Jason Mendelson, Co-founder of Foundry Group, has spent over 15 years explaining how venture deals really work. From blog posts to a book—Venture Deals is now in its 4th edition!—to a free online course, Jason and co-author Brad Feld are determined to Give First by demystifying VC.
Jason Mendelson, co-founder of Foundry Group, can explain what matters in negotiations between entrepreneurs and VCs in just two words:
Control and Economics.
It takes enormous expertise to make something complicated really simple, and these bare two words speak to Jason’s profound understanding of venture deals and how they work, for the entrepreneur, the investor, and the lawyers. In addition to being a VC and a company founder himself, Jason has also been a lawyer, a software engineer, and a professional drummer.
Control and economics mean that, in the hundreds of pages of legal documents around an investment, the two things that really matter are control of the company and economic return from the company. Jason and his Venture Deals co-author, Brad Feld, coined this paradigm—and Jason is very proud that it has been used, and stolen, widely.
This is what Jason is most interested in: sharing information. He loves making complex things, like the legal negotiations around VC deals, simple. He works hard to pry open the black box of VC and show everyone how deals get made, and what aspects are most important to the parties involved, whether you’re a startup founder seeking funding, an aspiring VC, or a lawyer diving into the world of venture deals.
Jason has been on this path for over 15 years now. He and Brad started blogging on the subject in 2005, and their book Venture Deals first came out in 2011. The fourth edition just published, and Jason explains why they’ve needed every single edition—he cites both better explanations and better writing. Jason and Brad also lead the free and popular online course, Venture Deals.
Listen for Jason’s insights into the evolution of venture deals, how teaching helps him learn, and, best of all, for the story of a board meeting during which all questions had to be answered with Hall and Oates song titles. See? The professional drummer bit really does connect. To listen on all platforms, choose your favorite here.
Listen for Jason’s take on…
The response to the first edition of Venture Deals:
“We immediately got hate letters from a ton of lawyers and VCs, and that’s when we knew we had done it right.”
What Venture Deals includes:
“Everything that Brad and I know about raising around of venture capital financing, and it’s slanted toward the entrepreneur.”
Why Jason and Brad wrote Venture Deals:
“So we really wanted to give this to the community and say, ‘Hey, here are all the secrets.’ Now all the bad people in ecosystem, they can just go away.”
Companies, people, and resources mentioned in this podcast:
- Defy Ventures
- Ljubljana, Slovenia
- John Stewart
- Venture Deals – free online course
- Venture Deals – 4th edition of the book
- Fred Wilson