Fund/Build/Scale

Before Sri Chandrasekar became managing partner at Point72 Ventures, he was a Senior Vice President at In-Q-Tel, the non-profit VC firm that invests in startups on behalf of the CIA and other national intelligence agencies. That work cultivated his interest in AI and ML a decade ago, which led hedge fund Point72 to recruit him to join its then-new venture arm in 2017. Fast-forward to 2024, Sri takes around 300 first-call meetings with founders each year. While we had an extended discussion about his investment thesis and the types of opportunities he's targeting, he also offered key insights into the current early-stage fundraising environment and spoke about the growing difficulty for startups seeking Series A funding, compared to the relative ease of raising seed rounds. AI-related startups need more capital than ever to launch a MVP, leading to larger seed rounds without increasing dilution for founders. However, this drives up valuations, and when startups reach the Series A stage, investors hesitate to pay high prices for companies with limited traction. “I think a lot of seed-stage founders are going to see this in the next year or two,” he said. “They're going to raise a Series A and they're going to be not up rounds, they'll be flat rounds.” 42:21 minutes Episode breakdown (1:45) “In-Q-Tel is the best place in the world to learn about venture.” (3:53) “Machine learning and AI is gonna be the most transformative force to our economy since the steam engine.” (8:55) “I think we're six to twelve months away from the trough of disillusionment.” (11:52) “It's easier than ever to build a prototype of anything… and the hardest that's ever been, in my opinion, to raise a Series A.” (15:27) The differences between working with technical and non-technical founders (19:23) “I'm starting to think that Herman Miller Aeron chairs probably hold their value longer than GPUs.” (21:16) “Returns are getting compressed, and something's got to give, right?” (24:21) What real repeatability actually looks like. (27:33) “It's really important to not get ahead of yourself in terms of marketing and branding until you have clarity around, ‘do I have product-market-fit?’” (31:26) Sri breaks down the “triple-triple-double-double-double” growth framework. (34:39) Advice for founders who need help de-risking themselves. (37:43) “I don’t know what the point of being in stealth is.” (40:47) What would Sri ask an early-stage CEO if he were interviewing for a job? Links Sri Chandrasekar Point72 Ventures Subscribe to Fund/Build/Scale 📓Substack: https://fundbuildscale.substack.com 🎧 Apple Podcasts: https://podcasts.apple.com/us/podcast/fund-build-scale/id1719488387 🎧 Spotify: https://open.spotify.com/show/0EbC8PTUSfpZ4USPC9ErnN Thanks for listening! – Walter.

Nicholas Thorne is a partner at prehype, a venture development firm that helps large companies create startups by acting as an incubator. He's also the founder of Audos, an AI co-pilot designed to assist entrepreneurs in conducting customer interviews, creating slide decks, and potentially investing in their ideas. According to Nicholas, Audos can even write code and identify freelancers, functioning as a virtual technical product manager. I interviewed him to explore how this co-pilot supports entrepreneurs, particularly those in the “conceptual stage,” to locate — and eventually exploit — what he calls ‘founder-customer fit.’ He outlined the ideal user profiles for Audos, which range from small business owners to corporate innovators and also explained how Audos leverages AI to tackle various tasks for entrepreneurs and discussed the investment opportunities he's pursuing. Finally, Nicholas shared some of the resources he's using to deepen his understanding of AI. Runtime: 25:39 Episode breakdown (1:31) How Audos works, and who's using it. (4:33) "It's just about trying to do the best thing you can to create more information with which you can make progress." (9:12) Audos' ideal customer is a "conceptual stage" founder. (11:40) Helping entrepreneurs "find and then nurture, and over time, exploit what we call 'founder-customer fit.'" (15:36) Using AI to shorten the customer discovery process and speed time to market (19:30) "I think you would probably consider it a family or suite of GPTs that are all trained in extremely specific jobs." (22:00) What kinds of investment opportunities he’s looking for (and how to reach him) (24:12) How Nicholas fills in the gaps in his AI knowledge Links Nicholas Thorne, partner, [email protected] prehype Audos Ethan Mollick, Ralph J. Roberts Distinguished Faculty Scholar, Associate Professor of Management, Co-Director, Generative AI Labs at Wharton, Rowan FellowOne Useful Thing (Substack) @emollick Dan Shipper, co-founder/CEO, Every@danshipper

I met Fortune Senior Finance Reporter Allie Garfinkle in February 2024 at an event for comms professionals. She had just taken over the Term Sheet daily deals newsletter covering startups, venture capital, M&A, trends and pretty much anything tech-related. When news broke right after our panel that Reddit was filing to go public, she didn’t have a desk or a chair, so she grabbed her laptop, sat on the floor with her back to the wall and began drafting her next column. She wasn’t stressed out — she seemed excited and laser-focused. Term Sheet comes out five times each week which means she’s up and reviewing reader tips between 4am and 6am. “I actually write every day because I want it to feel urgent. It's sort of this odd equivalent of being journalistically naked,” she said. A lot of tech reporters use their platforms to make predictions, pick winners and embroider their opinions, but Allie tends to play it right down the middle. “The thing that I probably excel at is sort of being somewhere between neither being a cheerleader nor being an incredibly harsh critic,” she said. “I actually try to approach every person in front of me on their terms, like, “okay, who are you?” Episode breakdown (3:49) “I started at Fortune in January. New year, new job. I'd actually never written a daily newsletter before, ever.” (7:00) “I think there are great hot takers in this business. But I don't think I will ever be one of them.” (9:27) “What's the bar for including things? I try to put myself in the position of the readers.” (11:57) “The Reddit IPO — actually the day we met — I had another story in the can. I recall this.” (14:40) “There's a certain kind of conventional story of success I find incredibly boring.” (16:53) “There's sometimes stories where I don't know if I'm the right person.” (17:13) Why Elon Musk just isn’t that interesting to write about. (19:07) How Allie really feels about writing tech trend pieces. (21:44) She explains how Stephen Sondheim’s rules for songwriting also apply to tech reporting. (25:04) Allie’s advice for early-stage founders who are fundraising in 2024. (29:04) “I don't want to work with jerks. This is something that I've had to learn the hard way over time.” Links Allie Garfinkle, Senior Finance Reporter, [email protected] Fortune articles by Allie GarfinkleReddit’s S-1 paints the picture of a company with a complicated past, present, and future Poor Charlie’s Almanack: The Essential Wit and Wisdom of Charles T. Munger Thanks for listening! – Walter. [email protected]

