The Exchanges

Q Well, don't worry. I'm sure you won't look back. It's not like this is recorded or anything. Now, the motto at Ludlow Ventures, your VC firm, uh, is VC done right. What do you think is wrong, then, with the archetypal VC, and how do you differentiate yourself at Ludlow?

A Yeah, you know, I, there are, when we, when we first started, you know, money, there's always been this notion amongst A number of VCs. Certainly not all. There are a lot of fantastic VCs, and I've had the great pleasure of, you know, being coached and mentored by many of them, but there was this common feeling amongst entrepreneurs that VCs were bullies, and you know, the VCs would start negotiating with entrepreneurs, and they would back them into a corner, and they would just, there was this, again, this mentality that money kind of Was the lead, and it was like this top-down mentality, and it, it never started a relationship off on the right foot between founder and VC. So, when we started, we said, like, this is, this is backwards. Like, the entrepreneurs are the ones who are doing the work that enables us to do our work, and so I wanted to treat founders similarly and accordingly. So, when we, when we talked to New founders now, and when we invest in companies, we're very, very cognitive of the fact that our job only exists because of them, and that switch in perspective, I think, is a big differentiator. It allows us to become very, very close with the people we invest in. There's not a lot of ego involved, and then through that, it breeds this very fine level of transparency that is, you know, helpful to both us and the company.

AI assessment note: “that switch in perspective, I think, is a big differentiator.”

Q And how do you find the fundraising process as a VC? It's often quite a neglected part of the VC industry. We often hear, obviously, about startups pitching to you. But how do you feel pitching to, to LPs?

A I, you know, I, It's a, uh, it's a great question. I would prefer if I didn't have to fundraise as would anybody, I imagine. Um, but it, it really, the benefits of fundraising are more than just getting capital for your fund. Um, you know, you're, you're building a network and you're building friendships with people throughout the entire process. There are lots and lots of individuals, um, who I'm now close with, who I would have had no relationship with if I did not have the need to fundraise. I think this actually becomes an advantage. You know, there are certain firms who invest off balance sheets of big corporations, which is great, and they do really wonderful things, but their networks are always generally smaller, um, and I think a lot of that has to do with the lack of fundraising, because they're not pushed to go meet and interact with new people.

AI assessment note: “I would prefer if I didn't have to fundraise as would anybody”

Q And do you think advisors are crucial for the young generation moving into this industry?

A Oh yeah. I think that it is the most important factor of anything. I mean, again, I still, I still have little idea of what I'm doing. This industry changes every single second. And you know, if you surround yourself with smart people, um, it's certainly to, to your benefit. I mean, again, I, I know that you had Jason on a few weeks later. I had, you know, I cherish the time I get to spend with these people. I was in San Francisco yesterday, and I was able to sit down with him for a few minutes, and there was something that I really was struggling with internally, like, with raising this new fund, and I wanted his opinion on it, and it just provided a ton of clarity. I mean, I'm not pretending at all to know more than anybody else. I learn every single day from these people, and, um, I feel very, very fortunate to say that.

AI assessment note: “Oh yeah. I think that it is the most important factor of anything.”

Q Well, don't worry. I'm sure you won't look back. It's not like this is recorded or anything. Now, the motto at Ludlow Ventures, your VC firm, uh, is VC done right. What do you think is wrong, then, with the archetypal VC, and how do you differentiate yourself at Ludlow?

