Ron Conway at Startup School 2013

Conway traces his investment in Twitter to his relationship with Evan Williams, which began through Google’s acquisition of Blogger. After Odeo struggled, Williams returned investors’ money; Conway was impressed by his character and committed $75,000 to his next startup, Twitter. Conway says SV Angel invests in people before products.

Conway describes Facebook’s early user growth and Mark Zuckerberg’s confidence in its potential, then compares that with Twitter and Snapchat. He says Pinterest took longer: Ben Silbermann iterated for a year and a half, stayed close to users, and built a calm, product-focused team. Conway says SV Angel’s team and Shana Fisher brought Pinterest to his attention.

Conway advises founders to prioritize investors who can add value over the highest valuation. He points to Airbnb choosing Andreessen Horowitz and Jeff Jordan, even though other investors offered more. He also recommends getting a term sheet to create urgency, setting a clear deadline for competing offers, and confirming commitments in writing.

Conway looks for strong product focus and decisiveness, including the willingness to hire and fire when needed. He says Jack Dorsey addressed management gaps by building a strong team around him while creating Square. Conway also notes that startups became cheaper to launch, mobile changed how people use the internet, and design and interface gained importance relative to algorithms.