20VC: GV's Tom Hulme on Why Investing in Foundation Models is like Investing in "Power Stations", The Conventional Wisdom in VC that is BS & Lessons from a 24x Angel Track Record, 255x on Robinhood and Making Billions on Uber
The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
Episode Insights
See all- Venture capital experience is akin to being a founder on antidepressants, where VCs experience the emotional highs and lows of a startup across a portfolio of companies without the extreme peaks and valleys.
- It's important for founders to select the right type of investor, as the wrong choice—a passive investor who believes they are smart and interferes—can be detrimental to the startup.
- GV promotes a founder-first approach, allowing founders to take capital off the table early for personal financial stability, focusing on the well-being and vision over short-term gains.
- Tom Hulme emphasizes investing in companies solving difficult problems for sizeable long-term value rather than quick wins in hot markets, evident in successful investments like GoCardless.
- GV evaluates potential investments through scenario planning, assessing various outcomes and risks to make informed decisions that align with their long-term strategy.
- Startups should charge early adopters to validate the actual worth of their offering, ensuring feedback is based on genuine value perception.
- As an angel investor, Tom Hulme suggests not following on in subsequent funding rounds to maintain portfolio performance, a lesson learned from observing companies that increased in value only to fail later.
- Complete conviction in venture investments is a misconception; balanced assessment and considering the potential for failure is key, as there's always inherent uncertainty in venture investing.
- The shift to remote work has led to "cultural debt," impacting learning and mentorship opportunities, but companies intentional about their remote practices can still thrive, as seen with GitLab.
- Robotics as an investment opportunity is becoming more generalizable, mirroring AI's evolution, with advancements reducing costs and increasing potential applications, suggesting a broad, impactful future for robotics.