Here's something nobody tells you about why being obsessed with term sheets hurt my returns: the conventional wisdom is mostly backwards.
Most people say you should focus on term sheets. From my experience, that's not the best approach. I've seen startups stumble because of this obsession. Here's what really matters when you're investing.
The Counterintuitive Truth
Here's what surprised me most about why being obsessed with term sheets hurt my returns: the best practitioners do less, not more.
When I was building MovieLaLa, we tried to do everything at once. We had the best technology, the smartest team, and we still almost failed because we spread ourselves too thin.
The lesson I took from that experience, and from watching hundreds of other companies, is that most founders overthink this and underspend on execution. It sounds simple. It's incredibly hard to execute.
The Reality Nobody Talks About
Most people approach why being obsessed with term sheets hurt my returns with assumptions that made sense five years ago. The world has moved on. When I look at my portfolio companies, the ones that succeed are doing something fundamentally different.
The first thing to understand is that you need to move fast and break things. I've seen this play out across dozens of companies. The pattern is unmistakable.
At RemoteTeam, we learned this the hard way. We spent months going down the wrong path before realizing that customer feedback is the only metric that matters. Once we made the switch, everything changed.
The Framework That Actually Works
I'm going to share the exact framework I use when evaluating why being obsessed with term sheets hurt my returns. It's not complicated, but it requires discipline.
Step 1: you should focus on one thing and do it exceptionally well This is where most people go wrong. They skip this step entirely and jump straight to execution. Don't do that.
Step 2: most founders overthink this and underspend on execution Once you have the foundation right, this becomes much easier. I've watched founders struggle with this for months when the answer was staring them in the face.
Step 3: Iterate relentlessly Nothing works perfectly the first time. The companies in my portfolio that nail why being obsessed with term sheets hurt my returns are the ones that treat it as an ongoing process, not a one-time project.
Real Talk: What Actually Matters
I'm going to cut through the noise and tell you what actually matters when it comes to why being obsessed with term sheets hurt my returns.
First, execution speed beats perfection. Every time. I've never seen a company fail because they moved too fast on why being obsessed with term sheets hurt my returns. I've seen plenty fail because they moved too slow.
Second, measure everything. If you can't measure it, you can't improve it. Set up tracking from day one, even if it's basic.
Third, talk to your users. This sounds obvious but you'd be amazed how many founders build their why being obsessed with term sheets hurt my returns strategy in a vacuum. Get out of the building. Talk to real people.
This connects to broader themes around SPVs, rolling funds, term sheets that I've been thinking about a lot lately.
What's Next
The world of why being obsessed with term sheets hurt my returns is moving fast. What worked last year might not work next year. That's both the challenge and the opportunity.
My advice: stay curious, stay humble, and stay close to the people who are actually doing the work. Read less thought leadership and do more experiments. Talk to fewer consultants and more practitioners.
And if you're a founder building in this space, remember that the best time to get why being obsessed with term sheets hurt my returns right is before you need to. Don't wait for a crisis to force your hand.
I'll keep sharing what I learn. This stuff matters too much to keep to myself.
Frequently Asked Questions
Do all experts agree with this view?
No, and that's fine. The best ideas in business are often contrarian. I share my perspective based on my experience and data, but I encourage you to seek out opposing viewpoints and form your own conclusions.
What's the most common pushback you get on this?
People often push back by citing exceptions or edge cases. And they're usually right that exceptions exist. But building a strategy around exceptions rather than patterns is a losing game for most founders.
How can I apply this thinking to my own situation?
Start by identifying the core principle behind the opinion, not the specific example. Then ask yourself: does this principle apply to my context? If yes, test it in a small, low-risk way before going all in.