Episodios
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Follow me @samirkaji for my thoughts on the venture market, with a focus on the continued evolution of the VC landscape.
Today Iâm excited to speak with the founding team of Chemistry, a new venture firm led by Kristina Shen, Ethan Kurzweil, and Mark Goldberg, who recently spun-out of blue chip firms Andreessen Horowitz, Bessemer, and Index Ventures, respectively. The firm just announced a significantly oversubscribed $350MM debut fund.
As a new entrant to the market (in the toughest time to start a new firm in over a decade), I wanted to ask them about their blueprint for building a firm, including how they chose to partner up and the work they did beforehand, LP strategies and selection, and what they felt was their unique reason to exist in a highly competitive market.
About Kristina Shen
Kristina Shen is Co-Founder and Managing Partner at Chemistry Ventures, overseeing a $350M fund focused on early-stage software investments.
Formerly a General Partner at Andreessen Horowitz (2019-2024), she led significant investments in Mux, Pave, Wrapbook, and Rutter. Kristina specialized in high-growth startups.
She began her venture career as a Partner at Bessemer Venture Partners (2013-2019), working with companies such as Gainsight, Instructure, and ServiceTitan. Previously, she worked in investment banking at Goldman Sachs and Credit Suisse, focusing on technology sectors.
About Mark Goldberg
Mark Goldberg is Co-Founder and Managing Partner at Chemistry Ventures since, investing in seed and Series A software startups. Previously, a Partner at Index Ventures (2015-2023), he worked with companies such as Plaid, Pilot, Intercom, and Motive, establishing a strong fintech and software portfolio.
Prior to Index, Mark worked at Dropbox in Business Strategy & Operations and Strategic Finance (2013-2015), where he contributed to growth strategies during Dropboxâs scaling phase.
He started his career as an Analyst at Morgan Stanley (2007-2010) before joining Hudson Clean Energy as a Senior Associate. Mark holds an AB in International Relations from Brown University.
About Ethan Kurzweil
Ethan Kurzweil is Co-Founder and Managing Partner at Chemistry Ventures, leading investments at the seed stage for tech-driven startups. He also serves as a board member for companies like Intercom and LaunchDarkly.
Previously, Ethan was a Partner at Bessemer Venture Partners (2008-2024), where he worked with companies such as HashiCorp, Twilio, and Twitch. His focus on software and digital platforms spanned roles as board member and investor, contributing to significant IPOs and acquisitions.
Early in his career, Ethan worked in business development at Linden Lab (creators of Second Life) and served as a Senior Manager in the CEOâs Office at Dow Jones. He holds an MBA from Harvard Business School and an AB in Economics from Stanford University.
In this episode, we discuss:
* (01:43): Importance of Team Chemistry and Partnership Formation
* (03:27): Challenges of Building a Firm in the Current Environment
* (08:00): Unique Value Proposition for Early-Stage Founders
* (10:18): Early-Stage Focus and Differentiation from Large VC Firms
* (16:12): Fundraising Insights and LP Relationship Building
* (19:00): Choosing Aligned LPs and Targeting Long-Term Partnerships
* (27:23): Single-Trigger Investment Decision-Making Model
* (30:12): Balancing Conviction with Collaborative Feedback
* (35:23): Independent Decision-Making for Follow-On Investments
* (39:19): Personal Contrarian Beliefs about the Venture Industry
* (42:18): Closing Remarks on Building a New Venture Franchise
Iâd love to know what you took away from this conversation with Kristina, Mark, and Ethan. Follow me @SamirKaji and give me your insights and questions with the hashtag #ventureunlocked. If youâd like to be considered as a guest or have someone youâd like to hear from (GP or LP), drop me a direct message on Twitter.
Podcast Production support provided by Agent Bee
This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit ventureunlocked.substack.com -
Follow me @samirkaji for my thoughts on the venture market, with a focus on the continued evolution of the VC landscape.
In this episode, Sam Heshmati and Vince Timoney from Citizens Private Bank stop by to talk about all things venture banking and how the industry is recovering from the 2023 regional banking crisis.
Sam and Vince, both of whom have extensive experience in the banking sector, share their insights on the challenges faced during this period, including the impact on startups and venture funds. They also discuss the significant changes in the banking industry since the crisis, such as the increased cost of capital, the fragmentation of fund banking services, and the shift in how banks serve emerging managers and venture capital firms.
The conversation provides a detailed look at the current landscape of banking for the venture ecosystem and how Citizens Private Bank is positioning itself to help clients navigate these challenges.
About Sam Heshmati:Sam Heshmati is an Executive Managing Director at Citizens Private Bank, heading the emerging VC and innovation practice. Previously, he co-founded and led programs serving the VC and tech community, cultivating and managing relationships with some of the nationâs top emerging managers, accelerators and entrepreneurs at the former First Republic Bank. He has over 21 years of experience in the technology ecosystem, serving clients not only as a banker, but as trusted partner with the expertise needed to help navigate important decisions within this space. Over his career, he has worked with more than 1000 early-stage VC firms and several thousand venture-backed startups. Prior to joining First Republic Bank in 2012, he spent 10 years as a tech banker at Silicon Valley Bank and Square 1 Bank. He earned a bachelorâs degree from San Jose State University.
About Vincent Timoney:Vincent Timoney is a Senior Managing Director at Citizens Private Bank, serving the fund finance and innovation economy nationwide. He has more than 12 years of experience working with VCs in business development, sales, lending and relationship management roles within the venture capital and technology ecosystem.
In this episode, we discuss:
(01:34) The evolving importance of banking, especially after the events of 2023.
(02:16) Banking Crisis of 2023 triggered by the collapse of Silicon Valley Bank and First Republic Bank.
(04:00) The impact of Silicon Valley Bank on the venture ecosystem and the rapid sequence of events leading to its downfall.
(07:00) How the banking industry has changed post-crisis, focusing on client expectations and digital banking.
(08:30) The increase in players in fund banking and the rise in cost of capital.
(12:00) Sam and Vince explain their journey of joining Citizens Private Bank, focusing on safety, stability, and continuing their work in the sector.
(18:00) Challenges faced by emerging managers, including capital call lines and banking needs.
(22:12) The importance of a seamless digital experience.
(28:16) Explanation of management company lines and their use by emerging managers.
(31:00) Advice for emerging managers on managing financial challenges and understanding the economics of running a fund.
(34:00) How technology and APIs are used to enhance banking services and integrate with third-party providers.
(38:00) Importance of offering personalized banking experiences tailored to individual client needs.
(40:00) Value-added services and why banks offer advisory support and strategic guidance.
(45:10) The long-term commitment required to build a successful banking franchise in the venture ecosystem.
Iâd love to know what you took away from this conversation with Sam and Vince. Follow me @SamirKaji and give me your insights and questions with the hashtag #ventureunlocked. If youâd like to be considered as a guest or have someone youâd like to hear from (GP or LP), drop me a direct message on Twitter.
Podcast Production support provided by Agent Bee
This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit ventureunlocked.substack.com -
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Follow me @samirkaji for my thoughts on the venture market, with a focus on the continued evolution of the VC landscape.
This week we welcome the three co-founders of Saga Ventures: Ben Braverman, Thomson Nguyen, and Max Altman. Saga Ventures is a seed-stage investment firm that recently closed its first fund of $125M.
The conversation dives into their experiences in raising their first fund, building a team, and navigating a competitive seed-stage market. The co-founders bring unique skill sets from their previous roles in operating and investing, and this episode sheds light on how they strategically combine those skills to differentiate themselves from other firms.
About Ben Braverman
Ben Braverman is a Co-Founder and Managing Partner at Saga Ventures, a $125M venture capital fund he co-launched in March 2024 alongside Max Altman and Thomson Nguyen. At Saga, Ben focuses on early-stage investments, working with pre-seed and seed-stage companies across various sectors. His background in scaling companies' go-to-market strategies provides valuable insight into helping startups grow efficiently and sustainably.
Before founding Saga Ventures, Ben spent nearly nine years at Flexport, a major player in the logistics space. Starting as Chief Revenue Officer in 2014, he was instrumental in building and scaling Flexportâs global sales and go-to-market teams. Later, as Chief Customer Officer, Ben oversaw customer relationships and corporate development, ensuring the company's growth aligned with customer needs. His final role at Flexport saw him leading Flexport Ventures and Corporate Development, where he focused on the company's strategic investments.
