Summary of Benchmark Part II: The Dinner

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00:00:00 - 01:00:00

In this video, an entrepreneur describes how a mentor helped him make a phone call late at night that changed the tenor of the conversation with his partners. The mentor helped him to focus on what he wanted to achieve and to be clear about his goals. This type of commitment from a mentor can change the odds for a startup, and it is a manifestation of the orientation of investing towards founders.

00:00:00 In this episode of acquired, Ben Miller CEO and co-founder of fundrise, discusses their company's model of investing in technology companies. The company has a 100-software engineering team, which helps them vet the quality of potential investments. They also send out investor updates to their 2 million subscribers, which helps companies raise capital more easily.
00:05:00 The Benchmark dinner is a tradition at the firm that allows partners to have open-ended discussions about topics that are not limited by agenda. One of the challenges of this tradition is that it is difficult to get all partners in a table to have a conversation, as there is often a head of the table who dominates the conversation.
00:10:00 The Benchmark Dinner is a non-hierarchical, intimate table designed by Ole Lundberg. It allows for the lifestyle of Ole Lundberg to meaningfully upgrade because of the number of people with means who have sat at the table. The Benchmark Dinner is a powerful tool for getting the whole team in sync.
00:15:00 Benchmark Partners has a Monday meeting where they discuss topics that are not related to work. This allows for open discussion and creativity. The team is able to work together as a unit, and is successful because of it.
00:20:00 Benchmark is a company that helps entrepreneurs, and one of the ways they do this is by having a culture of collective joy. One way they maintain standards of excellence is by keeping peer pressure in check.
00:25:00 The video discusses how, as Benchmark Partners, the partners work hard to stay on track with each portfolio company. In the case of one portfolio company, a decision was made Friday morning that caused emotions to rise and the partners put it in the group chat for reference. On Sunday night, when things started to go off track, Chatham reached out for help.
00:30:00 In this video, an entrepreneur describes how Eric, a mentor, helped him make a phone call late at night that changed the tenor of the conversation with his partners. Eric laid out all of the facts and reasoning for the decision, and there was no more need for logic or explanation. This shift in communication set a positive tone for the rest of the meeting, and by the time the entrepreneur landed, everything had already been arranged. This type of commitment from a mentor can change the odds for a startup, and it is a manifestation of the orientation of investing towards founders.
00:35:00 The Benchmark Partner Relationship is vital for a successful venture capital firm. To maintain trust and alignment, Benchmark Partners typically have one-on-one conversations to assess the collective purpose and identify when there is a conflict of interest. If trust is not established, the relationship will degrade and founder empowerment will be difficult to achieve.
00:40:00 The speaker describes the different types of firms in the business world, and how Benchmark has successfully differentiated themselves from their competitors. The speaker also discusses the importance of maintaining a focus on early stage companies, and emphasizes the importance of having a trusting relationship with those companies.
00:45:00 The speaker discusses the importance of being focused and having a clear focus on what you want to achieve, and how this can be difficult in a fast-paced industry. He also discusses the importance of a benchmark fund and the role it can play in setting industry standards.
00:50:00 Benchmark is a venture capital firm that strives to be ruthlessly focused and has a unique approach to investing - focusing on long-term relationships with its partners, rather than maximizing short-term returns. The longer a partner at Benchmark stays with the firm, the worse their economic deal gets, as it becomes more akin to a "master-servant" relationship. However, this is a deliberate decision made by Benchmark to maintain a high level of standards and asymmetry in its investments, which is important in order to maintain its unique relationship with its partners.
00:55:00 Benchmark's strategy is all about making trade-offs and aligning them so that they are a force multiplier, rather than in conflict with each other. The strategy seems to work well, as the companies in the portfolio have raised better rounds at higher valuations with more certainty than the average series A-funded startup.

01:00:00 - 01:55:00

In the "Benchmark Part II: The Dinner" video, the hosts discuss the culture and values of Benchmark, and how they have remained unchanged over time. They encourage listeners to take the survey at acquired.fm, and to visit the Benchmark website to learn more about the company.

01:00:00 Benchmark's goal is to make sure that every deal it participates in is a good deal, and it does this by being highly available and responsive. Benchmark is also vulnerable to stories being propagated without evidence, which can harm its image.
01:05:00 In this video, Benchmark partner Peter Diamandis talk about how important introductions are, and how valuable it is for Founders to get introductions from people who can help them get to the Finish Line faster. He also shares a note he sent internally where he found that a hundred percent of the Investments he's made have come from entrepreneurs he's introduced to Benchmark.
01:10:00 In this video, Founders will ask each other how they go about getting conviction in their businesses. Sarah says that it's a science question, and they will explore this together. She also says that, in order to be a great Founder, they need to be able to get conviction on each other. This is a process of getting conviction on each other, and it is the best part of the Founders' job.
01:15:00 In this video, Benchmark's founder Miles Brockman discusses how Benchmark has shift from being gut-driven to being analytical over time. He believes that this change has led to Benchmark becoming more successful.
01:20:00 In this video, Benchmark Partner Eric Weinstein discusses how the firm tries to maintain a balance between investing in businesses and giving them the resources they need to succeed. He also suggests that, in order to maximize the likelihood of success, a company should have a similar number of board seats, partners, and capital as it does now, but should raise less money.
01:25:00 Benchmark discusses how they think about and approach the process of succession and growth at their company. They state that it is important to have 250 hours of board meetings together in order to serve on the board and to help an individual grow.
01:30:00 The video discusses how to get to know people and build relationships at Benchmark, by going through shared experiences together, such as coffee or board meetings. It suggests that if someone is overqualified for a role at Benchmark, it may be because they are attracted to the firm's culture and values.
01:35:00 In the second part of the Benchmark Benchmark Dinner video, entrepreneurs discuss the different areas in which they specialize and how it helps the firm grow. Chathan joins the firm and brings a wealth of experience in consumer tech, which causes the firm to focus on more generalist investments.
01:40:00 In this video, John Door, Mike Moritz, and Jason Hart discuss how a venture capitalist should be dynamic and adaptable, in order to be successful. They also discuss how a venture capitalist should have a strong focus on creativity, and be open to change.
01:45:00 In this video, Benchmark partner Blake Mycoskie discusses the importance of consistency and how it is essential to the success of a partnership. He also discusses how the non-principal principal program helps to honor the statement that forced consistency is the hobgoblin of little minds. Mycoskie encourages viewers to be protective of their relationship with Benchmark and to never violate the authenticity of what the firm does.
01:50:00 The video discusses how Benchmark's focus on equality permeates its work and how the firm sees itself as not below or above anything. It also touches on how Benchmark's focus on equality has evolved over time.
01:55:00 The hosts of the "Benchmark" YouTube channel discuss the history of Benchmark, and the importance of setting a culture of openness and humility. They discuss how the culture of Benchmark has remained unchanged, except for in the event of a catastrophic event. The hosts encourage listeners to take the survey at acquired.fm, and to visit the Benchmark website to learn more about the company.