Before Igor Jablokov was CEO and founder of Pryon, he worked with Apple on a prototype of Siri. He also founded a speech recognition company that Amazon acquired to develop its Alexa AI and Echo devices. He joined me on the podcast to talk about the evolution and challenges of building AI technologies and companies, different phases of startup growth, and how AI is transforming enterprise software procurement. Igor also offered his insights on the current AI hype cycle, explained the concept of “knowledge friction,” and shared some personal anecdotes and observations about achieving enduring entrepreneurial success in the AI domain. Runtime: 42:55 Episode breakdown (2:42) “We were their first AI-related acquisition that birthed what many people know as Alexa.” (6:44) What happens when you can’t commercialize the technology you’ve created? (9:11) How Pryon originated the concept of “knowledge friction.” (14:33) Igor deconstructs the three main types of founders working in AI today. (18:38) Where he thinks we are in the current AI hype cycle. (21:14) “Before ChatGPT, it was a desert and very few of us survive in the desert with a small amount of water.” (23:06) Inside Pryon’s September 2023 $100M Series B round. (25:26) Why early-stage AI startups have a major advantage over legacy tech companies. (28:07) Founders need “practical experience in an industry that eventually you're going to be a part of.” (35:00) “Tech is as perishable as fruits and vegetables you can procure from Trader Joe's.” (38:58) Questions Igor would ask the CEO if he was interviewing for a role with a startup. Links Igor Jablokov, CEO, Pryon Pryon Pryon Closes $100 Million Series B Round Led by Thomas Tull’s US Innovative Technology Fund Amazon.com Acquires Voice Recognition Start-up Yap Follow Fund/Build/Scale on Substack Thanks for listening! – Walter. [email protected]

If you're building a first-to-market solution using emerging technology that could meaningfully contribute to society and generate a 50x return, TDK Ventures President Nicolas Sauvage wants to hear from you. I invited him on the podcast to learn about TDK Ventures’ approach to corporate VC, which uses backcasting to identify ideal future technologies and then invest in entrepreneurs who are working towards those goals. Portfolio companies include startups that make things like flying taxis, batteries from reclaimed materials and technology for nuclear fusion. “There's no doubt in my mind that no one can forecast the future,” said Nicolas. “But what we can do, all of us, is to dream of an ideal future, then backcast from there, and look at what are the gaps to get to this ideal future.” Runtime: 43:31 Episode breakdown 4:50: “The origin story of TDK Ventures was three interactions in classes from a Stanford executive program in 2018.” 7:59: Nicolas explains TDK Ventures’ investment scope. 9:14: “No one can forecast the future,” which is where backcasting comes in. 11:39: “Right now, we deploy through two different funds.” 14:07: Inside TDK Ventures’ deal flow and investment thesis. 16:14: “For any megatrends, we're looking at $10B+ TAM. It could be zero TAM today.” 20:31: How do you calculate TAM for emerging technology? 22:17: When it comes to due diligence, “we are prepared. We know what to look for.” 25:23: Why he’s open to revisiting pitches he rejected once their technology matures. 29:59: Common misconceptions about corporate venture capital. 33:40: “How do we judge when is the right time? That really depends case by case.” 36:09: How TDK supports early-stage deep tech founders with academic backgrounds. 42:06: “I like to see entrepreneurs coming with a superpower; something that they're exceptional at that no one else is.” Links Nicolas Sauvage, president, TDK VenturesEntrepreneurship: A superhero’s journey Corporate VC is booming, but is it what your startup needs? TDK VenturesDeep Explorations Autoflight Ascend Elements SPAN Divirod TypeOne Energy Starship Technologies AM Batteries Metalenz Jesper Sorenson, Senior Associate Dean for Academic Affairs, Stanford University Graduate School of Business Ilya Strebuleav, professor, Stanford University Graduate School of BusinessThe Venture Mindset: How to Make Smarter Bets and Achieve Extraordinary Growth Paul Holland, corporate venture practice managing director, Mach49 Thanks for listening! – Walter. [email protected]

In this episode of Fund/Build/Scale, host Walter Thompson engages in a comprehensive discussion with Hantz Févry, co-founder and CEO of Stoovo, an AI-based geospatial data company. Hantz shares invaluable insights into separating one's identity from their job, the importance of rapid execution in startups, and the journey from working at Google to launching his own company. This episode targets tech workers aspiring to start their own businesses and immigrants in the U.S. on worker visas, highlighting the unique challenges and strategies for achieving entrepreneurial success. Hantz speaks on redefining success, Stoovo's pivotal evolution post-pandemic, and the critical importance of profitability and investment strategy. Tune in to gain practical advice and inspiration for your startup journey. Runtime: 36:23 Episode breakdown 2:26: “We realized that when it comes to the last hundred meters, there's a big gap.” 6:34: “I don't like to call it a pivot. I like to say that Stoovo evolved.” 8:35: “I do not think pivoting is a bad word. Actually, I think it's a sign of resilience.” 10:55: “By working together, it was very natural for the whole team to transition.” 15:07: “I was working at a company called Google, but I am Hantz, I'm not a Googler.” 17:10: “You might get there. You might not, but at least you were courageous enough to try.” 18:36: How Hantz defines work-life balance 22:20: Before he could launch Stoovo, “I had to wait until I had my green card.” 25:16: “I didn't have a uncle here, I do not have that famous garage where I can just sleep” 27:37: How Hantz and his co-founder Pierre connected with early investors 29:19: His framework for assessing founder-investor fit 33:38: Fundraising advice for Black and immigrant founders 34:32: Why “you don't need to be in Silicon Valley to build a business.” Links Hantz Fevry, CEO/co-founder, Stoovo Stoovo (website) Stoovo app (Google Play) Stoovo app (Apple 500 Global Le labyrinthe des égarés: L'Occident et ses adversaires, Amin Maalouf Subscribe to Fund/Build/Scale 🎧 Apple Podcasts: https://podcasts.apple.com/us/podcast/fund-build-scale/id1719488387 🎧 Spotify: https://open.spotify.com/show/0EbC8PTUSfpZ4USPC9ErnN Follow Fund/Build/Scale on LinkedIn Thanks for listening! – Walter. [email protected]