Earlier in his career, Ben held growth and sales leadership positions at startups like URX, which was acquired by Pinterest, and Heyzap, acquired by RNTS Media. He holds a degree from Vassar College and has spent his career helping innovative companies grow through a hands-on approach to business development and customer engagement.
About Thomson Nguyen
Thomson Nguyen is a Co-Founder and Managing Partner at Saga Ventures, where he has been since March 2024. At Saga, he focuses on early-stage investments in technology-driven companies, drawing on his extensive experience in data science, machine learning, and entrepreneurship. Thomsonâs deep technical expertise helps him identify promising startups, especially those at the intersection of technology and business.
Prior to Saga, Thomson founded Nearside, a financial services platform for small businesses, which he led from 2019 until its acquisition by Plastiq in 2022. Before that, he was an Entrepreneur in Residence at Kleiner Perkins and the Head of Capital Data Science at Square, where he managed the data science team responsible for critical business areas like default risk, marketing optimization, and product innovation. His career in fintech is rooted in his work at Framed Data, a startup he founded and later sold to Square.
Thomson started his career as a data scientist at tech companies like Lookout and Causes, where he applied his expertise to user segmentation and predictive analytics. He also has a longstanding academic affiliation with New York Universityâs Courant Institute, where he continues to contribute to research in machine learning and cybersecurity. Thomson holds degrees in Applied Mathematics from the University of Cambridge and Mathematics from the University of California, Berkeley.
About Max Altman
Max Altman is a Co-Founder and Managing Partner at Saga Ventures, a venture capital fund he helped establish in March 2024. Max focuses on investing in pre-seed and seed-stage companies, working closely with his co-founders to identify and support high-potential startups. His experience as both an investor and operator allows him to bridge the gap between capital and company-building.
Before co-founding Saga Ventures, Max was a Partner at Alt Capital from 2021 to 2024, where he invested in early-stage companies. Prior to that, he held a similar role at Apollo Projects, another investment firm focused on startups. His career as an investor began at Hydrazine Capital, where he worked from 2016 to 2019. During his time there, Max honed his skills in evaluating high-growth tech companies and building meaningful relationships with founders.
Earlier in his career, Max gained operating experience at Zenefits, where he worked in product management, and at Allston Trading as a trader. He also spent time at Microsoft as a program manager. Max holds a degree in Computer Science from Duke University and has built his career by combining his technical background with a passion for early-stage investments.
In this episode, we discuss:
* (01:42) The origin story of Saga Ventures, and how the co-founders decided to join forces. Max Altman shares how the idea of starting a fund came about and why he didn't want to follow a solo GP model
* (03:31) The unique, complementary skill sets the team brings to the tableâBenâs expertise in go-to-market strategy, Thomsonâs technical knowledge, and Maxâs investor relationshipsâand how this combination is designed to support early-stage founders
* (04:58) Their hands-on, founder-first approach, focusing on critical areas like product development and initial hires, differentiates Saga from other early-stage firms.
* (06:11) The "reality meter" and the importance of being able to take hard hits as an entrepreneur or venture firm, emphasizing how all three co-founders share this mentality
* (07:50) The team reflects on the challenges of raising their first fund, including dealing with partnership risk, self-awareness, and the difficulties of convincing LPs early on without firm commitments
* (10:02) The careful consideration that went into deciding the fund size of $125M, balancing capital deployment with staying competitive in seed-stage deals.
* (12:00) Their fundraising process, the strategic decisions involved, and the importance of securing anchor investors before taking meetings with LPs.
* (15:19) What LPs are looking for in early-stage venture firms and the role of partnership risk in their decision-making process
* (17:33) Why their shared vision and complementary skill sets have aligned them for long-term success as a team, along with their commitment to focusing on specific sectors like fintech and infrastructure
* (19:22) The importance of having a clear value-add for founders beyond capital, and the importance of storytelling and salesmanship in early-stage companies
* (23:25) The internal decision-making process at Saga, how the partners determine which deals to pursue, and the dynamics of reaching consensus when choosing investments
* (26:45) Patience and long-term thinking are critical when evaluating deals, and how they ensure they donât rush into investments just for fear of missing out
* (28:19) The importance of founder resilience and self-awareness, noting that the best founders are those who can attract talent and navigate through difficult times
* (30:00) Why salesmanship and charisma are critical qualities in founders, as startup leadership often requires convincing others to join and invest in challenging ventures
* (32:00) The team discusses their approach to sourcing and winning deals in a highly competitive market, focusing on the importance of building trust and delivering consistent value to founders.
* (34:05) Max talks about the significance of being the first firm to back companies and how they collaborate with other VCs to co-lead investments.
* (36:45) Being transparent and responsive to founders creates lasting relationships, even when they pass on deals
* (38:04) How they measure success internally at Saga Ventures, focusing on inputs such as responsiveness and the strength of founder relationships, while understanding that long-term results will take years to evaluate
* (41:00) Key lessons from the fundraising process, stressing the importance of clarity when positioning their fund to LPs and being patient in closing commitments
* (43:25) How the venture landscape has evolved over the past 18 years, highlighting the increasing competition and the need for VCs to be highly self-aware and strategic when entering deals
* (45:40) Building a venture firm requires a long-term mindset, much like running a successful company
Iâd love to know what you took away from this conversation with Glenn. Follow me @SamirKaji and give me your insights and questions with the hashtag #ventureunlocked. If youâd like to be considered as a guest or have someone youâd like to hear from (GP or LP), drop me a direct message on Twitter.
Podcast Production support provided by Agent Bee
This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit ventureunlocked.substack.com -
Follow me @samirkaji for my thoughts on the venture market, with a focus on the continued evolution of the VC landscape.
Today we're thrilled to be joined by Glenn Solomon, managing partner at Notable Capital. Along with Granite Asia, Notable Capital was one of two groups to emerge from GGV Capital, which recently split into two groups with Notable based in Silicon Valley, New York, and covering companies in the U. S., Israel, Europe, and Latin America.
Glenn brings nearly 30 years of venture experience to the table, and it was great to draw from his insights in investing, building firms, and working with high performing teams.
About Glenn Solomon:Glenn Solomon is the Managing Partner at Notable Capital. He focuses on investing in early to growth-stage companies across different sectors, including cloud infrastructure and business applications. He also serves on the boards of several companies, such as HashiCorp, Opendoor.com, and Orca Security.
Before joining Notable, Glenn was a General Partner at Partech International from 1997 to 2006, where he worked on technology investments. Earlier in his career, he was an associate at SPO Partners from 1993 to 1995 and started as a financial analyst at Goldman Sachs from 1991 to 1993.
Glenn Solomon earned his MBA and BA from Stanford University.
In this episode, we discuss:
(01:42) Glennâs journey from playing tennis at Stanford to discovering a passion for technology and investing
(02:44) A pivotal moment when encountering the internet for the first time, which sparked a deeper interest in technology
(04:06) The transition from Partech International to joining Granite Global Ventures in the mid-2000s
(05:03) The appeal of GGV's global perspective and innovative approach in venture capital
(07:48) The early strategy at GGV, focusing on differentiation in the venture space
(09:01) The necessity of adapting to the evolving nature of the industry
(10:29) The rebranding to Notable Capital and the strategic decisions following the split from GGVâs Asia team
(12:39) The guiding principles at Notable Capital, emphasizing the importance of speed and maintaining a sector-focused strategy
(15:19) An example of a recent deal showcasing how the firmâs flat structure empowers all team members to contribute significantly
(17:33) Staying focused on specific sectors and building a strong support platform for portfolio companies
(23:25) Engaging with CSOs and CDOs to maintain an edge in cybersecurity and data sectors.
(27:00) Discusses the importance of resourcefulness in venture capital and how they assess this quality during interviews.
(36:31) Advice on being a successful VC, stressing the critical role of building strong, lasting relationships
(39:30) Success in venture capital fundamentally relies on working with exceptional people
Iâd love to know what you took away from this conversation with Glenn. Follow me @SamirKaji and give me your insights and questions with the hashtag #ventureunlocked. If youâd like to be considered as a guest or have someone youâd like to hear from (GP or LP), drop me a direct message on Twitter.
