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Sep 13, 2017 · 27m · 20vc

20VC: Why VC Is A Lifestyle Not A Job, Why You Must Do Post-mortems On Good and Bad Deals & Why Society Is On A Downgrade with Kathleen Utecht, Managing Partner @ Core Innovation Capital

Kathleen Utecht · 18m spoken Harry Stebbings · 7m spoken
0:00 / 0:00

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In this episode of The 20 Minute VC, host Harry Stebbings interviews Kathleen 'Kat' Utecht, Managing Partner at Core Innovation Capital, discussing why venture capital should focus on high-impact regulated sectors rather than superficial consumer apps. She shares key insights on VC post-mortems, regulatory compliance, founder alignment, and why venture capital is a lifestyle rather than a standard job.

How this conversation actually went

Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Harry holds 28.2% of the talking time here. How this is scored →

Harry as informed peer 2.5 Guest teaching 3.2 Guest disagreement 0.8 Harry pushing back 1.8
05100:0010:0020:002:41–5:35 · Harry as informed peer 1/10 Kat Utecht's Career Path from Sales to Venture Capital Harry asks a standard conversational opening question about Kat's path into VC from car sales. Kat outlines her upbringing and transition from GE Capital and startup founder to investor. The tone is entirely friendly and narrative-driven.5:35–10:31 · Harry as informed peer 3/10 Macro Thesis: Society on a Downgrade and Purposeful Innovation Harry introduces Peter Thiel's quote and asks Kat to clarify her 'society on a downgrade' thesis. When Harry asks her to name a single party to blame (founders, VCs, or LPs), Kat gently reframes the question, arguing that systemic enablement across media and politics is at play.10:31–14:30 · Harry as informed peer 4/10 VC Fund Timelines and Addressing Complex Global Problems Harry offers good pushback regarding fund structures, asking how long-term societal problem-solving fits standard VC fund lifecycles and extended exit horizons. Kat explains 10+2 fund structures and educates on how specialist funds handle regulatory nuances differently than generalist VCs.14:30–17:48 · Harry as informed peer 2/10 Regulatory Compliance vs. 'Move Fast and Break Things' Harry asks about applying 'move fast and break things' to fintech. Kat clarifies their strict zero-tolerance policy for regulatory hacking and details how Core handles deal post-mortems.17:48–20:52 · Harry as informed peer 2/10 Venture Capital as a Lifestyle and Founder Diligence Strategies Kat articulates VC as a lifestyle rather than a job. Harry asks how founders can stress-test investor responsiveness, and Kat offers concrete tactical tests like off-hours email responsiveness.20:52–25:58 · Harry as informed peer 3/10 Founder Alignment, Shared Values, and Rejecting Arrogance Harry challenges Kat's earlier comment about investing in people like herself, raising the issue of group bias. Kat directly rejects the premise, clarifying that she avoids clones but looks for shared core values like humility and kindness.2:41–5:35 · Guest teaching 2/10 Kat Utecht's Career Path from Sales to Venture Capital Harry asks a standard conversational opening question about Kat's path into VC from car sales. Kat outlines her upbringing and transition from GE Capital and startup founder to investor. The tone is entirely friendly and narrative-driven.5:35–10:31 · Guest teaching 3/10 Macro Thesis: Society on a Downgrade and Purposeful Innovation Harry introduces Peter Thiel's quote and asks Kat to clarify her 'society on a downgrade' thesis. When Harry asks her to name a single party to blame (founders, VCs, or LPs), Kat gently reframes the question, arguing that systemic enablement across media and politics is at play.10:31–14:30 · Guest teaching 4/10 VC Fund Timelines and Addressing Complex Global Problems Harry offers good pushback regarding fund structures, asking how long-term societal problem-solving fits standard VC fund lifecycles and extended exit horizons. Kat explains 10+2 fund structures and educates on how specialist funds handle regulatory nuances differently than generalist VCs.14:30–17:48 · Guest teaching 3/10 Regulatory Compliance vs. 