Enterprise companies like Salesforce, Oracle and Cisco use sales-led growth to drive revenue and build relationships with potential customers. Early-stage startups can't afford to rely on traditional sales and marketing, which is where product-led growth (PLG) comes in. Instead of creating slick sales collateral and hiring aggressive go-getters, PLG presents the product itself as the primary driver for customer acquisition, expansion and conversion. "It's an end-user-based revenue motion," said Laura Schaffer, VP of Growth at analytics platform Amplitude. "So you're trying to ultimately drive revenue growth by focusing on the end user." I invited her on the podcast to talk about how founding teams with limited resources can build a robust PLG framework that gathers actionable data and drives engagement. "If you think of payment, it's just a kind of friction. Just like completing a signup is friction. Just like learning a new product is friction," said Laura. "Payment and pricing and charging is just another friction." Episode breakdown Introduction to Laura Schaffer and her background in sales and growth Defining Product-Led Growth (PLG) as an end-user based revenue motion Key components of PLG: Acquisition, Monetization, Retention Initial steps for startups adopting PLG with limited resources “There are bad, high-friction questions, and then there's good questions.” Identifying and prioritizing target personas based on user engagement Minimizing bias by focusing on user problems and using quantitative data Strategies for moving from freemium to paid versions based on engagement signals Using free tools like Google Drive and Amplitude for tracking and data collection Techniques for embedding personas into organizational culture for alignment Avoiding vanity metrics and ensuring engagement metrics are linked to value Laura’s advice on maintaining focus and prioritizing effectively for growth Links Laura Schaffer, VP Growth, Amplitude Amplitude Amplitude glossary of common terms How to run painted door tests that don’t piss off your users, CommandBar Elena’s Growth Scoop [Substack newsletter] Product-led Geek [Ben Williams’ newsletter] Follow Fund/Build/Scale on LinkedIn Subscribe to FBS on Substack Thanks for listening! – Walter.

In this episode of Fund/Build/Scale, I interviewed Amex Ventures Managing Director Kevin Weber about some of the nuances between traditional VC and corporate venture capital. It’s quite a mix: he’s looking for founders who can create value for individual American Express cardholders and the firm itself, so we talked about what types of opportunities he’s looking for, some of the problems he’s trying to solve, and the role risk plays in pushing organizational boundaries. “In many cases, I actually want to take more risk in some of the investments that I'm going to make because that risk and the investment that I'm making for the potential opportunity that I could have to American Express is likely worth the bet,” he said. If you’re interested in pitching Amex Ventures or another CVC, listen in for insights on fintech, AI, and e-commerce investments, the importance of aligning startup strategies with corporate goals, and key advice for first-time founders on fundraising and market positioning. Episode summary 00:19 Meet Kevin Weber: Amex Ventures' Managing Director 00:42 The Role of Corporate Venture Capital 01:24 Kevin's Career Journey 02:53 Amex Ventures' Investment Strategy 03:06 Differences Between Corporate and Traditional VC 04:05 Strategic Value and Partnerships 05:30 Focus Areas and Portfolio Companies 07:49 AI and Machine Learning in Venture Capital 09:29 Investment Process and Founder Relationships 15:11 Turning Investments into Partnerships 20:23 Collaborating with Businesses to Achieve Goals 20:39 Addressing Pain Points and Future Trends 21:10 Focus on AI 22:23 Business Goals and Fraud Prevention 24:09 Investment Strategies and Pivots 25:37 Exit Strategies and Acquisition Policies 31:40 Working with Accelerators and Incubators 34:44 Advice for First-Time Founders 39:07 Risk Tolerance in Corporate Venture Capital Links Kevin Weber, Managing Director, Amex Ventures Amex Ventures Weber joins Amex Ventures, 6/12/2023, Global Corporate Venturing Leadership Society Jobs at Amex Ventures Goodie Nation Follow Fund/Build/Scale on LinkedIn Subscribe to FBS on Substack Thanks for listening! – Walter.

Everyone's looking for ways to implement AI solutions, but integrating them into existing systems means entering uncharted territory. Despite the hype cycle, a majority of enterprise customers “are spending 70-80% of their capacity maintaining legacy application infrastructure,” said Jeremiah Stone, CTO of SnapLogic. As a result, these companies often lack the necessary talent to effectively assess or integrate AI, making compliance and security the two biggest challenges for AI-first founders. To overcome these and other adoption barriers, early-stage CEOs need to become educators and great listeners before they can ever act as salespeople. In this episode, I interviewed Jeremiah to learn more about identifying and overcoming barriers to AI adoption, strategies for effective customer engagement and the importance of transparency and iterative experimentation in AI development. Episode summary Security and compliance “are the two things that are challenging for adoption right now.” Before selling AI solutions, founders need to listen to (and educate) potential customers. “Enterprises are spending 70-80% of their capacity maintaining legacy application infrastructure.” The risk of data breaches and bad customer outcomes makes enterprises cautious. Focus on solving unique problems AI can address better than existing solutions. Build trust by starting discussions with security, compliance, and risk frameworks. Innovate openly to demystify AI for customers. Make sure your team is ready to answer typical security and compliance questions. Maintain discipline in focusing on scalable solutions rather than niche problems. “You have to create your own talent and upskill your data engineering team.” “Experiment weekly on the things that look promising and treat it as an iterative process.” Be transparent and involve customers early in your development process. Links Jeremiah Stone, CTO, SnapLogic SnapLogic company overview SnapLogic Names Jeremiah Stone CTO Fund/Build/Scale on LinkedIn Fund/Build/Scale on Substack Thanks for listening! -- Walter.