Podcast Production support provided by Agent Bee
This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit ventureunlocked.substack.com -
Follow me @samirkaji for my thoughts on the venture market, with a focus on the continued evolution of the VC landscape.
In this episode, we are thrilled to be joined by Ben Sun, co-founder of Primary, a seed-stage fund based in New York. Ben shares his journey from investment banking to startup founder, and eventually to co-founding Primary, which has backed companies like Coupang and Jet.
Ben provides deep insights into venture math and the intricacies of completing a GP-led secondary. He discusses his background and the inspiration behind starting Primary in 2015. Ben talks about the challenges he faced as a founder and the importance of truly understanding the business as a VC. He explains Primary's hands-on approach, emphasizing the need for a high seed-to-A graduation rate and how their impact team supports portfolio companies.
The conversation covers the metrics used to measure success and the importance of waiting for the right investment opportunities. Ben explores the changing landscape of venture capital, strategies for finding alpha and generating returns, and the importance of sector specialization and deep sector expertise. He also touches on deal flow challenges at the seed stage and the role of incubations in lowering the cost basis.
So many great nuggets in this episode, enjoy!
About Ben Sun:Ben is a Co-Founder and General Partner at Primary. Forbes' Midas List ranks him as one of the top 100 tech investors in the world. His founder-first approach originates from having been one: His experiences cofounding Community Connect, one of the first social networking companies, and LaunchTime, an incubator, inform how he supports founders in the portfolio.
Ben focuses his investing activities on primarily consumer-facing companies. Ben has been active in the NYC tech community for over 20 years. Prior to becoming an entrepreneur and investor, Ben worked at Merrill Lynch in the Technology Investment Banking Group, but he really began his career at the age of eight when he worked in his parentsâ Chinese restaurant.
In this episode, we discuss:
(01:21) Journey from investment banking to founding Primary Ventures.
(03:45) Starting Primary Ventures and focusing on seed-stage investments in New York.
(04:12) Emphasis on being hands-on and aligning with founders.
(06:34) Roles and functions of the impact team at Primary Ventures.
(10:00) Measuring success through surveys and key performance indicators
(13:23) The importance of choosing the right investment opportunities and achieving high graduation rates from seed to series A
(22:00) How partners wait for the right pitch using an internal rubric
(26:57) Benefits of sector specialization, with a focus on fintech expertise
(35:00) Strategies for maintaining a low-cost basis and navigating market fluctuations, including secondary sales
(41:00) GP-led secondaries and benefits of providing liquidity to limited partners
(49:00) Advice for new venture capitalists: support founders and develop a long-term strategy
Iâd love to know what you took away from this conversation with Lindel. Follow me @SamirKaji and give me your insights and questions with the hashtag #ventureunlocked. If youâd like to be considered as a guest or have someone youâd like to hear from (GP or LP), drop me a direct message on Twitter.
Podcast Production support provided by Agent Bee
This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit ventureunlocked.substack.com -
Follow me @samirkaji for my thoughts on the venture market, with a focus on the continued evolution of the VC landscape.
This week I'm excited to sit down with Lindel Eakman from Foundry. Lindel has been an investor in funds and companies since the early 2000s when he started at UTIMCO.
In our conversation, Lindel talks about being one of the first investors in Union Square Ventures, his preference for smaller partnerships, and the art of conducting quality reference calls on GPs. Having known each other for a while, our chat felt like a fun and casual water cooler conversation about the venture capital world.
About Lindel Eakman:Lindel Eakman is a partner at Foundry, where he focuses on early-stage investing. Since joining in 2015, Lindel has been active across the portfolio, working closely with partner funds and leading new direct investments. He is known for his humble and supportive approach, valuing the hard work of founders.
Before Foundry, Lindel managed the private investment program at the University of Texas Investment Management Company (UTIMCO) from 2002 to 2015. At UTIMCO, he built the venture capital program and invested in firms like IA Ventures, True Ventures, Union Square Ventures, and Foundry.
Lindel began his career in finance at KPMG in the M&A Tax Practice from 1997 to 2001 and then worked as a Corporate Finance Associate at Stephens, Inc. in 2002. He holds an MBA from the University of Texas at Austin McCombs School of Business and a BBA in Accounting and Finance from Texas Christian University. He is a CPA and a CFA charter holder.
In this episode, we discuss:
(01:14) Early Career and Union Square Ventures and moving to Foundry
(03:00) Investment Philosophy and Strategy
(04:28) The value of partnering with emerging managers
(05:55) Selecting GPs and Making Investment Decisions
(10:30) The Current Venture Market Landscape in 2024.
(13:00) Challenges and Opportunities for New Managers
(17:00) Future of Venture Capital
(21:00) Importance of People in Venture
(25:00) Secondaries and Liquidity Opportunities
(29:00) The importance of evaluating partnership dynamics in emerging managers
(33:00) Best practices for conducting reference checks.
(37:00) How virtual interactions affect partnership assessments and fundraising
(42:00) Advice for new managers on constructing a venture portfolio, focusing on sectors and small funds
(47:00) Role of Large Funds in a Venture Portfolio
Iâd love to know what you took away from this conversation with Lindel. Follow me @SamirKaji and give me your insights and questions with the hashtag #ventureunlocked. If youâd like to be considered as a guest or have someone youâd like to hear from (GP or LP), drop me a direct message on Twitter.
Podcast Production support provided by Agent Bee
This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit ventureunlocked.substack.com -
Follow me @samirkaji for my thoughts on the venture market, with a focus on the continued evolution of the VC landscape.
Tom Loverro, General Partner at IVP is our guest as part of our Venture Unlocked Shorts series intended to go deep on a single topic.
We revisit Tomâs Twitter post from early 2023, which spoke to the market shift that was in motion and the difficulties start-ups would face in a capital-constrained market. Specifically, he spoke about 2024 as being a time of reckoning for many companies that were built with growth at all costs mentality.
We went through that original post, and whatâs transpired since then, including why itâs time for well-positioned startups to go on offense again.
Tom brought a lot of interesting insights for founders and VCs alike, so we hope you enjoy the episode.
About Tom Loverro:Tom Loverro is a General Partner at IVP in Menlo Park, California, where he focuses on investing in enterprise software and fintech companies. Since joining IVP in 2015, he has served as a Board Director or Observer for several companies, including Attentive, NerdWallet, Paper, Podium, Skydio, and TaxBit. He has also co-led investments in Amplitude, Datadog, GitHub, IEX, OnDeck, and Tanium.
Prior to IVP, Tom was a Principal at RRE Ventures, focusing on early and mid-stage startups, and an Entrepreneur-in-Residence at Lightbank. He also served as Senior Director of Product Marketing at Drobo, Inc., and began his career as an Investment Banking Analyst at Goldman Sachs within the Technology, Media, and Telecommunications Group.
Tom holds an MBA from the Kellogg School of Management at Northwestern University, with concentrations in Finance, Marketing, and Entrepreneurship & Innovation. He earned a BA in Political Science and History from Stanford University.
In this episode, we discuss:
(01:37) - Discussion on Tom's Twitter post from January 2023 and its context
(02:09) - Tom's insights on the shift from a zero interest rate environment
(02:59) - The concept of a mass extinction event for startups in 2023-2024
(03:31) - Comparison with the Great Financial Crisis and its impact on startups
(04:01) - The role of venture excess in 2021 and its aftermath
(05:00) - Discussion on venture fund deployment and its impact on startups
(06:49) - Dry powder theory and its implications on startup funding
(07:49) - Insights on current market conditions and startup valuations
(09:14) - Strategies startups adopted in response to market conditions
(10:27) - The three archetypes of startups in the post-2021 era
(13:18) - Observations on fundraising challenges and potential outcomes for startups
(14:48) - Impact of LP capital dynamics on venture funding
(16:34) - The evolving role of private equity in acquiring tech startups
(18:09) - Comparison of venture fund impacts on early and late-stage investors
(21:30) - Discussion on the IPO market and its high bar for startups
(24:19) - The broader ecosystem of liquidity options for startups today
(25:41) - Tom's recent post on shifting from defensive to offensive strategies
(28:47) - Characteristics of startups that should consider going on offense
(30:00) - Importance of survival, product-market fit, and unit economics for startups
(31:50) - Potential exogenous events and their impact on market predictions
(34:00) - Tom's advice to founders on acting with conviction
Iâd love to know what you took away from this conversation with Tom. Follow me @SamirKaji and give me your insights and questions with the hashtag #ventureunlocked. If youâd like to be considered as a guest or have someone youâd like to hear from (GP or LP), drop me a direct message on Twitter.
