In this episode of "20 minutes vc," host Harry Stebbings interviews Tony Conrad, partner at True Ventures and co-founder/CEO of About.me. They discuss the evolving landscape of venture capital, the importance of founder-investor relationships, and the impact of personal dynamics on business success. Conrad emphasizes the value of instinct over thesis-driven investing, focusing on entrepreneurs' passion and vision for their products, as exemplified by his involvement with companies like Blue Bottle Coffee. He also reflects on his dual role as a founder and VC, the challenges of managing deal flow, and the pitfalls of high valuations. Additionally, Conrad shares insights on being an effective board member, stressing the need for empathy and genuine concern for founders' well-being. The conversation also covers the proliferation of capital and its effects on the startup ecosystem. Throughout, Stebbings interjects with product endorsements for Zoom and ViewedIt, suggesting their utility for business communications.
"So joining me in the hot seat today, we have Tony Conrad. Now, Tony is a partner at True Ventures, one of the leading early early stage funds on the west coast, with a portfolio including the likes of Automatic, the makers of WordPress, Fitbit, Blue Bottle Coffee, and recent unicorn peloton."
The quote introduces Tony Conrad and highlights True Ventures' successful investments, establishing the context for the conversation about startups and venture capital.
"My response Zoom, the number one video and web conferencing service providing one consistent enterprise experience that allows you to an array of activities including online meetings, video, webinars, collaboration enabled conference rooms and business im just to name a few."
This quote explains Harry Stebbings' preference for Zoom as a comprehensive video conferencing tool for various business activities.
"So I moved here from Jakarta, Indonesia, where I was running mergers and acquisitions and Corp Dev for BSN, which became group Denon, a big CPG firm based out of Paris in France."
The quote provides background information on Tony Conrad's professional experience before entering the venture capital industry.
"But as I've evolved and I kind of get to this phase of my career, I realized that I really simply follow my instincts around an entrepreneur. I'm not thesis driven at all."
This quote highlights the evolution of Tony Conrad's investment philosophy, emphasizing the significance of intuition and entrepreneur-focused strategies.
"It's about understanding how your product is going to intersect with people. Right? And it's having a vision around that and having conviction around that vision and that vision actually stacking up and feeling rational when they walk you through it."
The quote captures the essence of what Tony Conrad considers important in founder-market fit: a founder's vision and understanding of their product's role in consumers' lives.## Cafe Culture and Entrepreneurial Vision
...and then he had principles and a vision around what his cafe, how wooden would kind of be in that cafe. So there's no wi-fi, there's no plugs. These are things that counterintuitive, right?
This quote explains James's principles for his cafe, which deliberately go against the grain of typical cafe culture to create a specific atmosphere.
No, not at fact. That might work for Peter. And I think each investor, as I've learned, even within our firm, has a different approach.
Tony Conrad expresses his personal approach to investing, which differs from Peter Fenton's and emphasizes a tailored approach within the investment community.
Yes. So straddling is a bit difficult for those who don't know my background. I'm both an active founder of about me I founded a company called Sphere previously, and I'm also a partner at Trueventures.
This quote outlines Tony Conrad's dual roles and the symbiotic yet distinct demands of being a founder and a VC.
...entrepreneurship is a contact sport and you have to be out there and in the flow.
Tony Conrad emphasizes the active, hands-on nature of entrepreneurship and the importance of being immersed in the relevant networks and industry circles.## Importance of Community Interaction for Entrepreneurs
"If you're single and you've got flexibility, if you're not out there at least a minimum of three nights a week, then you should go do something different."
This quote emphasizes the importance of commitment and presence in the entrepreneurial community, suggesting that success requires significant social engagement.
"I'd rather go to a founder event than a date, it does not end well."
This quote humorously illustrates the sacrifices entrepreneurs sometimes make in their personal lives for the sake of their business ventures.
"I think we know, but just from the numbers, that's grown 330 now, as opposed."
This quote indicates the substantial growth in early-stage investment opportunities for entrepreneurs.
"It's great that more ideas are getting funded."
The quote highlights the positive aspect of increased capital availability, which enables a greater number of ideas to receive the necessary funding to develop.
"I'm not a fan of... party rounds at the beginning."
This quote expresses a concern about the lack of a committed lead investor in early funding rounds, which can leave entrepreneurs without the necessary guidance.
"It's really being able to have that one person who has alignment with you, that you are their priority, just as you need them to be."
This quote underscores the importance of having an investor who is fully committed and aligned with the entrepreneur's vision and priorities.
"You often learn through failure."
This quote reflects on the importance of learning from past experiences, especially failures, to improve one's approach and effectiveness as a board member.
"You never asked me how I was doing."
This quote from a founder to a board member highlights the need for personal connection and emotional support in the investor-founder relationship.
"The EQ portion of our business is probably the most important thing that we always have to pay attention to."
This quote emphasizes the significance of emotional intelligence in the business world, especially when it comes to supporting and understanding the personal challenges faced by entrepreneurs.## Importance of Personal Connection in Business
"It's very different to make a kind of a polite statement versus actually to be interested."
This quote emphasizes the difference between superficial politeness and true interest in someone's well-being, highlighting its importance in building meaningful business relationships.
"This should be interesting. I should have a Claxton horn for the 60 seconds."
This quote introduces the quick fire round, suggesting it will be a rapid and engaging part of the interview.
"Oh, Shackleton's journey. I love it. Great story of leadership."
This quote reveals Tony Conrad's appreciation for the book and the leadership lessons it contains.
"The partnership I have is such a mentorship for me."
This quote highlights the importance of the mentorship experience within Tony Conrad's partnership group.
"Go get a high valuation, I think is one of the most detrimental things that happens for these young entrepreneurs."
This quote criticizes the common industry advice to chase high valuations without considering the long-term impact on the company.
"Well, it probably means I do less deals for sure. I hand off more stuff."
This quote explains how Tony Conrad's personal journey influences his investment strategy, leading him to be selective and prioritize being helpful.
"As long as I feel like I'm being helpful, I'll figure out how to be on the board."
This quote outlines Tony Conrad's philosophy on board membership, which is guided by his contribution rather than a set number of positions.
"I backed him at a company called Smarter, which had an excellent outcome."
This quote explains the rationale behind Tony Conrad's recent investment decision, based on past success and the founder's qualities.
"I always get worried about these stumper questions."
This quote reflects Tony Conrad's initial apprehension about the interview's challenging questions, which turned out to be unfounded.
"Zoom really is a must check out for your business."
This quote underscores the recommendation for businesses to consider Zoom for their video and web conferencing needs.
"Viewdit enables sales professionals, executive leaders and customer support teams to easily record personalized videos."
This quote describes the functionality of Viewed and its role in enhancing personalized communication through video.