Mastering Venture Capital and Founder Strategies with Rory O’Driscoll and Mark Suster
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Todays show:
Rory O’Driscoll joins guest host Mark Suster to discuss: advice for founders with traction but not yet booming (2:33), thirty years of internet cycles and their impact on venture capital (13:25), the approach to big-picture thinking vs. immediate traction and strategizing exits (36:58), and more!
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Timestamps:
(0:00) Rory O’Driscoll joins guest host Mark Suster.
(2:33) Rory’s advice for founders with traction but not yet booming.
(9:09) Aligning incentives between founders and venture; reminding CEOs to be "selfish.”
(10:23) Northwest Registered Agent - For just $39 plus state fees, Northwest will handle your complete business identity. Visit https://www.northwestregisteredagent.com/twist today.
(13:25) Reflections on thirty years of internet cycles and their impact on venture capital.
(18:25) Debating AI: Does it favor the incumbents?
(20:07) Wistia - Try Wistia for free at https://www.wistia.com/startups
(21:35) What Rory and Scale Venture looks for when investing in AI.
(26:20) How OpenAI has changed the landscape
(29:18) HiddenLayer - HiddenLayer’s AI Detection & Response Solution secures your Generative AI & LLMs from malicious attack. Visit https://www.HiddenLayer.com/TWiST to learn more.
(30:30) Debating “faux-mentum” vs. long-term sustainability in investments.
(34:34) Balancing deep passion and business savvy when evaluating founders.
(36:58) Rory’s approach to big-picture thinking vs. immediate traction and strategizing exits
(44:02) The importance of picking vs. price discipline.
(1:00:58) Advice for founders dealing with “busted cap tables.”
(1:08:07) Rory’s advice for his younger self.
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X: https://x.com/rodriscoll
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Thank you to our partners:
(10:23) Northwest Registered Agent - For just $39 plus state fees, Northwest will handle your complete business identity. Visit https://www.northwestregisteredagent.com/twist today.
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(29:18) HiddenLayer - ****HiddenLayer’s AI Detection & Response Solution secures your Generative AI & LLMs from malicious attack. Visit https://www.HiddenLayer.com/TWiST to learn more.
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Great 2023 interviews: Steve Huffman, Brian Chesky, Aaron Levie, Sophia Amoruso, Reid Hoffman, Frank Slootman, Billy McFarland
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Check out Jason’s suite of newsletters: https://substack.com/@calacanis
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20VC: Mark Suster on The Biggest Fundraising Lessons for VCs, Why the Correction in Venture is Still to Come, Why Private Equity Will Replace IPOs and M&A as the Exit Path & The Woke Left and a Trump Administration; What Happens?
Mark Suster is a General Partner @ Upfront Ventures, one of LA's leading early-stage venture firms. Prior to leading Upfront, Mark was a serial entrepreneur having founded two software companies, selling both with the last selling to Salesforce.com. Mark is also a prolific writer and one of his favourite pieces, Lines Not Dots is one for the ages.
In Today's Episode With Mark Suster We Discuss:
1. From Serial Entrepreneur to Leading VC:
How Mark made his way into the world of venture having sold two prior companies?
What does Mark know now that he wishes he had known when he started in venture?
What advice does Mark give to all young investors starting their career today?
2. How to Raise a Fund:
What are Mark's single biggest lessons from 15 years of fundraising for funds?
Should managers look to institutions or friends and family first?
Are LPs sheep? Do institutions anchoring funds lead to many others jumping in?
What is the right amount to do a first close on? What is the right way to message the first close?
What are the single biggest mistakes Mark sees managers make when raising?
3. Exit Environments are F******: What Now:
Why are IPOs not the liquidity events that everyone thinks they are?
When does Mark believe IPO windows will open again?
How does Mark evaluate the M&A landscape today?
With little M&A and IPO activity, why does Mark believe private equity will step into their shoes?
With the change to private equity being the buyer, what does that mean for the sale price of the assets? What does that mean for the future of venture returns?
4. Trump, The Woke Left and The World Around Us:
Is Mark concerned about the potential of Trump winning the election?
Would Mark rather a Biden administration as the alternative?
Why is Mark so worried by the woke left?
Does Mark always believe there has been this deep-seated anti-semitism in the US education system? What can be done to remove this from our education system?
Mark Suster and Samir Kaji on the 2024 Venture Market, IPOS, and Secondaries | E1899
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Todays show:
David Weisburd hosts Mark Suster, Samir Kaji, and Jason Calacanis to discuss the 2024 venture market (1:24), VCs selling secondaries (23:04), IPOS in 2024 (45:56), and much more!
