Satya Patel on the state of VC, flexible investing frameworks & converting to evergreen | E1715
Satya Patel joins Jason to discuss the economics of being a self-funded GP and the structure of their fund (6:51). Then, they have an all-encompassing discussion about the challenges of running Google today, the state of VC, and much more (15:44). Before wrapping, they discuss their investing frameworks and when and when they will not break them (43:29).
(0:00) Nick kicks off the show
(1:21) Satya's early days a Google
(6:51) The economics of being a solo GP
(9:29) Mercury - Apply in minutes and get up to $5M in FDIC insurance at https://mercury.com
(10:58) The structure of a fund
(15:44) The challenges of running Google today
(17:51) The evolution of chat-based search
(22:55) Squarespace - Use offer code TWIST to save 10% off your first purchase of a website or domain at https://Squarespace.com/TWIST
(24:25) The balkanization of AI data
(29:55) The pace of AI and the harsh reality of the private sector
(38:11) Clumio - Start a free backup, or sign up for a demo at https://clumio.com/twist
(39:28) Saying "no" to external funds
(43:29) Flexible Frameworks
(58:05) Founder Archetypes
(1:01:38) Being "founder friendly" and the importance of board meetings
(1:14:09) Screendoor
(1:22:25) Satya's thoughts on SVB
FOLLOW Satya: https://twitter.com/satyap
FOLLOW Jason: https://linktr.ee/calacanis
Subscribe to our YouTube to watch all full episodes:
https://www.youtube.com/channel/UCkkhmBWfS7pILYIk0izkc3A?sub_confirmation=1
FOUNDERS! Subscribe to the Founder University podcast:
https://podcasts.apple.com/au/podcast/founder-university/id1648407190
20VC: Homebrew's Hunter Walk and Satya Patel on Why $100M is Not Enough To Execute a Seed Strategy Today | Why They Decided not to Raise New External Funds | Where Are We in the Cycle & What is Truly F***** | Why Founders Should Take Secondaries Earlier
Hunter Walk and Satya Patel are Co-Founders and Partners @ Homebrew, one of the leading seed funds of the last decade. Following 10 years of stellar returns with investments in the likes of Chime, Plaid, Gusto and many others, they decided to not accept any further LP capital and to only invest their own money moving forward through Homebrew Forever.
In Today's Discussion on Homebrew We Breakdown:
1. ) The Foundings of a Great Partnership:
What was the moment when Hunter and Satya decided they were going to go out and raise their first fund with Homebrew I?
What are the core principles that all founding partners need to align on before they start a firm together? What questions should they ask of each other?
Why does being independently wealthy coming into a partnership make the partnership easier and more efficient to operate? What changes when the partners have money already?
2.) What Changes When Moving From LP Dollars to Personal Capital:
Why did Hunter and Satya decide to not raise any further capital from external LPs?
Asset allocation-wise, how did they determine how much is the right amount to set aside for the first 2 years of investing? How many investments do they want to make with that cash?
How does investing their personal capital change their deployment pace and cadence?
How does it change their approach to reserves management and follow-on financing?
How does it change their approach to pricing? How price sensitive are they today?
3.) Analyzing the Seed Landscape Today:
Why do Hunter and Satya not think that a $100M seed fund is enough to properly execute a world-class seed strategy today?
Who is their competition with the new strategy? How does it change their relationship with large multi-stage funds? How does it change their relationship with seed funds?
Do they agree that the last generation of sub $20M micro-funds will not raise another fund in this cycle? How did their entrance impact the seed landscape over the last few years?
Why are LPs also to blame for many of the original seed managers raising larger and larger funds?
4.) Companies: Money and People are The Problem:
Why has too much money been such a problem for many Homebrew portfolio companies over the last few years? How has too much money changed their execution plans?
What happens to the "living dead" companies with many years of runway but no product market fit?
Who does this market cater to well? Who will thrive in this market?
What have people forgotten about both startups and venture in the last 2 years that we have to remember?
Why is this generation so entitled and expectant? Why are startups not a get-rich-quick scheme?
