CHAPTERS
Decoding VC speak and why Series A still feels broken
Dalton and Michael open by joking about translating investor language into plain English, especially the long, polite “no.” They use this to frame the core problem: the Series A fundraising process still feels slow, opaque, and emotionally taxing for founders.
Seed fundraising modernized; Series A stuck in the past
Dalton contrasts how seed fundraising transformed (SAFE, angels, YC norms) with how Series A largely hasn’t. His claim: most seed-era advice from 20 years ago is obsolete, but Series A advice from 20 years ago is still accurate today.
Why investors keep the old process (and why it persists)
They discuss why VCs haven’t changed: institutional inertia, risk-aversion, and the incentive to follow the established playbook. Even if it’s awkward, it’s the default that feels safest for investors who themselves must raise capital.
The Standard Capital idea: apply YC-like mechanics to Series A
Dalton explains the fund’s founding premise: take what made YC effective at seed and reapply it to Series A. The focus is a productized, software-first process that minimizes founder time cost and reduces ambiguity.
Who PB is, and why his involvement matters
Michael introduces Paul Buchheit (PB) and explains his reputation for unusually high-leverage, practical advice. PB’s value comes from sharp problem-solving rather than emotional reassurance, and his track record includes impactful guidance to Michael’s companies.
Why add an engineer partner: software-first fund operations
Dalton introduces Brian Burg and argues that a software developer is essential to the fund’s model. They describe YC’s culture of building internal software to eliminate process and how Standard Capital intends to replicate that approach.
The product features, part 1: open application and no warm intros
They outline the first major feature: anyone can apply via a website, without needing network access. The point is to shrink founder effort (no deck obsession) and make the downside of applying minimal.
The product features, part 2: a public ‘standard’ Series A term sheet
The second feature is radical transparency: a standard term sheet posted publicly, before founders engage. This is positioned as the Series A equivalent of the SAFE’s clarity—reducing end-of-process surprises and legal thrash.
The product features, part 3: fixed 10% and founders name the price
Standard Capital’s lead deal is standardized at 10% ownership, while founders choose how much money they want for that 10%. This reframes valuation negotiation as a simple input rather than a multi-week bartering process.
Service-level commitment: fast, firm yes/no decisions
They propose a clear time-bound promise for receiving a firm answer, treating decision speed as a product feature. Even a fast “no” is framed as a founder benefit versus endless ‘one more meeting’ loops.
Raising capital is changing: less need for money, more cost to fundraising
Michael argues that the industry assumption—fundraising difficulty tests founder quality—should be challenged. As AI reduces capital needs and more startups become profitable earlier, the cost/benefit of a painful Series A process worsens.
Community over control: no board seat and peer-group ‘group office hours’
They emphasize a community model rather than board control: Standard Capital won’t take board seats and will instead convene founders quarterly in small groups to share metrics, challenges, and solutions. The claim is that founders benefit most from peers who are actively operating at similar scale.
Positive-sum thesis, MVP mindset, and building a ‘future’ fund with AI tools
They close with the philosophy behind the fund: non-zero-sum thinking (more great companies can exist) and an iterative, product-improvement mindset like a software startup. Standard Capital is framed as an MVP that will evolve, using AI tools internally to operate like the companies it funds.
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