'Move Fast and Break Things' Harry asks about applying 'move fast and break things' to fintech. Kat clarifies their strict zero-tolerance policy for regulatory hacking and details how Core handles deal post-mortems.17:48–20:52 · Guest teaching 3/10 Venture Capital as a Lifestyle and Founder Diligence Strategies Kat articulates VC as a lifestyle rather than a job. Harry asks how founders can stress-test investor responsiveness, and Kat offers concrete tactical tests like off-hours email responsiveness.20:52–25:58 · Guest teaching 4/10 Founder Alignment, Shared Values, and Rejecting Arrogance Harry challenges Kat's earlier comment about investing in people like herself, raising the issue of group bias. Kat directly rejects the premise, clarifying that she avoids clones but looks for shared core values like humility and kindness.2:41–5:35 · Guest disagreement 0/10 Kat Utecht's Career Path from Sales to Venture Capital Harry asks a standard conversational opening question about Kat's path into VC from car sales. Kat outlines her upbringing and transition from GE Capital and startup founder to investor. The tone is entirely friendly and narrative-driven.5:35–10:31 · Guest disagreement 1/10 Macro Thesis: Society on a Downgrade and Purposeful Innovation Harry introduces Peter Thiel's quote and asks Kat to clarify her 'society on a downgrade' thesis. When Harry asks her to name a single party to blame (founders, VCs, or LPs), Kat gently reframes the question, arguing that systemic enablement across media and politics is at play.10:31–14:30 · Guest disagreement 1/10 VC Fund Timelines and Addressing Complex Global Problems Harry offers good pushback regarding fund structures, asking how long-term societal problem-solving fits standard VC fund lifecycles and extended exit horizons. Kat explains 10+2 fund structures and educates on how specialist funds handle regulatory nuances differently than generalist VCs.14:30–17:48 · Guest disagreement 0/10 Regulatory Compliance vs. 'Move Fast and Break Things' Harry asks about applying 'move fast and break things' to fintech. Kat clarifies their strict zero-tolerance policy for regulatory hacking and details how Core handles deal post-mortems.17:48–20:52 · Guest disagreement 0/10 Venture Capital as a Lifestyle and Founder Diligence Strategies Kat articulates VC as a lifestyle rather than a job. Harry asks how founders can stress-test investor responsiveness, and Kat offers concrete tactical tests like off-hours email responsiveness.20:52–25:58 · Guest disagreement 3/10 Founder Alignment, Shared Values, and Rejecting Arrogance Harry challenges Kat's earlier comment about investing in people like herself, raising the issue of group bias. Kat directly rejects the premise, clarifying that she avoids clones but looks for shared core values like humility and kindness.2:41–5:35 · Harry pushing back 0/10 Kat Utecht's Career Path from Sales to Venture Capital Harry asks a standard conversational opening question about Kat's path into VC from car sales. Kat outlines her upbringing and transition from GE Capital and startup founder to investor. The tone is entirely friendly and narrative-driven.5:35–10:31 · Harry pushing back 2/10 Macro Thesis: Society on a Downgrade and Purposeful Innovation Harry introduces Peter Thiel's quote and asks Kat to clarify her 'society on a downgrade' thesis. When Harry asks her to name a single party to blame (founders, VCs, or LPs), Kat gently reframes the question, arguing that systemic enablement across media and politics is at play.10:31–14:30 · Harry pushing back 4/10 VC Fund Timelines and Addressing Complex Global Problems Harry offers good pushback regarding fund structures, asking how long-term societal problem-solving fits standard VC fund lifecycles and extended exit horizons. Kat explains 10+2 fund structures and educates on how specialist funds handle regulatory nuances differently than generalist VCs.14:30–17:48 · Harry pushing back 1/10 Regulatory Compliance vs. 'Move Fast and Break Things' Harry asks about applying 'move fast and break things' to fintech. Kat clarifies their strict zero-tolerance policy for regulatory hacking and details how Core handles deal post-mortems.17:48–20:52 · Harry pushing back 1/10 Venture Capital as a Lifestyle and Founder Diligence Strategies Kat articulates VC as a lifestyle rather than a job. Harry asks how founders can stress-test investor responsiveness, and Kat offers concrete tactical tests like off-hours email responsiveness.20:52–25:58 · Harry pushing back 3/10 Founder Alignment, Shared Values, and Rejecting Arrogance Harry challenges Kat's earlier comment about investing in people like herself, raising the issue of group bias. Kat directly rejects the premise, clarifying that she avoids clones but looks for shared core values like humility and kindness.