Deb Kemper is a managing partner of Golden Seeds Ventures, a firm that focuses on backing early-stage, women-led companies. She joined me on the podcast to share tactics with founders who want to build networks with investors outside of Silicon Valley and discuss some of the challenges facing anyone seeking follow-on funding these days. We also talked about the criteria investors use to gauge the strengths of teams and their ideas. “I know some investor groups do full-on psychological assessments of founders and their teams,” she said, noting that she prefers to learn through observation. One red flag: entrepreneurs who can’t easily explain their ideas aren’t ready to work with investors. “If I go to a networking event and someone can't tell me in 60 seconds what they do — or even less — I'm done,” said Deb. “They just want to talk to you and tell you everything about their company. And I walk away saying, “I still don't know what they do.’” Episode breakdown How Golden Seeds Ventures works with Golden Seeds Angel Network “You have to be really solving a customer problem in a way that we see is unique.” Strategies for fundraising, extending runway + adapting to the current investment climate Founders/companies that might benefit more from funding methods besides traditional VC Why finding a co-founder is more about serendipity than process How Golden Seeds gauges a team’s domain expertise/understanding of market needs Deb talks about the need for products to solve substantial problems and not just be quick fixes Common pitfalls for founders, especially around financial management and market positioning “I don't think that's of any use to have a rubber stamp board.” Deb’s perspective on the current state of AI investments and the potential for startups outside major tech hubs Links Deb Kemper, managing partner, Golden Seeds Ventures Golden Seeds Ventures Utah Tech Week 2024 Fund/Build/Scale on LinkedIn Fund/Build/Scale on Substack Thanks for listening! – Walter.

One of the first interviews I did for the podcast was with Renen Hallak, CEO and founder of AI infrastructure company VAST Data. The company launched in 2019, and three years later, it was ranked No. 5 on the Deloitte Technology Fast 500™. Today, its customer base includes massive organizations like Disney, Verizon, the US Air Force and the US Department of Energy. It’s one of the fastest-growing companies in its sector. You can probably tell I was a little nervous. Most of the questions I asked covered VAST Data’s first eighteen months: his customer discovery process, how his team worked to gain traction and build credibility with clients and also, why he looked for a co-founder who could take over go-to-market strategy. Renen also spoke frankly about his previous experiences launching startups, which weren’t as successful. When it came to fundraising, “I did not know how to do it,” he said. “I didn't understand the game. I thought that VCs judge ideas based on the merit of the idea. In fact, I think most of the weight goes to who you are, what you've done, and who vouches for you, in terms of who they choose to invest in.” If you’re an academic or a worker in a technical role who’s thinking about starting up, you’ll definitely want to listen to this episode. LINKS Renen Hallak, CEO/founder, VAST Data VAST Data VAST Data Ranked 5th Among North America’s Fastest-Growing Technology Companies [press release] Fund/Build/Scale on LinkedIn Fund/Build/Scale on Substack EPISODE BREAKDOWN What VAST Data does Renen's career shift and the early challenges he faced starting VAST Why his previous fundraising failed: “I did not know how to do it. I didn't understand the game.” Customer discovery processes and early challenges in gaining traction/building credibility What he learned from failure about fundraising and VC dynamics Strategies for creating innovative products that withstand competition from big players How VAST used customer feedback to shape their product development The process and timing of building a team, particularly focusing on sales + marketing Initial customer acquisition and how VAST secured large-scale data users early on From zero -> $1 million ARR -> $10M ARR in about 18 months How VAST anticipates/integrates future AI trends into its pipeline + business model Renen’s personal advice for new founders transitioning from technical roles to CEO positions

Viviana Faga is general partner at Felicis, a venture firm that invests in seed to Series B startups in several sectors. Since its founding in 2006, the company has backed breakout companies like Adyen, Canva, Shopify and Runway. Because she’s a former operator with experience in positioning, branding and go-to-market strategy, I asked her to come on Fund/Build/Scale to talk about how she evaluates seed-stage AI investments and share some of the tactics she’s using to help founders “really focus on this idea of a defensible brand.” Episode breakdown: A look at Felicis’ strategy of investing across different sectors and stages Viviana outlines areas of interest within AI and clarifies typical investment size “If you're a traditional SaaS company, I think it's going to be very hard.” How AI startups differ from traditional SaaS in terms of growth/funding opportunities “I think TAM is just a false predictor in either direction.” “It's hard to start an AI company if you have not been in research or in academia,” “Every time there's a hot AI company, there's 15 new YC companies going after that problem 3-6 months later.” “Marketing is formulaic, it really shouldn’t scare anyone.” Questions AI founders should ask investors to ensure alignment and set expectations Viviana shares her resources for keeping up with the latest developments in AI “I always ask teams, ‘what's going to happen in five years that will determine your success, and walk me through it.’” Links: Viviana Faga, general partner, Felicis Felicis NeurIPS 2024 Conference on Neural Information Processing Systems No Priors podcast Thanks for listening, – Walter. FBS on Substack LinkedIn

Fiat Ventures General Partner and co-founder Drew Glover fits the textbook definition of an emerging investor, but we had so much to talk about, the term itself never came up during our interview. Founded in 2022, Fiat Ventures is nearing the end of its $25M Fund One, which has focused on seed-stage fintech startups. “Seed is really the space that's optimized to our process, which is to work with them prior to investment,” said Drew. In addition to Fiat Ventures, he also co-founded full-stack consultancy Fiat Growth, along with Fiat Advisory, a business marketplace that connects founders with experienced operators. Working separately, Fiat’s three arms strategically support early-stage founders from talent spotting to market entry in a capital-efficient manner. In our interview, Drew unpacked the firm's philosophy of assembling a consortium of experts tailored to each stage of a startup's growth, rather than relying solely on an in-house marketing team. We covered a lot of ground: Drew talked about his journey from football at UC Berkeley to venture capital. Because he's a person of color who navigated unconventional paths into the industry, he emphasized his commitment to accessibility and mentorship for underrepresented founders and fund managers. He also explained how and why Fiat Ventures actively seeks talent beyond Silicon Valley. “As a Black VC that had to find a backdoor into the VC space, I understand how few folks that look like myself are out there both as a fund manager, as a venture capitalist, as well as a founder of color,” said Drew. “I'm typically looking for ways to make myself as available as possible.” Episode breakdown Founding Fiat Growth, and how it evolved into Fiat Ventures Drew: “We believed we had a strategy around cost-efficient growth.” How Fiat Ventures is adapting to recent shifts in fintech? “Reverse-engineering venture” = working with companies prior to investment “Do not hire a growth team. Bring a team like us in who can build your entire growth foundation.” Common pitfalls in early-stage startup hiring and implementing growth strategy The criteria and process Fiat Ventures uses to select and support startups Fiat Advisors supports early-stage startups that aren’t yet ready for direct investment “There is a relationship foundation in the VC space that needs to be honored.” Fiat’s criteria for choosing investments and the importance of founder dynamics Drew reflects on navigating the VC world as a person of color Fiat Ventures’ plans for expanding services and the long-term vision for Fiat's ecosystem Links Drew Glover, GP, Fiat Ventures 40 Under 40: Drew Glover, Fiat Ventures, San Francisco Business Times, 4/21/23 Alex Harris, GP, Fiat Ventures Marcos Fernandez, co-founder/managing partner, Fiat Ventures Fiat Growth Fiat Ventures Fiat Ventures, with $25M for first fund, brings ‘insider’ approach to investing in early-stage fintechs, TechCrunch, 11/16/22 Steady App Chime Oakland Citizens Committee for Urban Renewal (OCCUR) David E. Glover Emerging Technology Center Fintech Meetup Money 2020