Podcast Production support provided by Agent Bee
This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit ventureunlocked.substack.com -
Follow me @samirkaji for my thoughts on the venture market, with a focus on the continued evolution of the VC landscape.
We're re-joined by Mike Maples, Jr. of Floodgate, this time to discuss his just released new book "Pattern Breakers."
Mike was first on the pod in 2021 and it was great to catch up again, this time to discuss the importance of identifying founders who are true pattern breakers. We spoke about how his observations on the last 14 years at Floodgate inspired him to write the book.
We went through concepts such as founder-future fit, the winning formula of inflections and insights, and his experience that 80% of their returns have been from companies with some major insight or pivot.
You can find Mike's book "Pattern Breakers" and additional insights on his substack at patternbreakers.substack.com.
About Mike Maples, Jr.:Mike Maples, Jr. is a co-founding Partner at Floodgate. He has been on the Forbes Midas List eight times in the last decade and was also named a âRising Starâ by FORTUNE and profiled by Harvard Business School for his lifetime contributions to entrepreneurship.
Before becoming a full-time investor, Mike was involved as a founder and operating executive at back-to-back startup IPOs, including Tivoli Systems (IPO TIVS, acquired by IBM) and Motive (IPO MOTV, acquired by Alcatel-Lucent.)
Some of Mikeâs investments include Twitter, Twitch.tv, Clover Health, Okta, Outreach, ngmoco, Chegg, Bazaarvoice, and Demandforce.
Mike is known for coining the term âThunder Lizards,â which is a metaphor derived from Godzilla that describes the tiny number of truly exceptional companies that are wildly disruptive capitalist mutations. Mike likes to think of himself as a hunter of the âatomic eggsâ that beget these companies.
Mike is the host of the Pattern Breakers podcast, which shares startup lessons from the super performers.
In this episode, we discuss:
(02:00) The story behind writing "Pattern Breakers" and the investment in Twitch and the importance of pivots
(04:07) Insights from returns on pivots and major insider pivots
(05:02) The concept of founder-future fit and initial skepticism
(07:04) The inflection point of Twitch pivoting from Justin.tv
(10:28) Authenticity and insights in startup founders
(14:32) The role of pattern recognition in startup success
(16:24) Creating movements and attracting early believers
(21:12) Importance of inflection points in startup success
(25:00) Non-obvious inflection points and backcasting
(29:52) The formula of inflection plus insight
(32:00) Non-consensus and right: key to venture success
(34:52) Venture capital and risk-taking
(38:00) Inflections and protecting unconventional ideas
(41:00) Patience as a form of arbitrage in venture investing
(45:00) Insights from Annie Duke on decision-making in venture capital
Iâd love to know what you took away from this conversation with Mike. Follow me @SamirKaji and give me your insights and questions with the hashtag #ventureunlocked. If youâd like to be considered as a guest or have someone youâd like to hear from (GP or LP), drop me a direct message on Twitter.
Podcast Production support provided by Agent Bee
This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit ventureunlocked.substack.com -
Follow me @samirkaji for my thoughts on the venture market, with a focus on the continued evolution of the VC landscape.
We're joined by TX Zhuo, Co-Founder and General Partner of Fika Ventures. His tech career began in college when he started an online textbook marketplace.
After working at McKinsey and as a CFO at an operating company, TX joined Innovation Endeavors. He then co-founded Karlin Ventures, which was backed by a single family office. In 2016, he co-founded Fika Ventures, which now has a 10-person team and has raised three funds.
During the pod, we discussed the culture needed to run a successful VC firm, how they've thought about innovation, LP fundraising as a first-time fund, and how they think about valuation methodology.
About TX Zhuo:TX Zhuo is a General Partner at Fika Ventures, a boutique seed fund in Los Angeles investing in data, AI, and automation technologies. He co-founded Fika Ventures in August 2016 and has been dedicated to solving systemic problems through innovative platforms ever since.
Prior to this, he was the Managing Partner at Karlin Ventures from 2012 to 2016, focusing on early-stage investments in various sectors including education technology, digital media, and healthcare. Before Karlin Ventures, TX worked at Innovation Endeavors from October 2010 to May 2012, managing deal screening and outreach initiatives. He also served as the CFO of Lit Motors, an electric vehicle startup, after his tenure at McKinsey & Company from August 2008 to August 2010, where he contributed to financial services and consumer goods projects. TX's entrepreneurial journey began in college when he founded and successfully sold an online textbook marketplace, EMT Alliance, which had significant sales and a cost-efficient distribution center in India.
He holds an MBA from Stanford Graduate School of Business and a Bachelor's degree in Mathematics and Economics from Wesleyan University.
In this episode we discuss:
(01:32) TX Zhuoâs Path to Venture Capital(03:04) Inspired by his own experiences and wanted to create a more institutional platform with Fika Ventures, focusing on supporting seed-stage entrepreneurs with a peer-like approach(05:12) The importance of being founder-first and not imposing advice, adopting a humble approach when communicating with founders(07:14) The difficulties raising the first fund, pitching to 700 investors to get 105 commitments, and learned the importance of storytelling and perseverance(12:49) Radical transparency and conservative financial prudence with LPs, focusing on over-communicating and being proactive about potential issues(16:14) The need to focus on high-impact areas like customer introductions, talent, and follow-on investors, emphasizing trust and being an extension of the management team(19:22) Why TX conducts an expectation-setting exercise early in the relationship with founders, focusing on under-promising and over-delivering to maintain trust and satisfaction(22:39) Navigating 2021's Rapid Fundraising Environment(25:09) How to handle tough conversations with Founders(27:56) Fikaâs unique advisor model the uses 73 advisors to support functional and domain-specific needs, and created the Fika Fellows program to up-level senior hires within portfolio companies(34:15) How Fika uses a pod system for focused research and decision-making, requiring a high bar of consensus and a structured voting system for investment decisions(31:39) Why TX screens for a service mentality and resourcefulness in new hires, ensuring they align with Fika's values and ethos through practical evaluations and interactions with current founders(37:43) TXâs Advice for Aspiring VCs: the importance of consistency in approach and team cohesion, advocating for treating every entrepreneur consistently and building a strong, unified brand(39:13) The importance of a consistent experience for entrepreneurs interacting with Fika, valuing a strong apprenticeship model and internal trust among team members.
Iâd love to know what you took away from this conversation with TX. Follow me @SamirKaji and give me your insights and questions with the hashtag #ventureunlocked. If youâd like to be considered as a guest or have someone youâd like to hear from (GP or LP), drop me a direct message on Twitter.
Podcast Production support provided by Agent Bee
This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit ventureunlocked.substack.com -
Follow me @samirkaji for my thoughts on the venture market, with a focus on the continued evolution of the VC landscape.
We are back with another LP-focused episode with Michael Kim, Founder of Cendana Capital. Michael shares how he started Cendana around his thesis (at the time very early) of backing small, emerging managers. This led to early investments in firms such as IA ventures, Forerunner, and Lerer Hippeau.
During our discussion, we chatted about what qualities heâs seen in great emerging managers as well as his thoughts on portfolio construction.
We also get into the challenges of raising funds today and why the secondary market will a critical component of venture moving forward.
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About Michael Kim:Michael Kim is the Founder of Cendana Capital, a San Francisco-based firm that specializes in investing in very early-stage VC funds globally. Founded in 2010, Cendana Capital has over $2B in AUM.
Prior to Cendana, Michael served as a General Partner at Rustic Canyon Partners where he contributed to the firm's growth and investment strategies. He also was a Board Member of the San Francisco Employees' Retirement System (SFERS), and an Investment Banker at Morgan Stanley focusing on Technology M&A.
