Sramana Mitra: At what stage did you encounter AddStructure and how did you encounter them? Mark Hasebroock: We have an office in Chicago and I have a partner there. David is very plugged into what’s happening in Chicago. He heard about this at an event that he was at. He realized that it was something
Sramana Mitra: You’re seeing more capital-efficient executions, which is good. In our philosophy, we strongly recommend that people bootstrap and be as capital-efficient as possible as long as possible before raising money. Even when they raise money, we prefer that they don’t raise huge amounts of capital, which is completely counter to the unicorn mania
Sramana Mitra: What about geography? You are based in the Bay Area, right? Rami Elkhatib: Yes, our office is in Menlo Park. The example I just gave you started out as an East Coast investment. The new CEO that we recruited is in the Bay Area. Then, the CEO built the management team around him
Sramana Mitra: That philosophy of “operators do not make good investors” does not exist in Silicon Valley. In Silicon Valley, operators are highly-valued. Mark Hasebroock: It’s really interesting. I hear it a lot. What you have is a mindset in the Midwest because of insurance, private equity, and hedge funds. They have a quantitative analysis
Sramana Mitra: Talk a bit about your current portfolio. This is your second fund. How much was the first fund? Alan Chiu: The first fund was $50 million and it was invested across FinTech and software. Sramana Mitra: How many companies did you invest in from the first fund? Alan Chiu: I wasn’t with XSeed
Rami Elkhatib: We had been interested in the area of security, specifically application security. We found a fantastic technical team. We found the deep IP and the fantastic product. When we closed that Series A, we had a full product and a full technical team. I hope that illustrates where we tend to be a little
Responding to a popular request, we are now sharing transcripts of our investor podcast interviews in this new series. The following interview with Mark Hasebroock of Dundee Venture Capital was recorded in February 2018. Mark Hasebroock is Founder at Dundee Venture Capital, based in Omaha, Nebraska. The firm invests in the Midwest, likes small, capital-efficient deals and
Responding to a popular request, we are now sharing transcripts of our investor podcast interviews in this new series. The following interview with Alan Chiu of XSeed was recorded in February 2018. Alan Chiu is Partner at XSeed, a seed-focused venture fund based in Silicon Valley. Alan talks about the level of risk his firm is willing