speaking balance: gold is Harry, purple is the guest (3 minute bins)

0:00 · Harry 94.7% · guest 5.3%0:00 · Harry 94.7% · guest 5.3%3:00 · Harry 14.6% · guest 85.4%3:00 · Harry 14.6% · guest 85.4%6:00 · Harry 11.7% · guest 88.3%6:00 · Harry 11.7% · guest 88.3%9:00 · Harry 17.5% · guest 82.5%9:00 · Harry 17.5% · guest 82.5%12:00 · Harry 10.2% · guest 89.8%12:00 · Harry 10.2% · guest 89.8%15:00 · Harry 10.4% · guest 89.6%15:00 · Harry 10.4% · guest 89.6%18:00 · Harry 12.4% · guest 87.6%18:00 · Harry 12.4% · guest 87.6%21:00 · Harry 19.2% · guest 80.8%21:00 · Harry 19.2% · guest 80.8%24:00 · Harry 44% · guest 56%24:00 · Harry 44% · guest 56%27:00 · Harry 100% · guest 0%27:00 · Harry 100% · guest 0%
Sharpest disagreement ▶ 21:11 Direct premise rejection on group bias

Kat immediately counters Harry's query about investing in people like herself by stating 'I don't want to invest in people like me for numerous reasons' and redefining her criteria around shared values rather than demographic or background similarity.

 Hardest push from Harry ▶ 10:31 Pressing on structural VC fund cycle limits

Harry challenges Kat's macro thesis by pointing out the mismatch between standard VC 10-year fund lifecycles and the extended runways needed to solve massive societal problems.

 Biggest teaching moment ▶ 11:56 Explaining generalist vs specialist regulatory oversight

Kat educates on why generalist investors misjudge fintech regulations, explaining that regulatory agencies like the CFPB will shut startups down completely if teams attempt to break rules like software companies.

 Harry holds his own ▶ 10:31 Host demonstrates institutional VC mechanism knowledge

Harry uses his knowledge of institutional fund economics to push back on Kat's idealism, questioning whether traditional exit cycles can realistically accommodate complex impact-oriented deals.
the scores for every segment, with the reasoning behind each
ChapterTopicHarry as informed peerGuest teachingGuest disagreementHarry pushing backWhy
Kat Utecht's Career Path from Sales to Venture Capital 1200 Harry asks a standard conversational opening question about Kat's path into VC from car sales. Kat outlines her upbringing and transition from GE Capital and startup founder to investor. The tone is entirely friendly and narrative-driven.
Macro Thesis: Society on a Downgrade and Purposeful Innovation 3312 Harry introduces Peter Thiel's quote and asks Kat to clarify her 'society on a downgrade' thesis. When Harry asks her to name a single party to blame (founders, VCs, or LPs), Kat gently reframes the question, arguing that systemic enablement across media and politics is at play.
VC Fund Timelines and Addressing Complex Global Problems 4414 Harry offers good pushback regarding fund structures, asking how long-term societal problem-solving fits standard VC fund lifecycles and extended exit horizons. Kat explains 10+2 fund structures and educates on how specialist funds handle regulatory nuances differently than generalist VCs.
Regulatory Compliance vs. 'Move Fast and Break Things' 2301 Harry asks about applying 'move fast and break things' to fintech. Kat clarifies their strict zero-tolerance policy for regulatory hacking and details how Core handles deal post-mortems.
Venture Capital as a Lifestyle and Founder Diligence Strategies 2301 Kat articulates VC as a lifestyle rather than a job. Harry asks how founders can stress-test investor responsiveness, and Kat offers concrete tactical tests like off-hours email responsiveness.
Founder Alignment, Shared Values, and Rejecting Arrogance 3433 Harry challenges Kat's earlier comment about investing in people like herself, raising the issue of group bias. Kat directly rejects the premise, clarifying that she avoids clones but looks for shared core values like humility and kindness.

