Link Blog: Run Away When a VC Wants to ‘Preempt Your Next Round,’ How Barbie Got Made, Air Jordan Fraud, and More

Ok, I’ll get back to my procession of Startup Land Heat Checks shortly, but in the meantime, here’s a bunch of smart stuff I’ve enjoyed reading over the last few weeks:

It’s Not Your Fault, But It’s Your Problem [Charles Hudson, Precursor] — I vigorously agree with so much of what Charles writes, and so glad he’s getting posts out more frequently these days. This paen is a reminder that lots of the time you’ll encounter real roadblocks caused by issues outside of your control, but where you still need to navigate them to move forward.

“ Right now, we are in a moment where many founders find themselves confronting problems they didn’t create but must tackle. This is not the time to complain or lament your fate — it’s your opportunity to rise to the occasion and push through despite the challenges. “

What makes this worth reading is that Charles has empathy for founders (he’s been one), and will continue to show up as one of their investors in a supportive manner. So it’s not “rah rah go do the work and make me my money” bs content marketing. It’s words (and advice) he’s been given and had to take himself.

Preempting the Round [Jared Hecht, Founder — GroupMe, Fundera] — The first time a founder hears an investor suggest they might want to ‘preempt their next round’ they 🍾. The second time a founder hears this they 🙄. Jared takes you through why. It happens often enough that I’ll write a post later about what to do once you get this advance from an investor, but even that one will be largely based on the wisdom and battle scars shared here.

“ I’ve been burned by entertaining preemptive rounds on multiple occasions. It’s like touching the hot stove repeatedly. “

The Air Jordan Drop So Hot It Blew Up an Alleged $85 Million Ponzi Scheme [Misyrlena Egkolfopoulou and Kim Bhasin/Bloomberg] — My goodness ZIRP and COVID was a perfect storm for a ton of fraud. I wonder how much of the growth in the sneaker exchanges was driven by pure speculation, venture dollars, and unsustainable economics. I” know it’s a huge industry overall and sneaker heads are a real community but just read this article before flaming me.