A Yeah, you know, I, there are, when we, when we first started, you know, money, there's always been this notion amongst A number of VCs. Certainly not all. There are a lot of fantastic VCs, and I've had the great pleasure of, you know, being coached and mentored by many of them, but there was this common feeling amongst entrepreneurs that VCs were bullies, and you know, the VCs would start negotiating with entrepreneurs, and they would back them into a corner, and they would just, there was this, again, this mentality that money kind of Was the lead, and it was like this top-down mentality, and it, it never started a relationship off on the right foot between founder and VC. So, when we started, we said, like, this is, this is backwards. Like, the entrepreneurs are the ones who are doing the work that enables us to do our work, and so I wanted to treat founders similarly and accordingly. So, when we, when we talked to New founders now, and when we invest in companies, we're very, very cognitive of the fact that our job only exists because of them, and that switch in perspective, I think, is a big differentiator. It allows us to become very, very close with the people we invest in. There's not a lot of ego involved, and then through that, it breeds this very fine level of transparency that is, you know, helpful to both us and the company.

AI assessment note: “that switch in perspective, I think, is a big differentiator”

Q And how do you find the fundraising process as a VC? It's often quite a neglected part of the VC industry. We often hear, obviously, about startups pitching to you. But how do you feel pitching to, to LPs?

A I, you know, I, It's a, uh, it's a great question. I would prefer if I didn't have to fundraise as would anybody, I imagine. Um, but it, it really, the benefits of fundraising are more than just getting capital for your fund. Um, you know, you're, you're building a network and you're building friendships with people throughout the entire process. There are lots and lots of individuals, um, who I'm now close with, who I would have had no relationship with if I did not have the need to fundraise. I think this actually becomes an advantage. You know, there are certain firms who invest off balance sheets of big corporations, which is great, and they do really wonderful things, but their networks are always generally smaller, um, and I think a lot of that has to do with the lack of fundraising, because they're not pushed to go meet and interact with new people.

AI assessment note: “I would prefer if I didn't have to fundraise as would anybody, I imagine.”

Q And do you think advisors are crucial for the young generation moving into this industry?

A Oh yeah. I think that it is the most important factor of anything. I mean, again, I still, I still have little idea of what I'm doing. This industry changes every single second. And you know, if you surround yourself with smart people, um, it's certainly to, to your benefit. I mean, again, I, I know that you had Jason on a few weeks later. I had, you know, I cherish the time I get to spend with these people. I was in San Francisco yesterday, and I was able to sit down with him for a few minutes, and there was something that I really was struggling with internally, like, with raising this new fund, and I wanted his opinion on it, and it just provided a ton of clarity. I mean, I'm not pretending at all to know more than anybody else. I learn every single day from these people, and, um, I feel very, very fortunate to say that.

AI assessment note: “Oh yeah. I think that it is the most important factor of anything.”

Q Absolutely. And looking at the Ludlow portfolio, it's, it's incredibly varied in terms of sector, leading me to ask, what's your approach to deal flow?

A Yeah, so we just optimize 100% on founders. I mean, we say, there's certain things we don't do, so we don't do life sciences, we don't generally do any medical devices or things of that nature, but, um, You know, we cast a very broad net, and, you know, whether it's consumer or enterprise or hardware or software, it doesn't matter to us. All that matters is that the people we're investing in are stellar. I mean, like, I guess that's not even a great edge to that. I mean, beyond that, they have to be people who can communicate their ideas to the public, um, to their teams, to, you know, who can, can really articulate the vision to themselves, really. Um, And they can rally a troop of people and supporters around them, and, and those are really special people, and if, if we can identify and find those individuals, then we're excited to invest in, in that person, regardless of what they're building.

AI assessment note: “we just optimize 100% on founders. I mean, we say, there's certain things we don't do”

Q Absolutely. And looking at the Ludlow portfolio, it's, it's incredibly varied in terms of sector, leading me to ask, what's your approach to deal flow?

A Yeah, so we just optimize 100% on founders. I mean, we say, there's certain things we don't do, so we don't do life sciences, we don't generally do any medical devices or things of that nature, but, um, You know, we cast a very broad net, and, you know, whether it's consumer or enterprise or hardware or software, it doesn't matter to us. All that matters is that the people we're investing in are stellar. I mean, like, I guess that's not even a great edge to that. I mean, beyond that, they have to be people who can communicate their ideas to the public, um, to their teams, to, you know, who can, can really articulate the vision to themselves, really. Um, And they can rally a troop of people and supporters around them, and, and those are really special people, and if, if we can identify and find those individuals, then we're excited to invest in, in that person, regardless of what they're building.