Statements from this episode (11)

Opinion
Tech instant gratification is putting society on a downgrade
“We've given all these people these games and this instant gratification, and then we ask them to step back and contemplate major decisions. I think that's just a really hard thing to do right now, and I think you're seeing a whole society. As I said, it's on a…”
Kathleen Utecht Sep 13, 2017 ▶ 6:34
Assertion Not checkable as stated
Core Innovation Capital portfolio saved 25 million people $6B last year
“Our companies last year had saved twenty-five million people about six billion dollars, and that, that was just in two”
Kathleen Utecht Sep 13, 2017 ▶ 8:08
Disclosure
Core sequences long-horizon investments early in its 10-year fund cycles
“So, so our fund will, It was 10, 10 plus two, and you could see how in some of the things that we're funding that they're going to be take a full 10 years, and so we're very well aware when we're investing to invest in some of those companies in the beginning …”
Kathleen Utecht Sep 13, 2017 ▶ 10:49
Insight
Fintech cannot be solved by 20-year-olds in a garage
“We always joke that FinTech isn't just a Stanford problem. Very hard to take two, 20 year olds in a garage and try to solve a problem. You really have to understand how the ecosystem works and how you fit into it.”
Kathleen Utecht Sep 13, 2017 ▶ 12:10
Insight
Unlike ridesharing, the CFPB will shut down non-compliant fintech startups
“And especially in these highly regulated industries like healthcare or financial services, you have to realize it's not the hotel industry. It's not the taxi lobby. Like the CFPB, the Consumer Finance Production Bureau, they'll shut you down.”
Kathleen Utecht Sep 13, 2017 ▶ 12:35
Prediction Not checkable as stated
Generalist VCs assuming fintech startups can break regulatory rules will fail
“I think the good companies, they are having sector-specific funds in, and the ones that are getting funded, like, I think it's because the investors actually just don't understand what They're investing either, and think they'll just be able to break some of t…”
Kathleen Utecht Sep 13, 2017 ▶ 12:52
Insight
VCs with no failed portfolio companies are not taking enough risk
“We say if it doesn't, we're probably not taking enough risk, and there's some things that we want to invest in that we're, they're clearly binary.”
Kathleen Utecht Sep 13, 2017 ▶ 16:21
Insight
Being a VC is a lifestyle that must be as important as family
“So I think that's why I say it's a lifestyle, and I tell all these young people that are going to try to get into VC, like, to realize that this is their life, and that it's as important as their family, and it should be their top priority.”
Kathleen Utecht Sep 13, 2017 ▶ 19:24
Insight
Good VCs should deliver target introductions for founders within 48 hours
“If your investor is worth anything, it should be able to get you to the right person. And that person should have enough respect for them to either say, yeah, it's a fair or no, it's not. And so you should have that connection within 48 hours.”
Kathleen Utecht Sep 13, 2017 ▶ 20:33
Prediction Held up
Retail investors will lose a ton of money in ICOs
“So they scare me. I think there's going to be some really great ones, but I think people are going to lose a ton of money, like, and just everyday people. Whenever there's so much money going around, and people think they can make a quick buck, and there's a l…”
Kathleen Utecht Sep 13, 2017 ▶ 23:55
Insight
Regulatory chaos creates prime growth opportunities for strong startup teams
“So many changes, and they still haven't figured out what's going through it, and I think whenever there's, like, a lot of chaos and confusion, there's, when you have smart people that can build good products, they can really help people understand that market,…”
Kathleen Utecht Sep 13, 2017 ▶ 25:36
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