Ganesan recommends that investors sitting on a 30-50x return take some off the table, ideally when the founder is selling a secondary. Listen
Ganesan said that if holders of 2021 SaaS positions had sold 10-15%, even small amounts, they would have locked in gains. He tells founders that taking chips off makes both founders and investors more willing to 'go long', which keeps them aligned. He said it is not a fund-size issue, and illustrated this with Harry's 40x position. He personally learned the lesson from watching a $5,000 IPO allocation in Avanex rise to $200,000 and then sell for about $8,000-9,000 after a 90% drop.
“If people had taken 10%, 15% off the table, even if it's small, it locks in, allows you to go long.”
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