The firm also discussed its approach to startup valuations, cautioning against overvaluation and excessive fundraising. They believe that raising too much capital can lead to unnatural growth and distract from the core purpose of building the company. The partners also emphasized the importance of board seats, arguing that they enhance the partnership between the CEO and the board and carry fiduciary responsibilities. They also revealed that they often invest in companies at the time of incorporation, focusing on nascent teams.
Key takeaways:
- Benchmark, a Silicon Valley firm, is known for its equal pay among general partners and for consistently raising similar-sized funds over its many years of operation.
- Victor Lazarte, a new general partner at Benchmark, admitted that there was no business reason for the firm's presence at Slush, a major yearly event for the European startup ecosystem, other than its interest in understanding all things exceptional.
- Regarding the trend of AI in everything, partner Miles Grimshaw believes that our current use of software will seem backwards in a few years, and encourages startups to be more creative and ambitious than just replicating existing AI tools.
- Finally, Lazarte shared his experience with overvaluation and overfunding, cautioning that raising too much capital can lead to unnatural growth and distract from the core purpose of building a company.