SaaStr 473: Ringing the Bell on Competition with Chime's CEO Chris Britt and Satya Patel, Partner @ Homebrew
Chime wasn't the first digital bank, but it has become the largest one in the United States. In this episode, hear from Chris Britt, co-founder, and CEO, about Chime's journey in a highly competitive market and what it took to win.
Video + show notes: https://www.saastr.com/ringing-the-bell-on-competition-with-chime-ceo-chris-britt-and-satya-patel-homebrew/
SaaStr 355: The PPP You Really Need for Raising Capital During a Pandemic with Satya Patel, Partner at Homebrew
Despite the global pandemic, seed investing remains hyperactive amongst VCs. Satya Patel of Homebrew shares his expert advice on how to raise seed capital in 2020.
This episode is an excerpt from Satya's session at SaaStr Summit: The New New in Venture.
Full video: https://youtu.be/xXNLUKzcESg
Podcast transcript: https://www.saastr.com/saastr-podcast-355-with-homebrew-partner-satya-patel-the-ppp-you-really-need-for-raising-capital-during-a-pandemic/
20VC: Homebrew's Satya Patel on The Key Components of Being A Great VC & The 3 Main Reasons Startups Fail At Seed
Satya Patel is a Partner @ Homebrew alongside Hunter Walk. Prior to Homebrew, Satya was VP Product at Twitter, building and leading the Product Management and User Services teams. Before Twitter, Satya was a Partner at Battery Ventures, where he co-led the seed and early stage investing practices. In 2003, Satya joined Google and was responsible for AdSense product management and partnerships. Before heading to Silicon Valley for Google, I worked for DoubleClick, in venture capital and as a strategy consultant.
In Today’s Episode You Will Learn:
1.) How Satya made his way into the world of tech and came to Partner with Hunter @ Homebrew?
2.) Is hustle the key component of a great VC? What does Satya believes makes a great investor?
4.) How can startups present emotion and depict their narrative to the VC? What are the benefits of doing so? What founder is most
5.) From Satya's experience, what are the most common reasons startups fail at the seed stage? What can they do to maximise their chances of survival?
6.) We always hear that products should focus on a niche but how then do you attract VC money that is looking for a broad opportunity that can return the fund?
Items Mentioned In Today’s Show:
Satya’s Fave Blog or Newsletter: CB Insights, Fred Wilson, Brad Feld
Satya’s Fave Book: A Fine Balance
As always you can follow The Twenty Minute VC, Harry and Satya 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!
Product Hunt Radio: Episode 12 w/ Hunter Walk & Satya Patel
This week I, Ryan Hoover, visited the colorful Homebrew headquarters to catch up with Hunter Walk and Satya Patel. We chatted about their latest portfolio addition, the qualities they look for in a founder, and the awesomeness of "crazy" products like Vessyl and Yo. Products mentioned: - Nuzzle for iOS (http://www.producthunt.com/posts/nuzzel-for-ios) - See top news surfaced by your friends on Twitter & Facebook - theSkimm (http://www.producthunt.com/posts/theskimm) - Daily summary of current events in your inbox - Refresh (http://www.producthunt.com/posts/refresh-1-6) - Get Insights about the People You Meet - Slack (http://www.producthunt.com/posts/slack) - Be less busy. Real-time messaging, archiving & search - Fancy Hands (http://www.producthunt.com/posts/fancy-hands) - Assistants for Everyone - SHADOW (alpha) - Dream-based social network - Yo (http://www.producthunt.com/posts/yo) - A simple app to say "yo" to friends - Outdoors - AirBnB for Outdoors Equipment - Vessyl (http://www.producthunt.com/posts/vessyl) - A cup that knows what you're drinking - TravelbyDrone (http://www.producthunt.com/posts/travelbydrone) - Collects travel videos taken by drones - Snapchat Our Story (http://www.producthunt.com/posts/snapchat-our-story) - Experience live, real-time events together - shortwave (http://www.producthunt.com/posts/shortwave-2) - Short-range anonymous messaging (Secret meets Firechat) - Leo (http://www.producthunt.com/posts/leo-1154) - Ephemeral group photo chat with text that last 24 hours