About This Episode

In this candid discussion, Patric Hellermann and Shub Bhattacharya dive deep into what makes an ideal co-investor in the AECS startup ecosystem. Drawing from Vinod Khosla's observation that 70% of VCs add negative value, they explore the characteristics of valuable investment partners and share personal experiences from their work at Foundamental.

In This Episode

Most VCs chase the dream of being in the top 10% but ironically end up in the bottom 70% due to poor advice and overconfidence.

The only thing that truly scales in venture capital is knowledge, while brand name and network have limitations that many founders overlook.

Response time to founder outreach serves as a key indicator of investor quality, with responses within 60 minutes being highly favorable.

Working with equity partners versus employed investors creates different incentive structures and experiences for founders.

Timestamps

(00:00) - Introduction

(01:26) - Discussion of co-investor qualities

(04:12) - Framework for evaluating investors

(22:50) - Game theory and prisoner's dilemma in co-investing

(32:30) - Importance of investor response time

(35:43) - Equity partners versus employed investors

(38:05) - Final thoughts on investor selection

Resources or Companies Mentioned

Mosaic Ventures: https://www.mosaicventures.com/Chaffin Ventures: https://www.chaffinventures.com/Bessemer Venture Partners: https://www.bvp.com/General Catalyst: https://www.generalcatalyst.com/

Connect With Us

Practical Nerds Website: https://practicalnerds.com/

Subscribe to the Newsletter: https://www.linkedin.com/newsletters/practical-nerds-7180899738613882881/

Foundamental: https://www.foundamental.com/

Patric Hellermann: https://www.linkedin.com/in/aecvc/

Shub Bhattacharya: https://www.linkedin.com/in/shubhankar-bhattacharya-a1063a3/

#VentureCapital #ConstructionTech #CoInvesting