Private one on one chats over dinner and generally more insightful than listening to talks in conferences.
Areas of focus
Core areas of focus
Exploratory areas for growth
- healthcare technology
Starts building a model about a space before diving in. After diving in with investments further build out the model. Coefficients for the model include areas:
- Team processes
- Product performance metric
- Market growth
Thoughts on FinTech
Betting on consumerization of the space as opposed to enterprise. Recent move by Charles Schwarb will not likely impact revenue of consumer apps.
Looking for startups focused on the vector that will get them into consumer wallets as well as grow to occupy a much larger portion of the consumer wallet.
When baby happens, need to get baby insurance. Then next would be Will. And then next…
Hedge funds are not suitable for VC investments. Hedge fund managers should look for other types of investors.
CEOs has not much time. Prefer to high a company that is specialized in acquiring security solutions and delegate the problem to them instead. If shit hits the fan, gets to delegate blame. Companies do not remove security solutions but keep on adding on new ones. Its like a bandaid approach. Removing solutions runs the risk of causing bleeding, very dangerous. The recurring revenue is very lucrative.
When it comes to security is not a question of ability to deeply penetrate a system. Its a question of willingness to pay to penetrate the said system.
On machine learning
On public web data, building model based that is based around proven correlations – CxOs tend to leave a company before shit happens.
On offline data, putting in boxes in data centers to track traffic volume in and out of data centers to approximate demands on another company’s servers
Words on the street
VCs are increasingly concerned about governance. WeWork’s founder have basically offload USD500million dollars on the secondary market to other hedge fund managers.
If the core economic of the business does not work before funding, it will only get worst after funding. This is because the company will need to clear an even higher valuation before new investors will be profitable.
On board operations
Having a lot of big brand name VCs does not necessarily mean that you will have a good board. The board needs to be well round. The founder needs to be able to align all the members of the board.
Expectation of the fund
Calibrate the needs of the needs of the corporate and the needs of the founders.
Expect governance to be intact. For the founders to truly execute upon what they sold when they raised the money.
Would be happy to even just double their money.