General Catalyst's Yuri Sagalov Shares Founder's Long Game: Pick Right Investors, Cap Early Dilution at 25%

In a recent Tech in Asia feature, Yuri Sagalov, managing director at General Catalyst, emphasized the importance of the "founder's long game" for startup success.

Sagalov warns that choosing the wrong investor can drain a startup's time, energy, and resources, derailing early momentum.

Why Investor Fit is Critical for Founders

Misaligned venture capitalists often impose burdensome reporting or push aggressive growth that mismatches the company's stage.

To safeguard control, Sagalov advises founders against giving up more than 25% equity in seed rounds.

General Catalyst's History of Patient Capital

General Catalyst has a storied history of backing resilient companies like Stripe and Airbnb, prioritizing long-term value over quick exits.

The firm's seed strategy, led by Sagalov, focuses on cap table designs that incentivize enduring partnerships.

This philosophy stems from lessons learned through market cycles, where short-term pressures have sunk promising ventures.

The impact is evident in portfolio companies that navigate downturns to achieve unicorn status and beyond.

Looking to the future, Sagalov foresees a VC ecosystem rewarding founders who maintain discipline amid economic flux.

By embracing the long game, early-stage entrepreneurs can build legacies rather than fleeting hype.