat by. I learn so much wisdom from those that have gone before me. I wanted to learn how to enjoy aging - and Chris was a blessing in my life. I wanted to listen about what she loves about technology and what she hates about it. I’m curious what fun / cool experiences have you had on a plane? #Landons_Thoughts #PlaneExperiences #Technlogy I do also want to give a shout out to Maren Bannon & January Ventures they are doing some amazing things. Chris was a great advocate - despite her humility, she was so proud of her niece leading and building a VC Firm. I think she really deserves to be. Question for the comments: What fun / cool experiences have you had on a plane?

Did you know that after the Series A round every time a company raises capital it decreases the likelihood that the employees will walk away with money in the exit. But truth is that it also I ncreases the UPSIDE Potential of equity for employees (and founders), depending on the terms of the raise. We don’t talk about these things openly because people want to hire the best possible talent. Increasing potential upside and increasing risk - is the result of raising capital is something I talk about with founders I back. I love the growth of venture capital - although it’s impacts aren’t always understood. Employment at VC-backed comapnies increases the risk for them, compared to established cash flowing businesses or large publicly traded company. Startup options of today’s companies are comparable to the stock options of publicly traded companies in the 2003 year… with less liquidity. There are lots of reasons I want to share these things with the 🌎 World: 1) it attracts the RIGHT talent to startups (not displaced corporate employees or high level corporate executive that look at the startup life with intrigue) 2) It helps employees make informed decisions 3) It helps founders understand how their decisions impact all stakeholders (employees). AND Finally Because less than 5% of the world understands how Venture Capital works BUT employment at U.S. VC-backed companies grew 960% from 1990 to 2020, which is 8x growth compared to Non-VC-backed companies. So you are likely impacted by all the things above. Still small in comparable size but growing people should learn about how it impacts them. #Landons_Thoughts #Employment #VC #RaisingVC What surprises you the most about my thoughts? Do you disagree with anything? Early morning post because I fly ✈️ to Arizona this morning (Tucson here I come).

Early in my career I was looking for the answer by trying to find someone to follow, until I realized I needed to become someone that I would have followed. When people decide to work with me or partner with me … I always give them lots of opportunities to back out (as well as give them the reasons why they might not want to work with me). I don’t want people to be sold into working with me … I want to those that self select for the right journey. Unlike most my posts the purpose of this might be misleading but here’s the conclusion Breaking up a partnership or losing someone is harder than hiring or starting a partnership #Landons_Thoughts #leadership #partnership #hiring

So many aspiring investors (and current investors) REALLY actually want to be the operators or founders ... And so many successful founders feel the draw to be investors (GP's / Fund Managers)... This surprises many people when I tell founders that many investors would trade places with them. Why they ask? Because the upside is greater as an entrepreneur Because you can execute and impact your ROI Because they don't know how hard it is to talk to customers Why do successful founders want to be GP's? Because they think it's sexy - power of controlling the decision Because they don't know how your job is to say no 97%+ Because they don't know how LONG of a commitment it is to manage other people's money Because they don't know how hard it is to manage LP's (other people's money) Because they think it's like investing individually (as a private investor / angel), which IT IS NOT Most founders would make horrible investors because they can't stay with something for more than 4 years. Fund managers typically have to commit 15 years + in venture if they plan to raise more than 1 fund. Most investors would really struggle on the other side. There are exceptions, but the grass isn't always greener. #Landons_Thoughts #GrassISNTGreener #Success My recommendation, if you are successful enough to have the resources to pay specialists - then I recommend outsourcing. Don't build the venture studio - invest in the venture studio. Don't build your direct investment firm (or multi-family office) use someone already doing it Don't build the fund (if you were a successful entrepreneur) allocate and then build your next start up. This actually grows your ecosystem faster - unless you are the 1st Generation of successful founders in your GEOGRAPHY - then you SHOULD Build a fund (for Example if you are in New Mexico and you exit big - build a fund). Tagged my Jeremy & Jessica friends because I'd love to catch up.

You should do this, you should do that, recently there has been a lot of advice about how I should go about doing things. There is life long wisdom that can be found in many places. As I read this book to my daughters - lessons ring true about what matters most. In business I used to hide my sense of self in order to accomplish what my superiors wanted to achieve (sometimes I still do this). Understanding that you are unique and that uniqueness has value is important. It may seem like a childish reminder, but its wisdom in the simplest things … when you are comfortable with yourself, you can bring your unique gifts to the table. #Landons_Thoughts I should go after the things I value most … I should do it in the way I feel ethically comfortable with … I should lean into the fact that I want others to win more than me … What is the worst advice you’ve been given?

Heroes and Villians come from the same backstory. Hardship and pain are the source of so much good and so much bad. How will you react to pain? I thought the accent, the music and video would be a better format for others to see rather than my traditional long form written content. Everyone believes themselves to be a hero, but I think the question of where you lie is reliant on the answer to one question: “When you are desperate and needing, what rules are you willing to bend in order to catch a break?” Those are my thoughts #Landons_Thoughts #Heroes #Integrity I am grateful for the heroes in my life and I recognize the ones I interact with daily.

I don’t invest in destination founders, I invest in journey founders. What does that even mean … When the founder believes it’s going to get really easy in 2-3 years (either raising capital, revenue growth or a quick acquisition) then it’s likely not a fit. Why would I say this? Because in my experience both in operating and also in conversations with founders throughout the process (the later being most important) … I’ve learned wisdom that THE PROCESS of CREATING AND TESTING AND EXPERIMENTING is bumpy. But it’s the process that is the enjoyable part. It’s the process and the mission that keeps the entrepreneur going because most people SHOULD quit through the journey. The entrepreneur success is just as much about survivorship as it is luck. I’m not telling people that shouldn’t shut down a company, but I am saying if you are want to go after something venture scalable … you shouldn’t quit the first, second or third time that you feel like you should. And you will feel those things … it’s part of the journey. #Landons_Thoughts #SelfSelect #Survivorship #Mission #ProcessIsTheJourney What does this make you think about? If you are a founder please share something about your journey that you’ve learned? If you are an investor share the broader observations of the helping a large number of entrepreneurs in this process Commenting helps others learn and know they aren’t alone .