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Timestamps:
(0:00) David Weisburd hosts Mark Suster, Samir Kaji,, and Jason Calacanis
(1:24) Thoughts on IVP raising $1.3 Billion for their 18th fund and different angles on the current fundraising market
(14:28) Squarespace - Use offer code TWIST to save 10% off your first purchase of a website or domain at https://Squarespace.com/twist
(15:53) Mark's strategy today for DPI (Distributed to Paid-In Capital)
(23:04) VCs selling secondaries and best practices when disclosing selling after hitting targets
(28:00) MEV - Get $30,000 off your first three months at http://mev.com/twist
(29:21) Thoughts on strip sales, continuation funds, and exotic secondary vehicles. When should GPs pursue that strategy?
(40:56) Northwest Registered Agent - Get a 60% discount on your next LLC at - https://www.northwestregisteredagent.com/twist
(45:56) F-Prime's 2024 State of Fintech Report, the IPO market in 2024, and early stage fintech
(54:47) Kleiner Perkins and how a firm reboots
(1:03:01) The apprenticeship model in Venture Capital, and mistakes GPs make when interacting with LPs
(1:17:44) Rapid-fire segment on top recent investments
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Mentioned on the show:
https://www.theinformation.com/articles/ivps-new-fund-shows-growth-investors-are-ready-to-get-off-sidelineshttps://techcrunch.com/2024/02/03/mamoon-hamid-and-ilya-fushman-of-kleiner-perkins-more-than-80-of-pitches-now-involve-ai/
https://fprimecapital.com/blog/the-2024-state-of-fintech-report
https://www.bland.ai
https://kuberahealth.com
https://www.stonealgo.com
https://giggster.com
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Follow Mark
X: https://twitter.com/msuster
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Follow Samir
X: https://twitter.com/Samirkaji
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Follow David:
X: https://twitter.com/DWeisburd
LinkedIn: https://www.linkedin.com/in/dweisburd
Check out: https://10xcapital.com
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Follow Jason:
X: https://twitter.com/jason
Instagram: https://www.instagram.com/jason
LinkedIn: https://www.linkedin.com/in/jasoncalacanis
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Thank you to our partners:
(14:28) Squarespace - Use offer code TWIST to save 10% off your first purchase of a website or domain at https://Squarespace.com/twist
(28:00) MEV - Get $30,000 off your first three months at http://mev.com/twist
(40:56) Northwest Registered Agent - Get a 60% discount on your next LLC at - https://www.northwestregisteredagent.com/twist
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Subscribe to This Week in Startups on Apple: https://rb.gy/v19fcp
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Great 2023 interviews: Steve Huffman, Brian Chesky, Aaron Levie, Sophia Amoruso, Reid Hoffman, Frank Slootman, Billy McFarland
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Check out Jason’s suite of newsletters: https://substack.com/@calacanis
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Follow TWiST:
Substack: https://twistartups.substack.com
Twitter: https://twitter.com/TWiStartups
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Subscribe to the Founder University Podcast: https://www.founder.university/podcast
ANGEL: Upfront’s Mark Suster on the power of alignment, setting reality, and raising capital | E1683
Jason is joined by Mark Suster of Upfront Ventures to cover raising capital in the early 2000s (1:22), aligning board members (21:19), the three variables VCs need to bet on (40:51), and so much more!
(0:00) Molly kicks off the show
(1:22) A recap of the previous 3 market cycles
(5:23) The hurdles founders will face starting a company in 2023
(6:55) Raising capital in the early 2000s
(9:15) LinkedIn Jobs - Go to https://linkedIn.com/angel and post your first job for free.
(10:37) Upfront’s strategy and changes to the market
(15:35) Misalignment of investors
(19:48) Prenuvo - Get $300 off a full-body MRI scan at https://prenuvo.com/twist
(21:19) Aligning of board members
(29:13) Setting reality as an investor/board member
(33:40) Cutting Burn & Mark’s decision framework
(39:23) Orgspace - Get $2000 of credits on pro plans with a 30-day free trial at https://orgspace.io/twist
(40:51) The 3 variables VCs need to bet on
(48:28) The power law and mission-aligned founders
(52:13) Feed the family money
(58:33) Company killers + Investing in lines not dots
FOLLOW Mark: https://twitter.com/msuster
FOLLOW Jason: https://linktr.ee/calacanis
FOLLOW Molly: https://twitter.com/mollywood
Robinhood earnings breakdown, Amazon launching department stores + Mark Suster deep dives VC | E1268
Jason breaks down the 2 metrics he uses to to assess Robinhood's Q2 earnings (1:43) and Amazon entering Department Store retail (16:39). Then, Mark Suster from Upfront Ventures joins (24:07) to discuss venture metrics, community as a moat, why high valuations don't necessarily mean a bubble & more.
