From J.P.'s reflections on inefficiencies in the supply chain to his passion for groundbreaking technologies, discover the secrets that drive the next generation of supply chain innovations. Don't miss out on Keating's insights into the importance of diversity in the industry, his valuable lessons from several CVC firms, and a special segment where he pays tribute to a mentor who shaped his journey. Tune in for an episode filled with wisdom, revelations, and a sprinkle of humor!

1. [00:00:00] JP Keating introduces himself as the managing partner and founder of ProChain Ventures, emphasizing their mission to invest in next-gen supply chain technologies. Vlad Cazacu introduces the podcast, "The VC Architects," and highlights Keating's extensive experience in supply chain and procurement.
2. [00:01:00] The episode's sponsor, Flowlie, is introduced as the top choice for deal screening and network management. Vlad welcomes JP and expresses appreciation for his participation.
3. [00:02:00] JP Keating discusses his wide-ranging experiences across different industries and Fortune 500 companies. He speaks about his constant curiosity and the drive to learn and explore various facets of businesses.
4. [00:03:00] JP reflects on his career, contemplating different roles he could take on a global scale. He shares his passion for innovation and how his journey led him to the world of venture capital, especially during the rise of accelerators.
5. [00:04:00] Keating expresses his frustrations with the inefficiencies, waste, and poor working conditions prevalent in many enterprises. He laments the lack of transparency and data understanding in supply chains.
6. [00:05:00] Keating elaborates on his passion for fixing broken supply chains. He emphasizes the urgency to address both technological and societal challenges within the supply chain industry. The goal is not just to address the physical and financial issues but also to rectify societal problems.
7. [00:06:00] The conversation shifts to the importance of values and intentions in the venture space. Vlad Cazacu compares Keating's journey to that of a founder, highlighting the challenges and decisions faced.
8. [00:07:00] JP reminisces about his time around Boeing Ventures and its evolution. He shares insights into the early stages of corporate ventures and the challenges faced in fostering innovation within large corporations.
9. [00:08:00] Keating discusses his role in leading corporate-startup collaboration, especially during his tenure at utilities. He emphasizes the importance of supplier diversity programs, highlighting the potential for collaboration with small businesses, minority-owned entities, and other specialized groups.
10. [00:09:00] At ConAgra, JP encountered a surge in food innovation and AgTech. He details his efforts to establish a corporate venture initiative to invest in early brands, ingredients, and materials. Additionally, he reflects on the significant contributions of minorities and women in launching new food and beverage brands, advocating for a more inclusive approach.
11. [00:10:00] JP Keating discusses his ambition to create an external innovation program through the supply chain group, with a vision of making it the most innovative entity within the enterprise. He emphasizes collaboration with corporate ventures and development teams to drive innovation.
12. [00:11:00] Sharing his journey, Keating talks about the desire to create something of his own alongside partners who share the same mission. He expresses his appreciation for corporate venture, emphasizing the importance of co-investing and the role of big enterprises as customers for portfolio companies.
13. [00:12:00] The conversation touches upon the momentum Keating experienced in his career, leading him to fully embrace the venture space. He describes the excitement and challenges of the venture journey.
14. [00:13:00] Keating delves into the specifics of ProChain Ventures, highlighting their focus on supply chain tech, both software and hardware, at the pre-seed and seed stages. He gives insight into their investment criteria, targeting valuations under $15 million and initial investments ranging from $100,000 to $250,000.
15. [00:14:00] Continuing the discussion on ProChain's investment strategy, Keating mentions their flexibility in ownership percentages. They prioritize being a part of promising ventures, even if it means having a smaller ownership stake. He further simplifies their focus on supply chain technology for better understanding.
16. [00:15:00] Keating discusses ProChain Ventures' investment in a first-mile company and emphasizes their commitment to working with diverse founders. He highlights their focus on companies that significantly impact decarbonization and sustainability, rather than directly investing in sustainability-specific firms.
17. [00:16:00] Building on the theme of sustainability, JP notes the significant role of supply chain operations in global emissions. He advocates for efficiency improvements, alternative fuels, innovative transportation methods, and advanced predictive technology to reduce waste and resource consumption.
