The Road Untraveled: VC Perspectives with Brian Hollins

Nnamdi Okike, Founder & Managing Partner, 645 Ventures

Key Takeaways:

1. Deals today can be more efficiently identified outside of the traditional technology hubs. In part because software companies today require less upfront capital, but also because and the technical talent needed to scale them is more distributed than ever before.

2. Founders should recognize whether their company (and category) are advantaged, disadvantaged or neutral as a result of covid.

3. Going forward teams will focus on the same unit economics, but put more emphasis on raising and maintaining sufficient cash runway to ensure they can achieve milestones before returning to the markets for fresh capital. 

Rob Go, General Partner, NextView Ventures

Key Takeaways:

1. E-com businesses that have subscription-like unit economics will begin to be treated more favorably as this crisis unlocks a new consistent consumer base.

2. Dislocation between economic realities and public markets exists, but early stage company valuations are still predominantly driven by their competition.

3. Reference checks are a critical and useful way to check on a founder in a remote environment.  

Brendan Wallace, Founder and Managing Partner, Fifth Wall

Key Takeaways: 

1. Emerging manager needs to be able to clearly articulate their edge in the market and what makes them win vs other new funds, especially in times where capital is harder to raise.

2. 90% of US retail still happens offline, and we don't know when they will open or how people will react when they do. Ecommerce has the opportunity to fundamentally shift the way we shop, and COVID has accelerated that adoption.

3. A greater portion of the workforce will want to work flexibly, and a greater portion of employers will allow it. Employees will need to have stronger home office setups, and there is an opportunity for technology companies to address this going forward.

Jules Maltz, General Partner, IVP

Key takeaways:

1. Companies don't go out of business because the idea fails, they go out of business because they run out of money. Protecting your resources allows you to pivot and weather the storm.

2. Building in "degrees of freedom" that allow the business to sustain revenue decline/downturns is critical and should be part of the scenario testing process.

3. For aspiring VCs, begin looking for investments now and building the skillset, there are some great companies being built and it is a great time to learn.

Key Takeaways:

1.  A great way to be a helpful ally is not to shift the burden and ask how you can help, but ask what programs and organizations they care about and donate your time and money to help those causes grow.

2. Warning systems fail because they don't tell us when they are no longer going to warn us. Whether within a company or out in society, all warning systems are only as reliant as the inputs they are built upon. 

3. Never have "fake days"- leaders should stop spending time on things that don't bring positive emotional value to them or positive economic impact to their business. 

Nihal Mehta, Founding General Partner, Eniac Ventures

Key Takeaways:

1. "Time spent on media" vs "ad dollars going to media" are not directly tied. Consumer business models are not designed to succeed in recessions, and many will need to adjust rapidly to survive.

2. Construction, real estate, insurance, health care are large components of GDP transforming very quickly, presenting new opportunities for investors.

3. It's a great time to build, but not a great time to sell. Spend time building and improving your product, as opposed to focusing on selling.

4. Customers and buyers are also facing tight budgets, and there are better uses of your team's energy and focus over the next 12 months.

Sheel Tyle, Founder and CEO, Amplo

Key Takeaways:

1. Public market run up is a result of investors struggling to find good places to deploy capital. Low interest rates and an increase in trading volumes can create false rallies, and don't necessarily suggest strong fundamentals.

2. Advice to Founders: Hope for the best and plan for the worst. 

3. Treat employees like partners, not commodities. Don't be afraid to share the rationale with your employees, and allow them to be a part of the journey.

4. The perseverance required to build during a downturn often leads to the creation of some of the greatest companies.

Miriam Rivera, Founder & Managing Partner, Ulu Ventures

Key Takeaways:

1. Role models and resources can change the trajectory of a student's professional journey. Find ways to take a chance on students who may not look like you, and drive the diversity you want to see in the World.

2. Founders should evaluate the spectrum of capital available when deciding to raise money. 

3. A renewed emphasis on survival, profitability and retention will help many companies be better positioned to succeed in the long run.

4. The venture investing life cycle is 10+ years, so many funds will maintain their long-term perspectives and continue working to identify the companies that will be category winners long term. 

Kiki Mills Johnston, Managing Director, DRIVE by DraftKings

Key takeaways:

1. Companies are trying to identify ways to engage fans when they aren't able to bring them into the stadium (VR, competitions, fantasy, etc)

2. A new light is being shed on e-sports, but we still need to ask "is this a means to an end or a new norm once all this settles".

3. Switch up your information sources to avoid information overload or only getting one sided perspectives.

Marlon Nichols, Founder & Managing Partner, MaC Venture Capital

Key Takeaways:

1. Companies that can thrive in this environment: health tech space, remote work, collaboration, government/reg tech.

2. Companies will have to make hard changes, but need to keep an eye on how the business is performing and whether you are still achieving the short term goals you set out to accomplish.

3.  Diverse founders are historically underfunded, but once funded, tend to outperform non-diverse teams by 30% on average. Investors should continue to find ways to source and support diverse teams much like the efforts of the 'Launch with GS' team.