AI assessment note: “we cast a very broad net, and, you know, whether it's consumer”

Q And Brad Feld, who actually is on the show next week, um, and Eric Rees are two of your advisors. How did you get such incredible figures on board so early, and what did you say to them?

A So I basically researched what a restraining order is and then tried all, you know, with all of my power to move right up into that point, but not past that line. Um, you know, Brad, Brad, Brad specifically. So, you know, here's an individual who I can virtually offer nothing to. I mean, he's at the top of the VC game for sure. Um, he's prolific in his speaking and his writing. Um, he's networked a, he could get anybody On the phone, he wants to. Um, I, I literally can offer him nothing, especially professionally, like zero. And, and this individual has been so giving and wonderful. A strong mentor of mine. He is a really very, very special person. So, um, you know, and it's a big inspiration too, and it's a good lesson.

AI assessment note: “researched what a restraining order is and then tried all, you know, with all”

Q Okay, well, can you, can you name one of them?

A I mean, like, you know, I would, I would talk to a specific company, um, actually, this is a good example, so, um, You know, today we're all about hustle. That word is overused, but we really, really, really, if we're excited about a company, we will do whatever it takes to get involved in that company. And back then, you know, I would reach out to a company and they'd say, sorry, like, I think our round is full. And I'd reply, oh, thank you so much for your time. Appreciate it. Good luck. Today, if I get, uh, sorry, our round is full, I fly to wherever that company is and bang on their door until they let me in. Um, So I unfortunately passed on some really fantastic opportunities with emails like, okay, great. Sounds good. Good luck. Um, and that, that was a, that was a good lesson to learn. And I really hope that in, you know, five, six years from now too, I look back at this conversation and also cringe and say, God, you're such an idiot. Like, and hopefully that meant, that means I'm learning still.

AI assessment note: “I would talk to a specific company, um, actually, this is a good example”

Q Okay, well, can you, can you name one of them?

A I mean, like, you know, I would, I would talk to a specific company, um, actually, this is a good example, so, um, You know, today we're all about hustle. That word is overused, but we really, really, really, if we're excited about a company, we will do whatever it takes to get involved in that company. And back then, you know, I would reach out to a company and they'd say, sorry, like, I think our round is full. And I'd reply, oh, thank you so much for your time. Appreciate it. Good luck. Today, if I get, uh, sorry, our round is full, I fly to wherever that company is and bang on their door until they let me in. Um, So I unfortunately passed on some really fantastic opportunities with emails like, okay, great. Sounds good. Good luck. Um, and that, that was a, that was a good lesson to learn. And I really hope that in, you know, five, six years from now too, I look back at this conversation and also cringe and say, God, you're such an idiot. Like, and hopefully that meant, that means I'm learning still.

AI assessment note: “I would talk to a specific company, um, actually, this is a good example”

Q And Brad Feld, who actually is on the show next week, um, and Eric Rees are two of your advisors. How did you get such incredible figures on board so early, and what did you say to them?

A So I basically researched what a restraining order is and then tried all, you know, with all of my power to move right up into that point, but not past that line. Um, you know, Brad, Brad, Brad specifically. So, you know, here's an individual who I can virtually offer nothing to. I mean, he's at the top of the VC game for sure. Um, he's prolific in his speaking and his writing. Um, he's networked a, he could get anybody On the phone, he wants to. Um, I, I literally can offer him nothing, especially professionally, like zero. And, and this individual has been so giving and wonderful. A strong mentor of mine. He is a really very, very special person. So, um, you know, and it's a big inspiration too, and it's a good lesson.

AI assessment note: “researched what a restraining order is and then tried... to move right up into that point”