18. [00:17:00] Vlad Cazacu inquires about the composition of Limited Partners (LPs) supporting ProChain Ventures.
19. [00:18:00] Keating describes their unique investor appeal, emphasizing their holistic approach. While they project strong financial returns, their primary focus is on achieving broader societal impacts, such as cost reductions and enhanced transparency for their portfolio companies' customers.
20. [00:19:00] JP provides insights into ProChain's investment strategy, pointing out that they typically target companies poised for acquisition rather than IPOs. He explains the return profiles attractive to their investors and touches upon the importance of synergy across their portfolio companies.
21. [00:20:00] Keating describes ProChain Ventures' investment expectations. While they have companies on the unicorn trajectory, their primary focus is on helping them establish solid businesses that generate cash flow and are acquisition targets within a reasonable timeframe.
22. [00:21:00] Discussing the investment approach, Vlad Cazacu inquires if the focus on acquisition at smaller multiples was a co-development with LPs or Keating's lead. Keating clarifies that he led with this strategy and the accepting LPs favored it. He emphasizes his preference for investing in foundational technologies ("picks and shovels") over consumer-facing brands.
23. [00:22:00] JP discusses the challenges of scaling consumer brands and the high costs involved. He contrasts this with the more stable, albeit less glamorous, supply chain companies that underpin society, which became evident during the COVID-19 pandemic.
24. [00:23:00] Keating delves into the endless innovation opportunities within the supply chain sector. He emphasizes the urgency of adopting technology to address labor shortages and the necessity of such technology for businesses to remain competitive, especially in the context of reshoring initiatives.
25. [00:24:00] Reflecting on ProChain Ventures' success with LPs, Keating credits the team's vast experience across multiple Fortune 500 companies. He differentiates their focus from firms that concentrate only on last-mile delivery, emphasizing the broader view they take on the entire supply chain system.
26. [00:25:00] Vlad Cazacu acknowledges the favorable trends that Keating and ProChain Ventures have tapped into. He begins to inquire about the kind of individuals who have been involved in their journey.
27. [00:26:00] JP Keating shares his initial intent to involve supply chain professionals as investors, primarily those capable of making smaller investments. However, he realized that many of them lacked a comprehensive understanding of venture capital and were hesitant about the risks involved.
28. [00:27:00] Despite the challenges of engaging traditional supply chain professionals as investors, Keating emphasizes the importance of volume in deal discovery. He notes the difficulty in identifying the right people who would resonate with their vision, given the vast number of potential deals.
29. [00:28:00] Keating recounts reconnecting with long-lost contacts who, despite the time gap, showed interest in investing in ProChain Ventures' deals. He emphasizes the significance of relationships and the trust established over time.
30. [00:29:00] Reflecting on their investor base, Keating acknowledges the challenges of attracting institutional investors at their current stage. He mentions the potential of such partnerships in future fund iterations. He also humorously wishes for a psychology degree and better sales skills to navigate the complexities of fundraising.
31. [00:30:00] Keating talks about a former colleague and boss who played a significant role in his journey. The trust and belief of this individual gave Keating confidence in his venture.
32. [00:31:00] Discussion on the timing of launching ProChain Ventures and the challenges and uncertainties of global events affecting investment strategies.
33. [00:32:00] The dedication to portfolio companies is highlighted. Keating speaks about the motivation and commitment he feels toward the founders he invests in.
34. [00:40:00] Keating reflects on the various individuals who've influenced him over the years, both famous figures like Richard Branson and everyday workers.
35. [00:41:00] The episode winds down with a gratitude segment where guests are asked to express gratitude to one person who's impacted their journey.
36. [00:42:00] JP chooses a significant mentor from his professional life and highlights his resilience and leadership.
37. [00:43:00] The podcast episode concludes, thanking listeners and giving a nod to the sponsor, Flowlie.

You can find J.P. Keating on LinkedIn at https://www.linkedin.com/in/jp-keating/ and learn more about ProChain Ventures at https://www.prochain.vc/.

Learn more about Flowlie and how the platform can help you screen deals faster and discover the right connections from your network at https://www.flowlie.com.

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