Michael holds an MBA in Finance from The Wharton School, an MSFS in International Economics from Georgetown University's Walsh School of Foreign Service, and an AB in International Relations from Cornell University. Michael is a founding board member of the Wikimedia endowment, which supports Wikipedia.
In this episode, we discuss:
(02:49) Michaelâs time at Morgan Stanley's tech M&A group in the 90s
(04:11) Cendanaâs launch and how it took two years to raise the first fund
(06:16) Seed stage investing has become like early stage venture.
(07:07) The importance of fund managers getting large ownership early
(09:50) Why grit, determination, and hustle are crucial and domain expertise and contrarian thinking are vital
(12:00) Pre-seed is the new seed and rounds have gotten bigger
(14:00) High integrity fund managers need 12-15% ownership
(16:12) Pre-seed managers work with potential entrepreneurs before they start a company
(18:00) Founders now raise more initially for a longer runway
(20:00) How fund size affects ownership and return potential
(23:00) Why smaller funds often outperform larger ones
(25:17) What changes when making the leap from small to large checks
(27:00) The importance of network strength for fund managers' success
(33:00) Fund managers need to explain their investment decisions well
(37:15) Fund managers need to be flexible but transparent
(39:00) The importance of trust and transparency for long-term relationships.
(42:00) Seed funds are best positioned for secondaries
(45:21) The potential rise in secondary market deals
(48:00) Tourist fund managers have mostly exited the market
(50:00) The next few years should be great for venture investments
Iâd love to know what you took away from this conversation with Michael. Follow me @SamirKaji and give me your insights and questions with the hashtag #ventureunlocked. If youâd like to be considered as a guest or have someone youâd like to hear from (GP or LP), drop me a direct message on Twitter.
Podcast Production support provided by Agent Bee
This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit ventureunlocked.substack.com -
Follow me @samirkaji for my thoughts on the venture market, with a focus on the continued evolution of the VC landscape.
We are back with Amy Saper, partner at Uncork Capital. Amy shares her journey from Silicon Valley operator at Twitter and Stripe to venture capitalist. She talks about Uncorkâs strategy, including its recent $200 million seed fund and $200 million opportunity fund, and how the firm balances growth with specialization.
Investors will find her perspective on non-consensus investing particularly compelling, as she outlines how she evaluates technical teams and market potential. Successful founders attract and develop talent. Finally, she reflects on her move to Uncork and shares her key learnings as an institutional investor.
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About Amy Saper:Amy Saper is a Partner at Uncork Capital, where she invests in seed-stage B2B SaaS, API-first, and fintech companies. Previously, she spent four years as an early-stage partner at Accel where she led seed and Series A investments in companies such as Gamma, Beam, Complete, and Sprinter Health.
Prior to her venture career, she worked at Stripe, Uber, and Twitter launching products, business lines and new markets, in product marketing, product management, business development and international expansion roles.
She received her BS and MBA from Stanford University.
In this episode, we discuss:
(02:27) Amy discusses her background, including her experience at Twitter, Stripe, and her transition to venture capital
(08:00) Joining Uncork Capital, the firm's history, and the recent funds they have raised
(09:14) Comparing the culture of a firm with that of a startup and discusses the importance of sticking to the core focus
(15:17) How Uncork Capital decided on its fund strategy and the balance they struck between fund size and being lead investors
(18:28) Product market fit in Venture firm and how she delivers value to founders
(24:27) How constraints can foster creativity and the importance of staying focused in a capital-constrained market
(28:49) The challenges startups face in raising Series A funding and the importance of balancing focus and growth.
(34:37) Non-Consensus investing and what she looks for in founders
(37:17) The importance of a founder's ability to attract and develop talent and shares her thoughts on whether this can be learned
(42:13) What attracted her to Uncork Capital and how the team dynamics influenced her decision
(45:40) The one thing she knows now that she wishes she knew when she started investing
Iâd love to know what you took away from this conversation with Amy. Follow me @SamirKaji and give me your insights and questions with the hashtag #ventureunlocked. If youâd like to be considered as a guest or have someone youâd like to hear from (GP or LP), drop me a direct message on Twitter.
Podcast Production support provided by Agent Bee
This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit ventureunlocked.substack.com -
Follow me @samirkaji for my thoughts on the venture market, with a focus on the continued evolution of the VC landscape.
Today we have another version of Venture Unlocked shorts, and this time it will be focused on topics within the GP/LP world.
Joining me again is Meghan Reynolds, who leads capital formation at Altimeter Capital.
This time we discuss the significant liquidity challenges in the venture capital market, focusing on the concerns of LPs about funding future capital calls and the longer wait times for returns. With a decline in public offerings and exits, LPs and GPs are now turning to alternative strategies such as strip sales and GP-led secondaries. We highlight the need for GPs to establish clear liquidity management as the dynamics of the industry continue to change.
If youâre a VC investor, then Iâm sure you already know about Sydecar, the go-to platform for emerging VCs to manage their SPVs and funds. Sydecar is on a mission to make private markets more accessible, transparent, and liquid by standardizing how investment vehicles are created and executed. Their powerful software allows VCs to launch SPVs and funds instantaneously, track funding in real time, and offer hassle-free opportunities for early liquidity.
Whether youâre syndicating your first or fiftieth deal, Sydecar acts as your silent operating partner, handling all back-office functions in a single place. Sydecar always has your back, so that you never have to worry about chasing subscription docs, lost wires, or late K-1s.
With all the recent ups and downs in the private markets, the last thing you want to worry about is whether your back office is operating smoothly. Sydecar's responsive and proactive customer support team is there to assist, helping you build trust with your investors and tackle the challenges of building your firm.
Visit sydecar.io/ventureunlocked to learn more.
About Meghan Reynolds:Meghan Reynolds is Partner and Head of VC Capital Formation and Fundraising for Altimeter, a lifecycle technology investment firm. Prior to joining Altimeter, Meghan was Managing Partner and Co-head of Fundraising at TPG. She began her career and spent nearly a decade in the Investment Management Division of Goldman Sachs.
Meghan graduated from the University of Notre Dame.
In this episode, we discuss:
(02:00) The current state of the venture capital market and LP perspectives on liquidity and the impact of market resets on traditional exit opportunities like IPOs and M&As
(04:00) Liquidity and the challenges for LPs in funding upcoming capital calls due to increased venture activity and the need to adjust liquidity timeline expectations
(09:00) The complexities of exit strategies and the necessity for alignment between GPs and LPs on exit timing
(12:57) Using âStrip salesâ as a liquidity management strategy are detailed, where a portion of a fundâs assets are sold to secondary buyers, and practical examples of how this strategy has been effectively implemented
(21:56) The need for venture capital to adopt more institutional and LP-friendly practices akin to the private equity evolution post-2008, driven by current fundraising challenges that compel VC funds to innovate in liquidity management and LP relationships
Iâd love to know what you took away from this conversation with Meghan. Follow me @SamirKaji and give me your insights and questions with the hashtag #ventureunlocked. If youâd like to be considered as a guest or have someone youâd like to hear from (GP or LP), drop me a direct message on Twitter.
Podcast Production support provided by Agent Bee
This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit ventureunlocked.substack.com -
Follow me @samirkaji for my thoughts on the venture market, with a focus on the continued evolution of the VC landscape.
This week we're doing another special roundtable discussion with a focus on the seed stage market. Joining us are Jenny Fielding of Everywhere Ventures, Kirby Winfield of Ascend, and Nate Williams of UNION Labs.
This whole conversation was focused on seed stage investing. We spent most of our time discussing how the market reset affects seed-stage decision-making, fund sizing, and reserve strategies. We also touched on what they are seeing and hearing from LPs that invest in seed funds.
If youâre a VC investor, then Iâm sure you already know about Sydecar, the go-to platform for emerging VCs to manage their SPVs and funds. Sydecar is on a mission to make private markets more accessible, transparent, and liquid by standardizing how investment vehicles are created and executed. Their powerful software allows VCs to launch SPVs and funds instantaneously, track funding in real time, and offer hassle-free opportunities for early liquidity.
