Jamie Montgomery, Managing Partner at March Capital, explains why venture firms collaborate in syndicates rather than competing in zero-sum dynamics.
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“It's not a zero-sum game in the venture business. Usually, you know, there's four, five, six investors in a company, and it takes a 102 hundred million dollars to grow a great company, and we're one of those investors.”
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More from Jamie Montgomery
PredictionOpen · timeframe Dec 2031
Montgomery: Edge computing startup could reach $40B to $50B in 10 years
“So we're building one company that we think will be the AWS of the edge. We think we can build a company that's worth 40, fifty billion dollars in 10 years.”
Jamie MontgomeryDec 30, 2021▶ 42:03Jamie Montgomery – March Capital (Manager Meetings, EP.26)
Insight
Montgomery: VCs should hold top companies longer via life cycle funds
“I think you want to own these companies forever. I mean, I think they're great companies, and you sell them, and you pay tax. Could we have more of a life cycle? Yeah, I think that's a lesson learned, that we probably could stay in these companies longer, and …”
Jamie MontgomeryDec 30, 2021▶ 47:21Jamie Montgomery – March Capital (Manager Meetings, EP.26)
Disclosure
Montgomery: March Capital puts 75% of fund capital into 10 companies
“We'll concentrate at the 15% in any fund in one company, and then 75% of our investments will be in 10 companies in a fund, and we'll monitor companies for a couple of years before we invest, so we really know them well, so.”
Jamie MontgomeryDec 30, 2021▶ 16:34Jamie Montgomery – March Capital (Manager Meetings, EP.26)
AssertionPartly supported
Montgomery: 70% of Russell 2000 companies disappeared over twenty years
“I mean, I think if you look at the loss ratio in the Russell, 2000 over the last 20 years, you know, about 70% of the companies went away, and if you bought the top 10 companies in the Dow 20 years ago, you'd be holding, you know, 20 cents on the dollar right …”
Jamie MontgomeryDec 30, 2021▶ 17:19Jamie Montgomery – March Capital (Manager Meetings, EP.26)
PredictionNot checkable as stated
Montgomery: Pandemic rate of tech adoption is not likely to repeat
“All of a sudden, we had five years of innovation adoption in six months, but it's not likely to be repeated in our lifetime.”
Jamie MontgomeryDec 30, 2021▶ 18:25Jamie Montgomery – March Capital (Manager Meetings, EP.26)
AssertionContradicted
Montgomery: CrowdStrike is fastest growing cloud software company ever
“CrowdStrike is the fastest growing cloud software company ever.”
Jamie MontgomeryDec 30, 2021▶ 40:27Jamie Montgomery – March Capital (Manager Meetings, EP.26)
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