E1121: Mark Suster on investing in human-computer interfaces & sustainability, what he looks for in founders, SPACs impact on early-stage investing & more
Check out Mark's Blog: https://bothsidesofthetable.com
FOLLOW Mark: https://twitter.com/msuster
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SaaStr 340: Mark Suster, Managing Partner at Upfront Ventures, on Funding In the Time of Coronavirus
Mark Suster is a managing partner at Upfront Ventures, the largest venture capital firm in Los Angeles, and a prominent blogger in the startup venture capital world.
In this episode of the SaaStr podcast, he shares his learnings on the current landscape of funding in the time of Coronavirus, including:
Valuation and compression
Forecasting market trends
The slowdown in VC
His best advice for surviving the downturn and raising a round of funding
You can find the full video and transcript of this talk on our blog: https://www.saastr.com/funding-in-the-time-of-coronavirus-with-mark-suster-video-transcript/
20VC: Upfront's Mark Suster on COVID Redefining What A Great Company Looks Like and What Valuations Look Like, Why Pay-To-Play Is Back On The Table & Why We Will See The Death of Party Rounds
Mark Suster is the Managing Partner @ Upfront Ventures, one of LA's leading and largest venture firms with a portfolio including the likes of Bird, GOAT, Maker Studios and Ring.com to name a few. Prior to joining the world of venture, Mark was the founder & CEO of two successful enterprise software companies, the most recent of which was sold to Salesforce.com where Mark became VP, Products. Mark is also the author of one of my favourite industry blogs, Both Sides of The Table.
In Today's Episode You Will Learn:
1.) How Mark made his way from founding enterprise companies to joining "the dark side" of venture with his move to Upfront?
2.) How does the current economic landscape change the world of B2B? How will renewals be impacted? How will customers approach discounting? Similarly, how will the world of B2C be impacted by COVID? How does this impact marketing and ad spend?
3.) How does Mark think about reserve allocation today with Upfront? How does that change in the face of COVID? Why does Mark believe this environment will redefine valuations? How should founders respond in the face of heavily changed valuations?
4.) Does Mark believe we will see a graveyard of new venture firms who have deployed too quickly and have too many hungry mouths to feed? How does Mark think about building temporal diversification into the portfolio? How can managers use reserves more intelligently moving forward?
5.) Does Mark agree with the Twittersphere that VCs remain "open for business"? How will we see deal volume impact? How will we see size of transaction impacted? What is the most important role a VC can play today? How will the M&A market also be impacte din the face of COVID?
Items Mentioned In Today's Show:
Mark's Fave Book: Disunited Nations: The Scramble for Power in an Ungoverned World
Mark's Most Recent Investment: Solve
As always you can follow Harry, The Twenty Minute VC and Mark and on Twitter here!
Likewise, you can follow Harry on Instagram here for mojito madness and all things 20VC.
SaaStr 211: The Ultimate Guide To SaaS Pricing From Investors @ Benchmark, Matrix, Upfront Ventures & Operators @ Figma, Snyk and Kustomer
In Today's Episode We Discuss:
David Skok: General Partner @ Matrix Partners: Why does David believe that all good products have at least one variable pricing axis? How can founders determine which variable they should choose for their product? What are the pros and cons?
Chetan Puttagunta: General Partner @ Benchmark: Why does Chetan believe we have seen a strong decline in the per seat pricing model? What are the major drawbacks of it? What are we seeing replace it? What has Chetan seen work well amongst his portfolio?
Mark Suster: General Partner @ Upfront Ventures: What were Mark's two biggest lessons on pricing from seeing the hyper-growth of Salesforce first hand? WHat does Mark advise founders when it comes to price anchoring and discounting? How does Mark view the sale of professional services with this in mind?
Amanda Kleha: Chief Customer Officer @ Figma: What were Amanda's biggest learnings from running the Zendesk pricing playbook? What does Amanda mean when she says that successful pricing is broke up into 3 separate product features?
Brad Birnbaum: Founder & CEO @ Kustomer:Why does Brad push back on the common suggestion of a "no man's land in SaaS pricing"? Why is innovation in pricing actually detrimental to sales in most cases?