Whether youâre syndicating your first or fiftieth deal, Sydecar acts as your silent operating partner, handling all back-office functions in a single place. Sydecar always has your back, so that you never have to worry about chasing subscription docs, lost wires, or late K-1s.
With all the recent ups and downs in the private markets, the last thing you want to worry about is whether your back office is operating smoothly. Sydecar's responsive and proactive customer support team is there to assist, helping you build trust with your investors and tackle the challenges of building your firm.
Visit sydecar.io/ventureunlocked to learn more.
About Jenny Fielding:Jenny Fielding is the Co-Founder and Managing Partner of Everywhere Ventures. She is one of the most active global pre-seed investors, having invested in 300+ companies as the first money in. Jenny has built a thriving community of 500+ founders and operators who help source, diligence, and invest in the next generation of startups across 3 core verticals: money, health, and work.
Prior to Everywhere, Jenny spent 7.5 years as the Managing Director of Techstars where she invested in a portfolio of companies with a current market cap over $10B. Jenny is a 2x founder, a lawyer by training, and an adjunct professor at Columbia University and Cornell Tech.
About Kirby Winfield:Kirby Winfield is the Founding General Partner at Ascend.vc, the most prolific pre-seed stage venture fund in the Pacific Northwest.
Kirby has been operating and investing in Artificial Intelligence and Machine Learning since the 1990s. His first startup pioneered the use of semantic AI for web search. He advised the Allen Institute of Artificial Intelligence on the launch and growth of its highly regarded Ai2 Incubator program, and has backed 30+ AI startups as a VC.
Early in his career, Kirby was a founding team member and operating executive at back-to-back tech IPOs, with Go2Net and Marchex. He is also a two-time venture capital-backed CEO, with AdXpose (DFJ, Ignition) acquired by comScore, and Dwellable (Maveron, VersionOne) acquired by HomeAway.
About Nate Williams:Nate Williams is the co-Founder and Managing Partner of DeepTech seed fund UNION Labs Ventures and formerly an Entrepreneur-in-Residence (EIR) at Kleiner Perkins focused on opportunities in Climate, PropTech, and Mobility. Nate's track record includes senior leadership experiences executing through startup, growth and turnaround stage culminating in successful exits for 4Home (to Motorola '10), Motorola Mobility (to Google '12), Motorola Home (to ARRIS '13) and August Home (to Assa Abloy '17).
Prior to Kleiner Perkins, Nate was CRO & Head of Platform PM at August Home, Inc. a leader in Smart Home Access where he secured August commercial growth with market leaders and integration partners including Airbnb, Wal-Mart, Amazon, Honeywell, Comcast, and Google/Nest. Nate was also Senior Director of Marketing & Business Development at Google subsidiary Motorola Mobility (following their acquisition of 4Home where he was CMO & Head of Business). Earlier in his career, he was an Analyst in the Digital Home Group of Intel Corp.
Nate earned an MBA from The UCLA-Anderson School of Management and a Bachelors in Communication Science from The University of Connecticut. He is named in several Communications Infrastructure patents, entrepreneurial, and comfortable building cross-functional teams introducing products under significant market uncertainty.
In this episode, we discuss:
(03:09): The challenges first-time founders face, especially in fundraising and navigating the current economic climate
(04:17): Trends in pre-seed and seed round sizes including the reasons behind increases and their impact on startups
(06:52): The importance of a founder's ability to fundraise in the current economic environment is stressed as critical for startup success
(08:21): Venture Capitalists' adjusted expectations for startups progressing from seed to Series A
(11:59): The need for founders to adapt their strategies in response to market changes, moving towards building sustainable businesses
(16:21): The effects of significant valuation step-ups during seed rounds on the investment ecosystem
(20:39): Current trends in seed valuations and round sizes and implications for the startup and investment community
(25:52): How seed investors are adapting their reserve strategies to better support startups through to Series A rounds and beyond
(27:09): The impact of the funding environment on LPs investment decisions and strategies
(34:43): The challenges GPs face in fundraising efforts are explored, including navigating expectations and market conditions
Iâd love to know what you took away from this conversation with Jenny, Kirby, and Nate. Follow me @SamirKaji and give me your insights and questions with the hashtag #ventureunlocked. If youâd like to be considered as a guest or have someone youâd like to hear from (GP or LP), drop me a direct message on Twitter.
Podcast Production support provided by Agent Bee
This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit ventureunlocked.substack.com -
Follow me @samirkaji for my thoughts on the venture market, with a focus on the continued evolution of the VC landscape.
We are thrilled to bring you a conversation with David Sacks, Founder and Partner of Craft Ventures. Based in San Francisco, Craft was founded in 2017 and currently has over 3 billion in assets under management.
Across the last three decades, David has been incredibly influential as an investor, entrepreneur, and public thought leader. When starting Craft, he was able to draw from his deep operating background, having worked as an early leader at PayPal, and then later founding Yammer, which he sold to Microsoft for $1.2 Billion.
He is also one of the hosts of the All In Podcast, one of the most listened podcasts in the world.
We had a wide-ranging dialogue that took us through the evolution of Craft Ventures from its initial days to today, the strategic decision-making behind scaling fund sizes and team growth, and his overall views on the current outlook of venture capital.
If youâre a VC investor, then Iâm sure you already know about Sydecar, the go-to platform for emerging VCs to manage their SPVs and funds. Sydecar is on a mission to make private markets more accessible, transparent, and liquid by standardizing how investment vehicles are created and executed. Their powerful software allows VCs to launch SPVs and funds instantaneously, track funding in real time, and offer hassle-free opportunities for early liquidity.
Whether youâre syndicating your first or fiftieth deal, Sydecar acts as your silent operating partner, handling all back-office functions in a single place. Sydecar always has your back, so that you never have to worry about chasing subscription docs, lost wires, or late K-1s.
With all the recent ups and downs in the private markets, the last thing you want to worry about is whether your back office is operating smoothly. Sydecar's responsive and proactive customer support team is there to assist, helping you build trust with your investors and tackle the challenges of building your firm.
Visit sydecar.io/ventureunlocked to learn more.
About David Sacks:David Sacks is Co-Founder and Partner at Craft. He has been a successful founder and investor for over two decades, building and investing in some of the most iconic companies in tech. David has invested in over 20 unicorns, including Affirm, AirBnB, Bird, ClickUp, Eventbrite, Facebook, Houzz, Lyft, OpenDoor, Palantir, Postmates, Reddit, Slack, SpaceX, Twitter, Uber, and Wish.David first got involved in the technology industry in 1999 when he joined early-stage startup Confinity, later renamed PayPal. Serving as the companyâs first product leader and then as COO, David built and ran many of the companyâs key teams, including product management and design, sales and marketing, business development, international, customer service, fraud operations, and HR. He pivoted the product from beaming money on Palm Pilots to emailing money on the web, and introduced the business model. When the company IPOâd on the Nasdaq in 2002, David was 29 â the median age of the âPayPal Mafiaâ executives listed on the S-1. PayPal was later acquired by eBay and eventually spun back out into a publicly traded company (under ticker symbol PYPL).David is well-known in Silicon Valley for his product acumen. AngelListâs Naval Ravikant has called David âthe worldâs best product strategist.â And has received acclaim as one of the Besties on the All In Podcast.
In this episode, we discuss:
(02:56) David Sacks discusses transitioning from being an entrepreneur with experiences at PayPal and Yammer to founding Craft Ventures, emphasizing the focus on SaaS and leveraging operational expertise to support startups.
(04:56) The growth of Craft Ventures from its initial fund to managing $3.5 billion, focusing on SaaS and marketplaces, and how fund size affects strategy
(08:15) Portfolio construction and the strategic shift towards reserving more for follow-ons to maintain company ownership and align fund size with venture focus
(10:10) The VC market's evolution shifting towards sustainable investment strategies following the 2020-2021 bubble and its correction.
