Hunter Walk, co-founder of Homebrew, explains how their criteria for participating in seed deals evolved after transitioning to a self-funded investment model.
“We used to not care who the other investors were. We're like, we're going to help you and we'll get other people great around us. Now we actually care about quality, you know, of the lead investor.”
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“Like the very least you're missing opportunities to de-stress founders in a way that will increase the probability of a wonderful outcome. And at the worst, you know, you're exploiting, you know, founders who have all their eggs in one basket, you know, while …”
Hunter WalkJan 31, 2023▶ 20:31Homebrew’s Hunter Walk & Satya Patel: Why $100M is Not Enough to Execute a Seed Strategy | 20VC #972 · 20VC with Harry Stebbings
Opinion
Hunter Walk: There is no Series A crunch in tech
“I tend to be on the side that there is no Series A crunch in the sense that I have yet to find a company that I thought should be able to raise a Series A fail to do so.”
Hunter WalkApr 3, 2017▶ 7:3720VC: Homebrew's Hunter Walk on Why There Is No Series A Crunch, How To Package Portfolio Companies For The Next Round & Why The Bridge Round Is Not Always A Negative Sign?
PredictionNot checkable as stated
Walk: Overcapitalized startups face silent disappearance, low-value acquihires, or noisy collapse
“And so I think for most of those companies, layoffs are going to turn into silent disappearance low value acquihires or noisy collapses.”
Hunter WalkJan 31, 2023▶ 1:01:55Homebrew’s Hunter Walk & Satya Patel: Why $100M is Not Enough to Execute a Seed Strategy | 20VC #972 · 20VC with Harry Stebbings
Insight
Walk: Consensus decision-making is foolish for venture funds with 3+ partners
“If there were three or more of us, consensus would be You know, a foolish goal wouldn't serve us or the founders well.”
Hunter WalkJan 31, 2023▶ 5:44Homebrew’s Hunter Walk & Satya Patel: Why $100M is Not Enough to Execute a Seed Strategy | 20VC #972 · 20VC with Harry Stebbings
AssertionNot checkable as stated
Walk: Homebrew never missed an outlier investment due to consensus rules
“We look back And we've struggled over 10 years to find an occasion where lack of, you know, if there was lack of consensus, it meant we didn't do the deal. And I don't think we have any, you know, quote unquote outliers that were, you know, false negatives bec…”
Hunter WalkJan 31, 2023▶ 6:56Homebrew’s Hunter Walk & Satya Patel: Why $100M is Not Enough to Execute a Seed Strategy | 20VC #972 · 20VC with Harry Stebbings
Insight
Walk: De-risked seed investing does not exist
“I don't think there's such a thing as like, De-risked seed. Like you should be betting on companies that in a success scenario can be wildly, wildly successful and worth a, you know, incredible amount of capital and want, you know, to own a percentage of those…”
Hunter WalkJan 31, 2023▶ 32:49Homebrew’s Hunter Walk & Satya Patel: Why $100M is Not Enough to Execute a Seed Strategy | 20VC #972 · 20VC with Harry Stebbings
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