September 20, 2024

Molly Alter, Partner (Northzone), $4B AUM | Software for Hardware, EU vs USA, Vertical AI, VC Biases

51 minutes

Molly O'Shea talks to Molly Alter, Partner at Northzone, a $1.2 billion fund with around $4 billion AUM and discusses her successful investments (Frame.io’s $1.2B exit to Adobe), founder qualities, VC biases and decision-making, as well as the firm's global approach to identifying opportunities.

Alter believes in the potential of Europe's tech ecosystem, citing higher net IRR for European VC funds compared to North American ones over 10-15 year horizons. She shares perspectives on US and European VC landscapes, successful investments, and emerging opportunities in vertical AI and software for hardware.

Focusing on meritocracy and founder-friendliness with a balanced approach between US and European investments, Alter also explains why she's bullish on workflow SaaS and vertical AI, despite changing market conditions and valuation multiples.

Follow on Twitter

https://x.com/MollySOShea

Check out Northzone:

https://northzone.com/

Subscribe to Sourcery:

https://www.sourcery.vc/

Sponsor: Archer

Archer's Midnight is a piloted four passenger aircraft designed to perform rapid back-to-back flights with minimal charge time between flights. Learn more about how Archer is set to open up a new world of opportunity for passengers by providing safe and efficient access to people, places, and events across the communities they live, visit https://www.archer.com/

Companies mentioned:

Frame.io - https://frame.io/

Glia - https://www.glia.com/

Wayve - https://wayve.ai/

Spotify - https://www.spotify.com/

Klarna - https://www.klarna.com/

Spring Health - https://www.springhealth.com/

Adobe - https://www.adobe.com/

Mistral AI - https://mistral.ai/

TIMESTAMPS:

(00:00) Intro and Preview

(03:07) Molly Alter’s Career Journey

(07:26) Insights from Working in Different VC Firms

(11:38) Investment Focus and Thesis

(14:13) Sponsor: Archer

(15:28) Impactful Investments: Frame.io and Glia

(18:54) Qualities of World-Class CEOs and Founders

(22:17) Northzone: History, Strategy, and Values

(26:06) Global Reach and US-Europe Investment Split

(29:13) Defending European Tech Ecosystem

(32:27) Innovation from Restrictions in Europe

(35:35) Software for Hardware: Opportunities and Challenges

(42:08) Specific Areas of Interest in Software for Hardware

(45:05) The Future of SaaS and Hybrid SaaS Models

(47:30) Example of Hybrid SaaS: GovDash

(50:26) Wrap

–

Recommended Podcast:

🎙️ This Won't Last - Eavesdrop on Keith Rabois, Kevin Ryan, Logan Bartlett, and Zach Weinberg's monthly backchannel. They unpack their hottest takes on the future of tech, business, venture, investing, and politics.

Apple Podcasts: https://podcasts.apple.com/us/podcast/this-wont-last-with-keith-rabois-kevin-ryan-logan/id1765665937

Spotify: https://open.spotify.com/show/2HwSNeVLL1MXy0RjFPyOSz

YouTube: https://www.youtube.com/channel/UCxmO9C_PEjbMf0Z8lYjwT7Q

...more