Early-stage deep tech founders working in AI and ML, or sectors like mobility, robotics and semiconductors are generally better off raising funds, seeking mentorship and connecting with potential customers via investors who aren’t expecting rapid growth and expansion. Because corporate VC looks for strategic plays that can accelerate their companies’ tech adoption and expand access to markets, they’re often more in alignment with deep tech startups. They also cast a wider net — while Y Combinator enrolls 1.5% of the applicants it receives, Intel Ignite is still highly selective, but it has a 4% acceptance rate and a broader global reach, says VP and GM Tzahi Weisfeld. In this episode, we discussed his program’s selection and evaluation process, the kind of team Intel Ignite wants to mentor, and how they help deep tech founders overcome common challenges like feature prioritization and hiring. “We look at the size of opportunity for Intel to be engaged,” said Tzahi. “And for us to look at this as a relevant thing, we would want to see a major impact.” Interested in more corporate venture capital insights? I’m interviewing two more CVCs this season: Kevin Weber (managing director, Amex Ventures) and Nicolas Sauvage, (president, TDK Ventures), so please subscribe to Fund/Build/Scale on your preferred podcast platform. Links: Intel Ignite Tzahi Weisfeld, VP, GM, Intel Ignite Intel Capital CB Insights State of CVC 2023 report Intel To Acquire Granulate (2022 press release)

I’m Walter Thompson. After working for years in early-stage startups and as a journalist, here are three hard truths I’ve learned: Success in Silicon Valley hinges on connections, hard work and luck. Startups often fail because founders lack fundamental business knowledge. Real, actionable advice comes from those who've actually done it. There’s no such thing as “founder DNA.” If you’re willing to take on risk and invest years of your life in something that has maybe a 10% chance of paying off, you can be a startup founder. Here’s why I founded Fund/Build/Scale: To help founders make fewer mistakes. To share successful strategies that can accelerate your go-to-market journey. To inspire more people to see themselves as potential founders. This podcast is for anyone who’s interested in learning the basic skills required to launch a startup, secure initial funding and transform an idea into a sustainable business. Interested? Subscribe to Fund/Build/Scale and follow the podcast on LinkedIn or Substack to get articles, excerpts, transcripts and more. Thanks for listening.

The average failure rate for a tech startup is 90%. Around one-fifth will flame out in the first year, and the overwhelming majority of the ones that make it past that mark will never be acquired or go public. It’s brutal. It takes years to build a sustainable technology company, and considering how unbalanced the risk/reward ratio is, each founder needs to craft personalized mental and emotional frameworks that suit their needs. Because there’s no single recipe for long-term success, I was glad to interview Poshmark CEO Manish Chandra and DevRev CEO Dheeraj Pandey about how they deal with the fear, uncertainty and doubt that affects every entrepreneur. Poshmark is a pure consumer play, and DevRev sells enterprise software, but because Dheeraj and Manish are repeat founders who’ve taken startups from Day Zero to IPOs, they were an excellent choice for the last episode of season 1. We broke down some of the strategies they’ve developed over time for recruiting, fostering early adopters, driving growth, and transitioning across industries. Both guests also unpacked some of the strategic decisions that propelled their companies forward and spoke openly about how they navigated some very lonely times along the way. Episode breakdown [2:38] Dheeraj: “The hardest thing was to really find the innovators and the early adopters.” [4:40] Manish: “I just kept saying, ‘I'm not the right guy to do this idea because I had no consumer background.’” [7:03] Why it’s so important to build an advisory team early on [8:12] Dheeraj: “Finding people who have hunger and humility… has always been hard.” [10:51] Prioritize hiring early employees who will challenge you and your assumptions [14:18] Use your initial recruiting process to refine your value proposition [17:30] When Manish realized Poshmark was the right company for the moment [21:24] Winning “VMworld awards basically told us that we're doing something right.” [24:36] Manish: “We got the first version of the app ready, but there were a couple of problems.” [30:09] Dheeraj: “We said, ‘we’ve got to take something to the have-nots.’” [35:14] Embrace a design-first mentality from Day Zero. [39:00] Search for ways to reduce friction from every internal and external process [43:21] Dheeraj: “By the way, the only job of the CEO over time is to go towards the fire.” [50:39] When it comes to design, “less is better” [53:39] Manish: “Whatever you don't have, you can always find it in someone else.” [55:16] Dheeraj: “The more and more money you actually raise, the less you can pivot.” [59:21] Manish: “Always be closing, because money can disappear very quickly.” [1:02:32] Dheeraj: “I think my learnings have been about keeping the balance sheet in your head all the time.” [1:05:31] How to recognize when it’s time to throw in the towel [1:07:01] Is work-life balance even an achievable goal for an early-stage founder? Links Manish Chandra, CEO, PoshmarkTracy Sun, co-founder, Poshmark LyAnn Chhay, VP, Poshmark Dheeraj Pandey, CEO, DevRev Kaboodle Nutanix TiE Global Gokul Rajaram on Twitter: “VISION => TALENT => TEAM” What Is Forming, Storming, Norming and Performing? How to Be a C.E.O., From a Decade’s Worth of Them Rise of Empires: Ottomans Eclectic grandpa style Simon Sinek Thanks very much for listening to season 1 of Fund/Build/Scale! There’s much more to come in season 2, which starts very soon. Join the FBS LinkedIn group Subscribe to Fund/Build/Scale on Substack Fund/Build/Scale is sponsored by Mayfield and Securiti.

