Garry Tan and Alexis Ohanian on how to survive these crazy days (and what to learn from them)

Garry Tan and Alexis Ohanian on how to survive these crazy days (and what to learn from them)

Garry Tan and Alexis Ohanian founded Initialized Capital roughly nine years ago and they’ve closed four funds since, including most recently in late 2018.” data-reactid=”19″>Garry Tan and Alexis Ohanian founded Initialized Capital roughly nine years ago and they’ve closed four funds since, including most recently in late 2018.

Instacart and Coinbase — could be facing a tougher road in 2020. Certainly, that’s true of nearly ever other venture firm and startup right now.” data-reactid=”20″>That $225 million vehicle is roughly twice the size of their previous fund, but because of the coronavirus, the firm, and its portfolio companies — some of which include Opendoor, Instacart and Coinbase — could be facing a tougher road in 2020. Certainly, that’s true of nearly ever other venture firm and startup right now.

check out here, beginning around the 23 minute mark. In the meantime, you can find highlights from our conversation right here. Among the many things we covered:” data-reactid=”21″>To get a sense of where the team is currently, what it’s telling its founders, whether it thinks the abrupt downturn might change founders’ behavior, as well as whether either thinks big tech should be broken up, we talked with the two last night via Zoom about these issues and more. It was a fun conversation that you can check out here, beginning around the 23 minute mark. In the meantime, you can find highlights from our conversation right here. Among the many things we covered:

Ohanian said to “renegotiate everything,” from office space to venture debt agreements. He also noted there are “obvious things that you get cut early, around like non-essential marketing,” saying, “I’m as bummed as the next person to not be able to go to Cannes Lions this year, but I think we all agree like these are very reasonable things to be cutting at times like this.”

Ohanian said that “like a lot of Americans, I’m pretty frustrated by the situation right now. I mean, I live in Florida, which I think is going to see some really staggering numbers [of sickened residents] here in the next couple of weeks [because of its] elderly population and . . .a governor that’s that’s taking too long to do the things we need to do to keep them safe.”

Flexport, the logistics startup, and Ro, the tele-health startup that originally focused on men’s wellness.” data-reactid=”28″>He added that he remains inspire by the “ingenuity and the resilience” of its citizens, including founders who’ve begun adapting to these new situations, including the Initialized portfolio companies Flexport, the logistics startup, and Ro, the tele-health startup that originally focused on men’s wellness.

announced earlier this week, Flexport is "literally raising millions of dollars in donations to bring medical supplies to the Bay Area and to those healthcare workers," noted Ohanian.” data-reactid=”29″>Through a new initiative announced earlier this week, Flexport is “literally raising millions of dollars in donations to bring medical supplies to the Bay Area and to those healthcare workers,” noted Ohanian.

Ro is meanwhile offering a free Covid-19 assessment to anyone who wants to take it and if he or she is deemed at enough risk, Ro will connect that individual with a physician or RN. That medical professional can’t administer an FDA-approved test, Ohanian acknowledged, but it’s better than nothing, he suggested. "This is not a salve. This is not a magic wand at all. What hopefully this can do is give people more information quicker about the decisions they should be making about their own safety and the safety of people they might come in contact with."” data-reactid=”30″>Ro is meanwhile offering a free Covid-19 assessment to anyone who wants to take it and if he or she is deemed at enough risk, Ro will connect that individual with a physician or RN. That medical professional can’t administer an FDA-approved test, Ohanian acknowledged, but it’s better than nothing, he suggested. “This is not a salve. This is not a magic wand at all. What hopefully this can do is give people more information quicker about the decisions they should be making about their own safety and the safety of people they might come in contact with.”

Around, a two-year-old, Redwood City, Ca.-based videoconferencing startup that this month announced $5.2 million in seed funding, with "a demo that kind of honestly barely worked" but whose approach to solving a particular problem really resonated with the team.” data-reactid=”32″>On this front, Tan was clear that “no traction is fine,” explaining that the firm funded Around, a two-year-old, Redwood City, Ca.-based videoconferencing startup that this month announced $5.2 million in seed funding, with “a demo that kind of honestly barely worked” but whose approach to solving a particular problem really resonated with the team.

Tan also pointed to Instacart, the grocery delivery company that’s “doing insanely well right now,” as housebound Americans steer clear of grocery stores.

“When I met [founder and CEO Apoorva Mehta,” said Tan, “it was the early days of the iPhone app platform” and “everyone else was pitching that idea” at the same time. But where most ‘demoware’ is “jerky” or “not properly threaded,” Mehta’s “scrolled really smoothly and the images were properly threaded and I could see that he was a craftsman,” says Tan. As important to him, “Apoorva is not a person who accepts ‘no.’ He takes a no and turns it into a yes.” (Both Tan and Ohanian emphasized here that good salesmanship, meaning solid storytelling, can accomplish a lot.)

Added Tan, “There are some boards that I’m on where I was telling them this was going to happen, and they just didn’t believe me. But for a few teams, they were able to put the right things into place and start their fundraise a little bit earlier.”

suddenly more reliant on ever  — being broken up, and whether they should be.” data-reactid=”42″>Before we let them go, we asked if they had thoughts about the tech giants — on which we’re suddenly more reliant on ever  — being broken up, and whether they should be.

Ohanian, who famously cofounded the social media giant Reddit, declined to say much on this front, other than that Initialized has backed “companies that thrive in part because they’re giving everyone else a chance to compete with Amazon. So I don’t know if that doesn’t tell you something, I don’t know what else would.”

Initialized Capital” data-reactid=”55″>Photo: Tim Daw for Initialized Capital

div#stuning-header .dfd-stuning-header-bg-container {background-image: url(https://safevoip.co.uk/wp-content/uploads/2017/04/slider.jpg);background-size: initial;background-position: top center;background-attachment: initial;background-repeat: no-repeat;}#stuning-header div.page-title-inner {min-height: 650px;}