(13:39) Advice for entrepreneurs to focus on capital efficiency and realistic growth expectations due to the changing investment landscape
(17:33) Predicting a continued reset in valuations and funding availability in 2024, and how startups can adjust their strategies accordingly
(34:05) Parallels and distinctions between running a venture firm and a startup, emphasizing the importance of creating a stable, transparent environment at Craft Ventures
(36:10) The significance of firm culture and talent acquisition, focusing on collective success and providing transparent, valuable support to portfolio companies
Iâd love to know what you took away from this conversation with David. Follow me @SamirKaji and give me your insights and questions with the hashtag #ventureunlocked. If youâd like to be considered as a guest or have someone youâd like to hear from (GP or LP), drop me a direct message on Twitter.
Podcast Production support provided by Agent Bee
This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit ventureunlocked.substack.com -
Follow me @samirkaji for my thoughts on the venture market, with a focus on the continued evolution of the VC landscape.
This week we are pleased to be joined by Adam Bain of 01 Advisors, a San Francisco-based firm with nearly $1 billion under management.
Adam and his partners, including Dick Costolo, have taken a very different approach to the venture model, drawing from their experiences as operators. While Adam was COO and Dick was CEO at Twitter, they helped the company scale from zero to in revenue as fast as any consumer tech company in history. During this time, they spent a significant amount of time with the late Bill Campbell, the legendary CEO coach who helped inspire the foundation for 01 Advisors.
Since founding the firm in 2018, they have a uniquely focused approach to venture coaching and unlike other Series B and later VCs, they do not take board seats. We went through the why of this model. Along with topics such as the transition from operating to investing. And the future of potentially using models to determine founder archetypes.
If youâre a VC investor, then Iâm sure you already know about Sydecar, the go-to platform for emerging VCs to manage their SPVs and funds. Sydecar is on a mission to make private markets more accessible, transparent, and liquid by standardizing how investment vehicles are created and executed. Their powerful software allows VCs to launch SPVs and funds instantaneously, track funding in real time, and offer hassle-free opportunities for early liquidity.
Whether youâre syndicating your first or fiftieth deal, Sydecar acts as your silent operating partner, handling all back-office functions in a single place. Sydecar always has your back, so that you never have to worry about chasing subscription docs, lost wires, or late K-1s.
With all the recent ups and downs in the private markets, the last thing you want to worry about is whether your back office is operating smoothly. Sydecar's responsive and proactive customer support team is there to assist, helping you build trust with your investors and tackle the challenges of building your firm.
Visit sydecar.io/ventureunlocked to learn more.
About Adam BainAdam is a Co-Founder and Managing Partner for 01 Advisors, a venture & advisory firm that helps founders go from building a product to building a company with operational expertise.He was previously the COO for Twitter and a Board Director for Opendoor.
In this episode, we discuss:
(03:01) Adam shares his journey from Twitter to founding 01 Advisors, focusing on the transition from advertising and social media to a venture model that combines investing and advising
(05:00) The unique backgrounds of 01 Advisors' partners in scaling companies from zero to significant revenues, showcasing a rare collective experience in tech leadership
(08:01) The venture coaching approach at 01 Advisors that was inspired by Bill Campbell
(14:35) Why 01 Advisors chooses not to take board seats, aiming to offer more effective and unrestricted guidance to CEOs
(18:14) Helping CEOs appoint seasoned operators to board positions, ensuring comprehensive support without direct board involvement
(22:08) 01 Advisors' focus on Series B investments, aligning their operational expertise with companies at a pivotal growth stage
(24:16) 01's strategy of a concentrated portfolio to deeply engage and support their investments, contrary to the broader trend towards more extensive portfolios.
(27:25) Diligence process for revenue streams and operational dynamics, aiming to identify areas where 01 can significantly impact growth.
(29:00) The use of cognitive psychology for deeper CEO assessments post-investment, aiming to tailor support strategies to each leader's unique strengths and challenges
(31:16) The early successes of this cognitive approach
(34:42) The transition from high level operator to investor
(39:58) Why heâs excited continuous intellectual growth and the diverse learning experiences venture capital offers
(43:14) The market in 2024 is the Super Bowl moment for 01
Iâd love to know what you took away from this conversation with Adam. Follow me @SamirKaji and give me your insights and questions with the hashtag #ventureunlocked. If youâd like to be considered as a guest or have someone youâd like to hear from (GP or LP), drop me a direct message on Twitter.
Podcast Production support provided by Agent Bee
This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit ventureunlocked.substack.com -
Follow me @samirkaji for my thoughts on the venture market, with a focus on the continued evolution of the VC landscape.
We have a conversation with Mitchell Green, Founder and Managing Partner at Lead Edge Capital.
With offices in New York and Santa Barbara, the firm has over $5B in Assets under management and specializes in helping growth-stage companies scale.
The firm has an interesting model that combines elements of PE, growth, and an active network of over 700 LPs to build a very powerful moat.
I was really interested in several business components, especially the LP base's strategic nature and the programmatic way they evaluate companies.
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About Mitchell Green:Mitchell Green is the Founder and Managing Partner at Lead Edge Capital, a $5B growth equity firm investing in software, internet, and tech-enabled services businesses globally. Mitchell oversees the fundâs global activities and has led several of the fund's largest investments, including Alibaba Group, Asana, Bumble, FIGS, Grafana, SignalSciences, Spotify, Toast, Uber, and Wise. His career began with roles on the investment teams at Bessemer Venture Partners and Eastern Advisors. Mitchell is a former nationally ranked alpine ski racer and currently serves on the boards of the U.S. Ski & Snowboard Foundation and the Laguna Blanca School in Santa Barbara, CA.Mitchell holds a B.A. in Economics from Williams College and an M.B.A. in Marketing from the Wharton School at the University of Pennsylvania.
In this episode, we discuss:
(01:38) Shares the origin story of Lead Edge Capital, reflecting on the early experiences before 2009, and the influence of Bessemer's deal-sourcing approach of cold calling and direct outreach.
(09:57) The value of being his own boss and learning from failures
(12:35) Building a team for outbound cold calling to find unique investment opportunities.
(15:27) Leveraging LPs in the due diligence process for valuable insights and validation of potential investments
(17:21) Creating a community among LPs where engagement and assistance are core expectations
(20:55) The resilience and opportunistic nature of high-net-worth individuals during market downturns
(21:59) The "moneyball" approach to investment criteria, prioritizing revenue, growth, gross margins, and capital efficiency
(26:00) A success story of investing in a rapidly growing, COVID-enabled electronic signatures company
(30:32) Many companies raising venture capital should not exist
(36:09) The need for persistence to get into the best companies
(38:57) Trusting your instincts and the strategic advantage of being contrarian in investment
Iâd love to know what you took away from this conversation with Mitchell. Follow me @SamirKaji and give me your insights and questions with the hashtag #ventureunlocked. If youâd like to be considered as a guest or have someone youâd like to hear from (GP or LP), drop me a direct message on Twitter.
Podcast Production support provided by Agent Bee
This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit ventureunlocked.substack.com -
Follow me @samirkaji for my thoughts on the venture market, with a focus on the continued evolution of the VC landscape.
Today we have another version of Venture Unlocked shorts, and this time it will be focused on topics within the GP/LP world.
Joining me for this around-the-water-cooler recurring series is Meghan Reynolds, who leads capital formation at Altimeter Capital.
Meghan recently attended iConnections in Miami, one of the biggest global capital intro summits in the world, which served as inspiration for this episode. We discussed what she observed during the summit, including how LPs are thinking about early-stage and late VC, and the place for venture overall in private portfolios.
Hope you enjoy our episode!
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About Meghan Reynolds:Meghan Reynolds is Partner and Head of VC Capital Formation and Fundraising for Altimeter, a lifecycle technology investment firm. Prior to joining Altimeter, Meghan was Managing Partner and Co-head of Fundraising at TPG. She began her career and spent nearly a decade in the Investment Management Division of Goldman Sachs.
Meghan graduated from the University of Notre Dame.
