On this episode of Nothing Ventured, Aarish Shah chats with Kiran Mehta
from Mercia Ventures about the importance of doing what you love and
excelling at it rather than trying to live in a parallel universe. They
discuss the significance of working with smart people, navigating the
chaos of venture capital, and how good founders can succeed in any
market condition. Kiran emphasizes the need for founders to prioritize
growth while being capital efficient and focusing on actionable steps to
reach milestones. Tune in to gain insights into the world of venture
capital and the strategies that lead to success.
01:36 - Guest Introduction: Kiran Mehta
01:47 - Thoughts on Education and Career Choices
03:08 - Impact of AI and Changing Job Market
03:38 - Humanities Backgrounds in Tech
04:55 - Personal Career Reflections
05:06 - Education System and Career Paths
06:12 - Evolution of Job Market and Skills
06:39 - Career Decisions and Luck
07:19 - Joining Mercia Ventures
07:33 - Breaking into Venture Capital
09:14 - Day-to-Day Life in Venture Capital
10:05 - Assessing Deals and Building Relationships
10:57 - Importance of Founder-Investor Fit
11:28 - Transaction and Portfolio Management
12:33 - Managing a Large Portfolio
13:59 - Scalability Challenges in Venture Capital
15:22 - Support Structures at Mercia
16:57 - Building Effective Boards
17:08 - Scalability and Network in Venture
18:01 - Economies of Scale in Venture Capital
18:47 - Proactive Problem Solving in Portfolio Management
19:08 - State of Venture Capital Today
19:43 - Shift from Growth at All Costs to Capital Efficiency
20:56 - Balancing Growth and Profitability
21:10 - Intersection of Growth and Capital Efficiency
22:14 - Profitability vs. Growth Dilemma
23:25 - Strategic Decision-Making for Founders
24:18 - Optionality in Funding Strategies
25:10 - Trends in Software and SaaS Businesses
26:56 - Role of Venture in R&D Heavy Businesses
27:20 - Challenges in Software Sales
28:00 - Market Changes and Founder Strategies
29:06 - Venture as a Goal vs. Business Fundamentals
30:19 - Survivorship Bias in Venture Success Stories
31:08 - Importance of Revenue-Driven Businesses
32:03 - Preference Stacks and Founder Outcomes
32:34 - Differences in Venture Ecosystems: US vs. UK/Europe
33:13 - Factors Affecting Unicorn Rates
34:00 - Founder Motivations and Market Realities
34:59 - Future of Venture Capital
35:15 - Desired Changes in Venture Capital
35:58 - Evolution of Fundraising Processes
36:40 - Importance of Articulating Vision
37:01 - Focus on Societal Impact and Innovation
37:20 - Alternative Fundraising Approaches
38:03 - Value of Pitch Decks and Financial Models
39:08 - Long-Form Memos vs. Pitch Decks
39:57 - Nuances in Financial Models
40:50 - Transparency in Fundraising Process