How to get funded now: VCs Reid Hoffman, Aileen Lee, and Stacy Brown-Philpot, with Van Jones

Summary of How to get funded now: VCs Reid Hoffman, Aileen Lee, and Stacy Brown-Philpot, with Van Jones

by WaitWhat

27m•November 11, 2025
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Overview of How to get funded now: VCs Reid Hoffman, Aileen Lee, and Stacy Brown-Philpot, with Van Jones

This episode (recorded live at the Masters of Scale Summit, moderated by Van Jones and Bob Safian) assembles top investors—Reid Hoffman, Aileen Lee, and Stacy Brown-Philpot—to diagnose what’s changed in fundraising and product expectations today, and to give practical blunt advice to founders and investors. The discussion centers on higher bars at seed/A rounds, the AI platform shift and its hiring/market effects, negotiation and board dynamics, valuation risks (the “Icarus” problem), and ways underrepresented communities can benefit from disruption.

Who’s talking

  • Moderator: Van Jones (conversation leader; frames societal implications)
  • Host/Interviewer: Bob Safian (Rapid Response)
  • Panel:
    • Reid Hoffman (investor, optimistic “Bloomer” view on AI)
    • Aileen Lee (coined “unicorn,” founder of Cowboy Ventures)
    • Stacey Brown-Philpott (founder of TaskRabbit, now at Cherry Rock Capital)
  • Short closing commentary by Bob Safian

Key takeaways

  • The bar for investment has risen dramatically: product-market fit alone isn’t enough—VCs now expect clear, fast, repeatable paths to large-scale user/customer growth.
  • Seed investors expect founders to ship and show traction because modern tools make early product development cheaper and faster.
  • AI is accelerating adoption and creating new “hockey stick” winners, but that also increases investor selectivity and the risk of sharp corrections.
  • Negotiations matter: how founders and VCs behave in term discussions signals future working relationships and execution style.
  • Large raises at early stages can create capital inefficiency and set unrealistic expectations for future rounds—beware of “Icarus” strategies.
  • Disruption offers opportunity: historically marginalized communities may find new pathways into entrepreneurship and advantage if they lean in.

What VCs are looking for now

  • Rapid, demonstrable scaling potential: not just thousands but clear pathways to tens or hundreds of thousands of users/customers—and proof you can accelerate growth timeline.
  • High-growth metrics earlier: benchmarks that used to be “good” (e.g., $1M ARR in a year) are often insufficient; investors are comparing to much faster growth companies.
  • Business models that beat “build internally” options: for enterprise startups, the product must be clearly superior to the company’s option to build the solution themselves and justify a meaningful budget allocation.
  • Founders who show resourcefulness: because tools lower product-building costs, seed-stage investors expect founders to have shipped meaningful functionality and shown hustle.
  • Strong net retention and value-added offerings for enterprise customers.

Practical advice for founders (actionable)

  • Show measurable scale and the plan to multiply it quickly (e.g., how you get from 6k -> 60k customers and the timeframe).
  • Use AI tools today—incorporate them into your workflow and product; being AI-literate is increasingly table stakes.
  • Anticipate VC skepticism: run your idea through a “skeptical VC test” and prepare crisp answers to growth, conversion, moat, and pilot-to-paid questions.
  • Negotiate thoughtfully: treat term negotiations as an indicator of future collaboration; be realistic about valuation and dilution trade-offs.
  • Choose fundraising size strategically: raising a lot early can reduce capital efficiency and make later rounds harder; don’t chase headlines.
  • Elevate digital-native talent within your organization—young employees often lead in AI fluency and product usage.

AI, jobs, and society — Van & Reid’s framing

  • Reid Hoffman’s “Bloomer” stance: AI is a cognitive industrial revolution. He believes it will be net positive historically, but transitions are disruptive and require policy and retraining attention.
  • Job displacement will not be one-for-one: routine/scripted roles (e.g., many customer service tasks) are highly susceptible, but new roles and transformed work will emerge.
  • Practical mitigation: build reskilling pathways, invest in learning platforms (certification/knowledge transformation), and expose workers to AI tools so they can augment rather than be replaced.
  • Opportunity for underserved communities: times of disruption loosen old gatekeeping. Diverse perspectives can spot opportunities others miss; leverage this to broaden participation in AI-driven markets.

Human dynamics, boards, and negotiation

  • How founders negotiate and how VCs show up during term talks are strong signals for future operations and board relationships.
  • Valuable companies focus less on a few percentage points of dilution and more on alignment for success—both sides should be collaborative, not zero-sum.
  • VCs typically ask for board seats when leading A rounds; founders should view these conversations as partnership-building.

Risks highlighted

  • “Icarus companies”: overfunded or over-ambitious companies flying too close to the sun—big raises and aggressive expectations can backfire.
  • “Hockey stick” mania: investors chasing rapid viral/AI winners may overpay for growth prospects that aren’t durable; potential for steep corrections.
  • Valuation disconnects: private round multiples sometimes far exceed public comps; founders and investors should be wary of unsustainable pricing.

Notable quotes (short)

  • “If you’re not hearing a yes, it’s a no.” — Reid Hoffman (directness around fundraising signals)
  • “Valuable companies have boards.” — Reid Hoffman (on governance and company value)
  • “We have a lot of Icarus companies right now.” — Aileen Lee (warning about overreach and high early valuations)
  • “Start using AI. If you’re not using it daily, you’re behind the curve.” — Reid Hoffman / panel consensus

Recommended next steps (for founders and operators)

  • Prepare a concise growth-to-scale narrative with timelines and metrics: show how you move from early traction to mass adoption.
  • Use AI tools daily for product, research, and operations; document how AI improves unit economics or growth.
  • Run skeptical VC Q&A rehearsals and iterate on weak answers.
  • Raise right-sized capital with a clear plan for capital efficiency and future rounds—avoid headline-chasing unless it matches your long-term thesis.
  • Recruit and empower digital-native and diverse team members; include AI-savvy advisors or board members early.
  • Build or partner on reskilling programs if your business touches high-turnover or automation-prone workforces.

Final framing from the episode

This is a high-wire moment: disruption increases both risk and opportunity. Founders must be faster, scrappier, and more honest about their trajectories; investors are more choosy and driven by comparisons to the fastest-growing AI winners. At the same time, the upheaval can democratize opportunity—if founders and leaders intentionally bring diverse talent into the fold and prioritize practical reskilling and inclusion.