In this episode, we discuss:
(02:11) Report from the iConnections summit in Miami and what it means for the VC industry
(06:38) The complex dynamics of fundraising in the current venture capital landscape
(09:49) The recalibrated expectations among LPs with a strategic emphasis on seed and Series A investments as a method to hedge against portfolio volatility
(17:01) Forecast for a tough adjustment period for Unicorns and the venture capital ecosystem, with some hope on the horizon
(19:00) Challenges posed by multiple compression rounds and the reality for companies looking for exits
(21:11) The long journey for VC-backed companies in navigating valuation adjustments and exit strategies, with an increased reliance on the secondary market for liquidity
(23:12) The extended impact of the substantial funding raised in 2021, adding complexity to the venture capital environment
Iâd love to know what you took away from this conversation with Meghan. Follow me @SamirKaji and give me your insights and questions with the hashtag #ventureunlocked. If youâd like to be considered as a guest or have someone youâd like to hear from (GP or LP), drop me a direct message on Twitter.
Podcast Production support provided by Agent Bee
This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit ventureunlocked.substack.com -
Follow me @samirkaji for my thoughts on the venture market, with a focus on the continued evolution of the VC landscape.
We have a conversation with Samir Kaul from Khosla Ventures.
Founded in 2004, Khosla is one of the largest and most well-known venture capital firms in the world and led by legendary investor and entrepreneur Vinod Khosla. The firm is known for investing in companies that are solving very large and complex problems. The firm currently has over $15B in AUM investing in companies such as Square, Doordash, Stripe, OpenAI, and Impossible Foods.
During the episode, we covered investing across cycles, the market insanity we saw pre-2022, and how they approach both building a firm and investing.
Note: We recorded this prior to the news that Keith Rabois was rejoining the firm, hence no mention of it during the discussion.
About Samir Kaul:Samir Kaul is a Founding Partner and Managing Director at Khosla Ventures, and he specializes in investments across health, sustainability, food, and advanced technology sectors. His notable investments leading to successful exits through IPOs or acquisitions include companies like Vicarious Surgical, View, Guardant Health, Nutanix, Oscar, Quantumscape, Granular, SLD, NanoH2O, Iora Health, and Raxium. Additionally, he has played a pivotal role in investments in transformative startups such as Impossible Foods, Mojo Vision, Primer, and many others, demonstrating a keen eye for identifying and nurturing groundbreaking technologies and business models.
Before joining Khosla Ventures, Samir's career was marked by significant achievements in biotechnology and venture capital at Flagship Ventures and the Institute for Genomic Research, where he contributed to pioneering efforts in genomics and biotech startups like Helicos BioSciences and Codon Devices. His work in sequencing the Arabidopsis genome set new standards for efficiency and impact in the field of genomics. Beyond his professional endeavors, Samir is deeply committed to philanthropy, serving on the boards of the Tipping Point Community, UCSF Benioff Childrenâs Hospital, and the US Ski and Snowboard Association, showcasing his dedication to societal betterment and healthcare.
In this episode, we discuss:
(01:45) Samirâs career path to venture
(05:15) Traits of Successful Entrepreneurs
(06:04) Building Long-term Companies
(08:49) Venture Capital's Role Beyond Funding
(12:13) Evolution of Venture Capital
(16:15) AI and Tech Super Cycles
(22:24) Learning from Past Mistakes
(28:03) Investing in High Conviction Trends
(32:33) Firm Culture and Decision Making
(37:17) Hiring and Building a VC Team
(39:12) Advice to Younger Self
Iâd love to know what you took away from this conversation with Samir. Follow me @SamirKaji and give me your insights and questions with the hashtag #ventureunlocked. If youâd like to be considered as a guest or have someone youâd like to hear from (GP or LP), drop me a direct message on Twitter.
Podcast Production support provided by Agent Bee
This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit ventureunlocked.substack.com -
Follow me @samirkaji for my thoughts on the venture market, with a focus on the continued evolution of the VC landscape.
This is our second episode of Venture Unlocked Shorts where we highlight a specific point of view of our guest. These points of view may come through a tweet, an article, or an offline conversation, and our goal is to unpack these interesting views in a short conversation.
In this weekâs Venture Unlocked Shorts, weâre joined by Aileen Lee of Cowboy Ventures. Aileen wrote a now famous article in 2013 where she coined the term Unicorn to describe technology companies that reach a billion-dollar valuation within 10 years of founding.
Recently she and her team published a successor article looking at the last 10 years of these Unicorns, and what they believe will happen in the future.
It was fun to unpack the articles through this discussion, and I think youâll enjoy hearing her findings and thoughts on what we may see in the future.
About Aileen Lee:Aileen is the Founder and Managing Partner of Cowboy Ventures, a firm that invests in early-stage enterprise and consumer startups. With over two decades of experience in venture capital, she has a history of involvement from seed stage to beyond, including her time at Kleiner Perkins Caufield & Byers.
Before her venture capital career, Aileen held roles at Gap Inc. and started at Morgan Stanley. She holds degrees from MIT and HBS. Additionally, she co-founded All Raise and sits on the board of Castilleja School.
Aileen is known for introducing the term âunicornâ in the context of business. She has been recognized in Time 100's most influential people and has appeared on the Forbes Midas List.
In this episode, we discuss:
(02:30) Marking a decade of the term Unicorn and how many Unicorns have been created in the last ten years
(05:46) The impact of macroeconomic factors like zero interest rate policies on the venture capital industry
(06:37) Aileen describes the situation as a 'perfect storm' of factors leading to a surge of capital in the industry
(08:18) The future of unicorns in the venture capital landscape
(15:46) What happened in 2021?
(17:13) The importance of founders understanding the business model of the funds they are engaging with
(19:00): Aileen predicts a mix of outcomes for startups and whats ahead
Iâd love to know what you took away from this conversation with Aileen. Follow me @SamirKaji and give me your insights and questions with the hashtag #ventureunlocked. If youâd like to be considered as a guest or have someone youâd like to hear from (GP or LP), drop me a direct message on Twitter.
Podcast Production support provided by Agent Bee
This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit ventureunlocked.substack.com -
Follow me @samirkaji for my thoughts on the venture market, with a focus on the continued evolution of the VC landscape.
As we continue to grow Venture Unlocked, we are now going to release short conversations highlighting a specific point of view of our guest. These points of views may come through a tweet, an article, or conversation, and our goal is to unpack these interesting views in short form.
Our first guest in this format is Ed Suh Founder and Managing Partner of Alpine VC.
Ed recently penned a tweet that I thought was interesting around the evolution of venture and the parallels to the industry to other asset classes such as private equity and hedge. I wanted to go deeper into his tweet, which we did during our short conversation. Hope you enjoy!
About Ed Suh:Ed Suh is the Founder and Managing Partner of Alpine Ventures, a San Francisco based technology venture capital firm. Ed previously led seed, early stage, and growth stage investments in Silicon Valley for nearly a decade across two prominent multi-stage venture firms: Goodwater Capital, a spin-out of Kleiner Perkins and Maverick Capital with over $5B of AUM, and Redpoint Ventures, a leading Silicon Valley venture firm with a 20+ year track record of leading consumer and enterprise software investments. Ed has backed multiple unicorn startups including Monzo, Everlywell, Jasper, Greenlight, and Stash. Previously, Ed was Head of Business Operations at Stitcher, the leading independent podcasting app, acquired by SiriusXM for $325 million and backed by Benchmark, NEA, and New Atlantic Ventures, as well as an investment banker at Merrill Lynch focused on technology M&A. Ed was also a member of the original growth team at Facebook, and a software engineer at Plaxo and Citadel Investment Group.Ed earned MS and BS degrees in Computer Science from Stanford University, with a specialization in Artificial Intelligence.
In this episode, we discuss:
(01:26) Discussion on venture capital becoming mainstream and its comparison to other asset categories.
(03:01) Evolution of venture capital, industry scaling, and differentiation challenges.
(04:42) Venture capital's evolution in comparison to private equity and future implications.
(06:44) Fragmentation in venture capital and its impact on alpha and risk profiles.
(09:37) Dynamics between large venture capital funds and emerging managers.
(11:51) Further insights into venture capital evolution, manager selection, and fund roles.
(13:57) Venture capital's current stage in its evolutionary cycle and future themes.
Iâd love to know what you took away from this conversation with Ed. Follow me @SamirKaji and give me your insights and questions with the hashtag #ventureunlocked. If youâd like to be considered as a guest or have someone youâd like to hear from (GP or LP), drop me a direct message on Twitter.
Podcast Production support provided by Agent Bee
This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit ventureunlocked.substack.com - Mostrar más