Guy Podjarney, Founder & CEO @ Snyk: How does Guy think about having a large enough base to test pricing strategies? How does Guy think about the balance between freemium and paid? Does one have to come first?
Read the full transcript on our blog.
If you would like to find out more about the show and the guests presented, you can follow us on Twitter here:
Jason Lemkin
Harry Stebbings
SaaStr
Recode Decode: Mark Suster, managing partner, Upfront Ventures
Upfront Ventures Managing Partner Mark Suster talks with Recode’s Kara Swisher about leading the oldest and largest venture capital firm in Los Angeles. He explains why he rejects the term “Silicon Beach,” preferring “LA Tech,” and what people miss when they think of Southern California as a less-techie place than Silicon Valley. Suster says the increasingly common overfunding of tech companies and overpaying of tech workers in the San Francisco area are discouraging innovation. He also discusses how the geography of entrepreneurship in SoCal is changing, why Upfront-backed smart doorbell maker Ring sold to Amazon, and what people get wrong about one of LA's sexiest tech companies, Snap.
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SaaStr 124: Upfront's Mark Suster on The One Thing That Kills Sales, Why You Have To Price High and Discount & Why Sales People Are Either Farmers or Hunters?
Mark Suster is Managing Partner at Upfront Ventures which he joined in 2007, having previously worked with Upfront for nearly 8 years as a two-time entrepreneur. Before joining Upfront Mark was Vice President, Product Management at Salesforce.com following its acquisition of Koral, where Mark was Founder and CEO. Prior to Koral, Mark was Founder and CEO of BuildOnline, a European SaaS company that was acquired by SWORD Group. Mark is also the writer of one of my favourite VC blogs, Both Sides Of The Table which is a centre piece to the whole VC community and is a must read for all interested in entrepreneurship and VC.
In Today's Episode You Will Learn:
How Mark made his way into the world of startups and came to invest in SaaS with Upfront today?
What are 4 reasons why startups should prioritise professional services in the early days? Why do most VCs disagree with this? How did Salesforce do this right in their period of hyper-growth?
How should early stage startups approach the topic of pricing? How can they evaluate whether to call high or low? What are the pros and cons of doing both?
Mark has previously discussed the importance of finding your champion in the buying process. How can startups determine whether your champion is a decision-maker? What questions can you ask to find this out?
What changes as a SaaS business scales? What are the key inflection points of company development? How does Mark view the amount B2B startups are raising today? How does Mark evaluate responsible and right spend?
60 Second SaaStr
What should your first sales reps be really good at?
How has Mark seen early stage SaaS startups go wrong most often?
IPO markets, frothy or fantastic?
What does Mark know now that he wishes he had known before?
If you would like to find out more about the show and the guests presented, you can follow us on Twitter here:
Jason Lemkin
Harry Stebbings
SaaStr
Mark Suster
20 VC 085: Mark Suster @ Upfront Ventures on Being A Super Entrepreneur Driven VC
Mark Suster is Managing Partner at Upfront Ventures which he joined in 2007, having previously worked with Upfront for nearly 8 years as a two-time entrepreneur. Before joining Upfront Mark was Vice President, Product Management at Salesforce.com following its acquisition of Koral, where Mark was Founder and CEO. Prior to Koral, Mark was Founder and CEO of BuildOnline, a European SaaS company that was acquired by SWORD Group. Mark is also the writer of one of my favourite VC blogs, Both Sides Of The Table which is a centre piece to the whole VC community and is a must read for all interested in entrepreneurship and VC.
In Today's Episode You Will Learn:
1.) How did Mark make his way into the world of tech and later make the transition to VC?
2.) How have Mark's entrepreneurial origins influenced his investment style and approach to startups?
3.) What really gets Mark excited in terms of the founders and the companies they have built?
4.) How does Mark recommend that startup founders can meet investors and get those initial meetings?
5.) What sector is Mark most excited by and why?
6.) Mark has said in the past 'too much money too early often fucks companies up'. Why is that and how should founders determine what is the right amount to raise?
Items Mentioned In Today's Show:
My Fave of Mark's Posts: Entrepreneur DNA, I Invest In Lines Not Dots
Mark's Fave Book: The Accidental Superpower
Mark's Fave Blog or Newsletter: Stratechery, Ben Evans, Chris Dixon, Tom Tunguz
Mark's Most Recent Investment: Mitu Networks
As always you can follow Harry, Mark, The Twenty Minute VC and Upfront Ventures on Twitter here!
If you would like to see a more colourful side to Harry with many a mojito session, you can follow him on Instagram here!