For this episode of Fund/Build/Scale, I interviewed Dipanwita Das, CEO and co-founder of Sorcero, about the journey of taking an AI startup from research to reality. She shared her experience of interviewing more than 300 people to shape Sorcero's product and technical requirements, as well as strategies for aligning customer needs with product development. We also discussed the challenges of building a capable team, fundraising, and the process she and her co-founders used to transform their thesis into a marketable product. [1:55] How Sorcero’s co-founders connected and launched in 2018 (before the AI boom) [5:31] Why she interviewed 300+ people to gather insights before Sorcero started building [6:21] "R&D for us sort of is in two halves." [8:57] Building a team with the right balance of skills and entrepreneurial spirit [10:52] "Someone… suggested we use the frame, 'minimum lovable product.'" [12:20] "My TAM calculation was a bit amateur in the early years." [16:28] How Sorcero managed R&D while building trust with early customers [19:14] Series A milestones [21:44] "I zeroed in on a number of roles" in hundreds of customer discovery interviews [26:14] How they determined whether Sorcero would be a horizontal or vertical product [29:31] If you have a cohesive cognitive framework and market proof, you can fundraise [32:20] Why AI academics/researchers should cultivate "a customer-facing mindset" [37:46] When making early hires, "you need a builder persona with an incredible drive." [41:15] The one question she asks in every interview [42:25] Her advice for AI founders who are trying to raise funds right now Links SorceroDipanwita Das, CEO Walter Bender, CSO Richard Graves, CCO What is a minimum loveable product? [Product School] Funding alert: AI startup Sorcero raised a (mid-pandemic) $3.5M bridge round AI startup Sorcero secures $10M for language intelligence platform How Sorcero is improving the accessibility of scientific literature Thanks for listening! Fund/Build/Scale is sponsored by Mayfield and Securiti.

Going from zero to $1M in annual recurring revenue is worth celebrating, but it’s no guarantee that your startup is on a path to success. How long did it take to reach this milestone? How much did you spend to acquire each customer, and how many have renewed or extended their contracts? When it comes to sales, repeatability equals success. To learn more about the tactics startups use to reach $1 million ARR (and beyond) I interviewed Rehan Jalil, CEO of Securiti. Drawing from his experience as a three-time founder, we talked about setting up an initial sales motion, understanding and validating the problem you're solving, focusing on a specific audience to hone your value proposition, and building trust with early customers. Episode breakdown: “Before we even get to the revenue, it actually is important to understand what problem you're trying to solve.” [2:10] “The only metric is repeatability.” [4:55] “So we coined the term ‘privacy ops’… we wrote a book on it.” [7:35] “Teams have to be very much in sync, which means information has to flow.” [10:39] “By the time you get to MVP, you better have refined this thing. [12:40] “Before you bring in sales teams, it’s important that you actually have the content for them.” [15:34] “The bar is very high within the enterprise, and it takes much longer.” [18:29] “If you don’t start with conviction, don’t do it.” [21:41] “Find people who have a common interest on the problem that you're trying to solve.” [26:08] “If they feel like you helped them… they can actually be advocates.” [28:14] “Just putting things freemium out there doesn’t mean people are going to adopt it.” [30:41] “Prioritize finding a viable use case and viable product strategy vs. rushing into something.” [32:36] Thanks for listening! Follow Fund/Build/Scale on LinkedIn and Substack.

Successful entrepreneurs must translate their personal visions into something tangible enough to attract employees, investors, and eventually, customers. There are best practices for product management and software pricing, but how do you make yourself persuasive (and authentic) enough to convince someone else to risk their time and money on your idea? I interviewed May Habib (CEO and co-founder, Writer) and Gaurav Misra (CEO and co-founder, Captions) to learn how they use a mix of hard and soft skills to maintain a clear and strategic vision that informs everything from recruiting to GTM strategy. We also discussed methods for finding investors who understand your space, building a team, and why “rarely is the first idea the right idea.” Here’s a full episode breakdown: Part 1: May Habib, CEO and co-founder, Writer "This was going to be just a much more interesting product." [03:27] Writer's original founding "team is pretty together from early days." [5:45] "In 2020, I don't remember spending a lot of time on the AI behind the AI." [6:11] When May recognized that she’d connected with investors who shared her vision [8:30] "The benefit of the full-stack approach is really becoming pretty obvious for people who are spending time with enterprise customers." [12:11] "I don't see myself as a storyteller, I see myself as decent at picking up signal from noise and explaining that to people." [13:03] "I do care a lot about design, about brand.... it's always been a very visual company." [16:07] "If I was just meeting somebody, they got a slightly different deck in the first meeting." [19:06] "Even ‘til the Series A, I think I looked down on people who were active on LinkedIn." [20:03] "I think enterprises are getting fatigued." [23:01] "If it's AI, show, don't tell, because the capabilities are so wild that you can really blow people away." [26:42] Part 2: Gaurav Misra, CEO and co-founder, Captions "We want to come up with a lot of different ideas in this space and what gets us excited." [33:32] "We talked to a lot of people to help solve that creation problem that we were trying to go after." [36:34] Why social media is "a really good way to actually test startup ideas" [38:20] Investors were enthusiastic about shifting strategy, but "the hard part was to convince yourself." [39:55] "It's really important to have an investor who understands the space inside and out." [41:29] "The hardest part has been, what do we actually want to do, and what did we see actually working?" [44:35] "I don't think of myself as a natural storyteller. I think it's something that I had to learn a little bit more of." [47:00] Why Gaurav is still Caption's 'chief storyteller'" [49:42] The importance of aligning your overall vision with PMF [51:16] "As the company grows, the vision does become more and more crystal clear" [52:10] "Once people try the alternate solution, they should never want to go back to the original." [54:30]

In part two, Armon explained why he initially resisted investor advice to raise a Series A and spoke frankly about the challenges involved with stepping up into a leadership role, which led to some interesting talk about overcoming impostor syndrome, something a lot of us can relate to. Part 2: show Series A investors market opportunities you've already validated [1:51] focusing on enterprise sales from the beginning was a winning strategy [3:40] "we had an enterprise sales option straight from the beginning' [5:21] why he hired a full-time salesperson as soon as Coalesce exited stealth [6:52] how he connected with co-founder Satish Jayanthi [7:22] coping with imposter syndrome and overcoming the pressure to perform [12:18] raising a larger Series A than planned led to better outcomes [14:23] avoid talking to investors until you're ready to raise — then move fast [16:51] candid advice for anyone who's interviewing with an early-stage AI startup [18:55

