1/ people like vinod, don’t take their money.
asking a founder to fire their team for a term sheet isn’t shrewd. it’s low, and it tells you exactly who you’re dealing with.
2/ whatever he asks you to do to your team, he’ll do to you when things go south. you’ve already seen the operating model.
3/ capital is closer to a commodity than founders think. his money spends the same, but it comes bundled with him. once you see how he operates, that bundle is a liability.
4/ the mistake is treating a name brand investor as a prize. diligence runs both ways. your real leverage is the ability to say no.
5/ choose who you work with. the cap table is the one decision you can’t undo cleanly.
One more I forgot until just reminded:
3. Khosla Ventures wanted to invest in our Series C. Vinod took me, Michelle, and Lee out to dinner after he’d given us a term sheet. Near the end, Michelle and Lee got up to use the restroom. Vinod leaned over and said: “I’m impressed with you, not so much with them, what if you fire them and I’ll give you all their stock?” I think the charitable read was it was a test of my character. But I was so offended that we never spoke again. Literally blocked his number.