435th 1Mby1M Roundtable March 14, 2019: With David Lambert, Right Side Capital Management
Do NOT Write Software Without a Business Model Hypothesis During this week's roundtable, we had as our guest David Lambert,ย ...
Chief Accounting Officer, Vice President & Controller, Distribution Solutio Gro
Search every verified David Lambert interview, podcast appearance, and on-the-record quote โ each transcript cross-checked by AI and human review to confirm speaker identity. In a March 2019 roundtable hosted by 1Mby1M, David Lambert, representing Right Side Capital Management, discussed the firm's investment approach and views on early-stage startups. He stated that the firm typically invests earlier than traditional seed investors, often at the pre-seed stage, and makes hundreds of investments to manage risk, acknowledging that most of these will fail. Lambert cited PillPack, acquired by Amazon, as an example of a portfolio company exit. He emphasized the importance of managing cash burn, noting that companies burning $10,000 to $20,000 per month are more likely to pivot successfully than those burning $40,000 to $50,000. Lambert also commented on broader entrepreneurial trends, observing that building an initial product has become cheaper each year and that entrepreneurs increasingly favor bootstrapping to achieve validation before seeking venture capital. He expressed personal support for solopreneurs, contrasting this with the preferences of many accelerators. Lambert described the roundtable's feedback as direct but intended to support serious entrepreneurs, and he reiterated the firm's philosophy of "bootstrap first, raise money later or not at all."
“We basically invest usually a round or two earlier than what you would think of as traditional seed investors, and usually around earlier than what most other pre-seed investors would do.”
“Most of what we invest in is going to fail, but we do hundreds and hundreds of investments to sort of smooth out their risk at that early stage.”
“One of the companies I just mentioned earlier on, PillPack, was bought by Amazon for almost a billion dollars earlier this year.”
“Most exits happen in the sub 50 million range strategic exit, so you're going to have to manage your capital into the company to be able to make money for everybody at the sub 20 million range.”
Do NOT Write Software Without a Business Model Hypothesis During this week's roundtable, we had as our guest David Lambert,ย ...
Sign in to search the full transcript archive, filter by topic, and access every quote from David Lambert.