I interviewed Coalesce CEO and co-founder Armon Petrossian in February 2024 to talk about his company's journey from seed stage to Series A. I had no idea he was already working on his next round: just a few weeks after we recorded this interview, Coalesce announced a $50M Series B. To help me prepare, his team shared their slightly redacted Series A pitch deck, which was immensely helpful. I'd intended to make this a mini-episode, but there was so much here, I decided to break it up into two parts. Part 1: why building in stealth was the right call for Coalesce [1:39] guiding principles for who should — and should not — build in stealth [4:22] how to manage customer discovery without revealing too much [6:50] why they used their seed round "to build out the team as quickly as possible" [10:12] midway through 2022, fundraising dynamics "changed radically" [11:33] when investors pushed for a Series A, "I was like, that's crazy" [13:05] starting up in San Francisco when you don't have industry connections [15:52]

I interviewed Laura Bisesto (global head of policy and privacy at Nextdoor) in January 2024 to get her advice for AI startups that are just starting out. We talked about compliance, how to recognize when you need in-house help, and the overall importance of planning for worst case scenarios. She also had some thoughts for rolling out new AI-powered features, creating user advisory boards, and navigating a patchwork of state, federal and international laws. Here’s a breakdown of our conversation: “You don’t have to be an ethicist to start an AI ethics program..” (2:44) don’t wait for lawyers: work on safety and trust from Day 1 (4:44) how Nextdoor developed and launched its generative AI principles (7:21) evaluate and reduce risk before rolling out AI-powered features (9:05) why product teams should oversee risk management (10:54) "the regulatory environment is evolving" (12:25) the Biden administration's October 2023 executive order on AI (15:04) how to position your startup for compliance with future regulation (18:32) trickery and a lack of transparency can lead to expensive mistakes (22:22) be careful when sharing user data between different jurisdictions (23:45) the most common trust, safety and compliance mistakes AI founders make (25:23) Fund/Build/Scale is sponsored by Mayfield and Securiti.

For episode 5, I interviewed Maria Latushkin, GVP of Technology and Engineering at Albertsons, the second-largest grocery chain in America, and Jack Berkowitz, Chief Data Officer at Securiti (previously with ADP), to get their insider's perspective on how enterprise-level customers buy software and services from AI startups. The most surprising thing I learned came early in the chat: spinning up a pilot program or a partnership creates tangible risks for enterprise customers, which means they can only afford to work with a few startups at a time. Maria and Jack each have startup experience, but their time as C-level execs inside public companies gives them a unique perspective on breaking into enterprise sales. In this episode, we'll talk about sales strategies, navigating the procurement process, how to run a proof of concept or pilot program, and other essential topics. Here’s a full breakdown: The challenges and rewards of being an early-stage company's first customer (3:00) What one former Fortune 250 software buyer thinks about your GTM strategy (5:52) How to keep the whale you landed from pulling your boat under (7:33) What it looks like when a pilot, POC or partnership goes south (8:49) Customer discovery: “you can talk to me, but don’t sell to me.” (10:55) Enterprise software buyers already know your tech isn’t “bulletproof” (12:59) Red flag: don’t talk to customers like they’re investors! (14:21) “How can I get that domain expertise before I show up to that buyer?” (16:56) Partnerships, intellectual property, and procurement for AI startups (20:23) Turning a pilot program into a long-term contract (23:26) Proof of concept, opportunity costs, land-and-expand strategies (27:09) Managing pilot programs and prioritizing one-off feature requests (29:18) Common mistakes founders make while spinning up their sales motion (31:33) How success fee agreements work (35:50) For my next episode, I spoke to Laura Bisesto, global head of policy and privacy at Nextdoor. We talked about the regulatory landscape facing AI startups in 2024, and how small companies should start the work of developing their own ethical frameworks. We got into how to recognize when you need legal help, recapped some data governance best practices, and also talked about why it's so important to create a buttoned-down process for rolling out new AI features. Fund/Build/Scale is sponsored by Mayfield and Securiti.

Jorge Torres (CEO, co-founder, MindsDB) and Vijay Reddy (AI Start investor, Mayfield) were the first two people I interviewed for Fund/Build/Scale. We met up at Jorge's office in San Francisco's Mission District on a rainy Friday afternoon in November 2023. We spent time discussing the ins and outs of pitch tactics and investor outreach, but we also talked about the criteria VCs use to evaluate zero-day investments, which red flags investors and founders both need to look out for, and how to find a VC to partner with for the next decade (not just the next funding round). Jorge has been through the fundraising process three times and Vijay is an experienced seed investor, so I was glad to talk to them both about fundraising from both sides of the table. Here's a breakdown of our conversation: How Jorge and Vijay assess team quality (2:28) Vijay: "We don't do spray-and-pray." (4:06) Founders need to de-risk themselves before pitching (5:21) Jorge's three key questions for early-stage teams (7:14) Why you don't need a demo, customers or revenue to pitch (9:59) Founder red flags that turn off investors (14:12) How to recognize seed-stage investors who actually add value (15:55) When it comes to accepting early funds, be strategic (18:43) Don't focus on TAM, just find clear pain points in large markets (22:03) "If you're close to something that makes sense... don't wait too long to show it to an investor." (23:41) How early-stage AI startups can avoid extinction-level events (25:44) You can't build a strategic moat without real-world data (27:55) Technical founders should team up with nontechnical co-founders (29:56) Closing a seed round: how long should it take? (31:32) How much runway does an AI startup need? (34:05) Links: Jorge Torres, CEO, co-founder, MindsDB Vijay Reddy, AI Start investor, Mayfield MindsDB AI Collective, San Francisco, CA Mayfield AI Start Seed Fund [email protected] Fund/Build/Scale is sponsored by Mayfield and Securiti.

