Interesting article, thanks for sharing! I was wondering if this was the same O'Reilly from the tech books that I've been reading all my life. Never even knew he was an investor, let alone such an innovative one.
He came up with a version of a SAFE note that allows the founders to buy out the VC at a predetermined amount if they ever become sufficiently profitable
So many things that VCs have created are really financial instruments like those CDOs. They aren’t really thinking about whether this is a company that could survive on revenue from its customers. Deals are designed entirely around an exit. As long as you can get some sucker to take them, [you’re good]. So many acquisitions fail, for example, but the VCs are happy because — guess what? — they got their exit.
Tim and Bryce have pioneered venture investing for over 15 years. Tim talks about the IndieVC model.
Interesting article, thanks for sharing! I was wondering if this was the same O'Reilly from the tech books that I've been reading all my life. Never even knew he was an investor, let alone such an innovative one.
That’s an interesting approach.