Responding to a popular request, we are now sharing transcripts of our investor podcast interviews in this new series. The following interview with SC Moatti was recorded in May 2018.
SC Moatti, Managing Partner at Mighty Capital, discusses Whales, Dolphins, and more. A wonderful conversation full of wisdom and pragmatism.
Sramana Mitra: Let’s start by introducing our audience to yourself as well as talk a little bit about Mighty Capital. How big is the fund? What kind of investments do you like to make? What check sizes do you like to write?
SC Moatti: Absolutely. I’m the Founder and Managing Partner of Mighty Capital. The fund is myself plus my two partners. We write small check sizes at a later stage, which means it’s typically under a million dollars. The reason we’re in the lucky position to invest at a later stage is, we give our portfolio companies a very unique and very important value add, which is access to hundreds of thousands of early adopters and product managers through my organization Products That Count.
Different companies in the portfolio use that access differently. Some use it to sell their product and services for customer generation and revenue acceleration purposes. Some use it for business partnerships and then some for hiring.
Sramana Mitra: I see. Very interesting. Can we talk a little about the specifics and then we’re going to go to some portfolio companies and going through some case studies to understand how people are using your platform. What about geography?
SC Moatti: We invest on the West Coast.
Sramana Mitra: What about industry sectors?
SC Moatti: We invest in, what I call, the third wave of connected technologies. I’m an expert in that field. I wrote a bestselling book on this. I spent a dozen years building products and companies in the field of mobility and connected technologies. After I sold my last company, I spent a few years at Facebook.
We are in the third wave of connected technology. The first wave being, put a phone in every hand. The second is, collect data about everything and everyone. The third wave is now that you have phone and data, disrupt the enterprise and healthcare. As you do that, some of the infrastructure is going to need to be enhanced to meet the needs of enterprises and healthcare organizations. These are the segments we invest in as part of that third wave of technology.
Sramana Mitra: Is it all B2B?
SC Moatti: Some of it is B2B. Some of it is B2C. Right now, I am not seeing a lot of opportunities in B2C simply because the platforms that enable disruption of consumer offerings isn’t quite there. Among the upcoming platforms, Blockchain and genomics platforms are very interesting area but are not quite yet consumer ready.
Then there are a few other platforms around robotics and such, which people call IoT sometimes which isn’t necessarily yet ready for software innovation. It’s more of a hardware play at this point, which means that it’s more in the hands of the big companies.
Sramana Mitra: When you say you have hundred thousand early adopters, there must be a correlations with what kinds of companies you’d like to invest in and this community that you’ve built. What is the composition of that?
SC Moatti: Those early adopters are product managers and marketing managers. They are, generally, tech professionals working for companies across many different industries. They work in the innovation divisions of very large conglomerates. Those people are basically early adopters for themselves. They’ll test the latest stuff but most importantly, for their organization.
They are the ones who are bringing the new tools, the technologies, the new services inside their organization. They do that across that United States and across pretty much all verticals. It used to be that we were mostly in the tech industry. Now, about 20% of our audience are in life science. It’s across industries now.