I wanted to learn more about how inception-stage AI founders can tap into developer ecosystems, so I spoke to Ozzy Johnson, Director of Solutions Engineering for NVIDIA Developer Programs. In his role, he leads a global product team that accelerates its own work by interacting with outside developers who use the company’s technology. Johnson also works with NVIDIA’s Inception program, a virtual accelerator for AI and deep-learning startups. “It's kind of necessary to know the shape of the world to have a sense of where things are headed,” he said. “We ideally want to see around corners, we want to try to get there first, or at least, meet developers where they are.” Here’s what we talked about: Why more AI founders should focus on fundamentals (1:50) How AI is leveling the playing field for non-technical founders (4:28) How to (and not to) recruit talent from the developer community (7:26) The dangers of digging your moat too early (9:41) Finding scalable problems customers want solved (11:30) Prioritize early spending on "saleable differentiation" (14:36) Top traits of successful AI founders (17:21) Benefits of NVIDIA’s Inception program (22:11) Balancing customer feature requests with roadmap control (25:21) Why the rise of Gen AI is a transformational moment (28:21) Ozzy’s advice for anyone interviewing at an AI startup (31:36) Thanks for listening! Fund/Build/Scale on LinkedIn Fund/Build/Scale on Substack

Idea-stage investors are still excited about AI, but the savvier ones are looking for social proof and tangible takeaways from the customer discovery process. Before they commit, these investors are seeking evidence that the idea/team they’re considering won’t melt like snow in the rain the next time a major player improves their model. With that in mind, I interviewed Rodrigo Liang, co-founder and CEO of SambaNova Systems, for Episode 2. Launched in 2017, SambaNova raised more than a billion dollars in its first three years to create a full-stack LLM platform. Our conversation covered a lot of ground, including his thoughts on product-led growth strategy for AI startups and the importance of aligning the needs of customers with the technology you’re developing. Here’s a breakdown: SambaNova's founding, market dynamics, and early product development (1:22) AI in enterprise environments, developing an ideal customer profile (4:23) how to ID different customer classes (6:47) developing a cohesive marketing strategy from Day 1 (10:09) keeping product development aligned with the needs of your customer (14:11) the pitfalls (and payoffs) of creating a feature for a single customer (17:13) customer transparency: can you/should you share your product roadmap? (20:28) overcoming AI adoption challenges and controlling costs (24:24) understand your customer's journey to deliver value quickly (28:21) "we really are focused on getting those quick proofs of success” (30:09) Rodrigo's advice for early-stage AI startup employees (35:45) early-stage fundraising should be about milestones, not runway (38:17) Fund/Build/Scale is sponsored by Mayfield. If you have a fundable idea for an AI-first startup at the cognitive plumbing layer, email [email protected]. The podcast is also sponsored by Securiti, pioneer of the Data Command Center. Follow Fund/Build/Scale on Substack and LinkedIn.

In the first episode of Fund/Build/Scale, Mayfield Managing Partner Navin Chaddha spoke about the need for founders to identify investors they can trust, how to pitch Mayfield's AI Start seed fund, and why he’s specifically looking for inception-stage entrepreneurs who have “half-baked” ideas. Our conversation covered a lot of ground: Navin described the elements of a fundable idea, shared what excites (and unnerves) him about AI investing, and offered a framework for founder teams seeking solutions to orthogonal problems that create value for customers and align with market trends. Here’s an episode rundown: 1:07: AI investing and entrepreneurship 7:56: fundraising, enterprise opportunities and success metrics 17:27 the biggest challenges facing AI investors 19:11: what strong founder teams look like 22:10: leveraging inception-stage investors 26:47: why idea-stage founders shouldn't worry about revenue 31:36: pitfalls/opportunities at the enterprise level 34:25: the "impedance mismatch" between startups + enterprise customers 38:22: societal change + responsible innovation 42:48: how he educates himself about emerging tech Coming up in Episode 2: I spoke with Rodrigo Liang, CEO and co-founder of SambaNova, about digging a moat, customer discovery, and product-led growth. Please subscribe to Fund/Build/Scale on your favorite platform, and if you liked this episode, I hope you’ll give me a great rating. For now, you can find the Fund/Build/Scale newsletter on Substack. The podcast theme was written and performed by Michael Tritter and Carlos Chairez. Michael also edited the podcast and provided additional music, and I’m deeply grateful. Thanks for listening! Links: Fund/Build/Scale on Substack: https://fundbuildscale.substack.com Mayfield: https://www.mayfield.com Navin Chaddha on LI: https://www.linkedin.com/in/navinchaddha/ Securiti: https://securiti.ai/ Cognitive plumbing: https://www.mayfield.com/cognitive-plumbing/ Impedance matching: https://en.wikipedia.org/wiki/Impedance_matching Jensen Huang, founder and CEO, NVIDIA: https://www.linkedin.com/in/jenhsunhuang/ Satya Nadella, chairman and CEO, Microsoft: https://www.linkedin.com/in/satyanadella/ Thomas Kurian, CEO Google Cloud: https://www.linkedin.com/in/thomas-kurian-469b6219/ NVIDIA: https://www.nvidia.com OpenAI: https://openai.com/ "Trough of disillusionment,” Gartner hype cycle: https://en.wikipedia.org/wiki/Gartner_hype_cycle SambaNova Systems: https://sambanova.ai/ Podcast theme: "Artificio," by Michael Tritter and Carlos Chairez: https://laroda.bandcamp.com/track/artificio Fund/Build/Scale is sponsored by Mayfield Fund and Securiti.

Hi. I’m Walter Thompson. I worked in startups for years before becoming a journalist. Now, I’m launching “Fund/Build/Scale,” a podcast that explains how to create an AI startup when all you have is an idea. If you’re seeking general thought leadership or predictions about AI, this is not the podcast for you. Guests on “Fund/Build/Scale” are sharing strategies and frameworks that listeners can adapt and use inside their own companies. We’re discussing the ins and outs of fundraising, product development, regulation, going to market, and other essential topics. Across ten episodes, you’ll gain an insider’s perspective on what it takes to build an ethically responsible company in one of tech’s most competitive and rapidly evolving sectors. Entrepreneurs, VCs, academics, policy experts, enterprise software buyers and others will share their thoughts on addressing technical challenges, building teams, breaking into corporate sales and other core issues AI startups grapple with. I hope you’ll join this ongoing conversation about the intersection of AI innovation and investment. Subscribe now — the podcast will be available on all major platforms, with the first episode launching in February 2024.