Sramana Mitra: How do you see unicorn mania in Israel? As a seed investor, you could get buried under later-stage liquidation preferences. How do you protect yourself? Guy Resheff: One thing that I would say that’s markedly different is that, in absolute terms, the number of unicorns generated in Israel is significantly smaller. That has
Heidi Roizen: The point is to understand the terms and understand how they impact not only your return but the motivations of everyone else around the table. When you set up a situation where someone is going to make three times their money no matter what and they’re going to be the first money out,
Sramana Mitra: If you look at the last six months of your deal flow, could you synthesize some of the most interesting trends that you have observed? Guy Resheff: A common one is artificial intelligence. It’s everywhere. Sramana Mitra: SaaS for large markets is kind of over. Everything in SaaS right now is niche. Guy
Sramana Mitra: The sad thing is when you’re going for job interviews and negotiating job packages, the companies will not tell you all these details. Heidi Roizen: By the way, I now have to say the disclaimer. I am not currently representing DFJ or my partners. I just had an argument with somebody yesterday about
Sramana Mitra: A follow-on question that comes to my mind is that if you are looking for most of the core R&D to be done before you come in, what is the assumption about how the prospective company funds that R&D phase? Is it coming out of university research? Is it coming out of government
Sramana Mitra: The subtext of all these things that you’re saying is that there aren’t that many billion-dollar exits. Ultimately, the only valuation that matters is your exit valuation. If you’ve got a billion-dollar valuation in a private round and then you exit for $200 million, what is that going to do for you? Heidi
Responding to a popular request, we are now sharing transcripts of our investor podcast interviews in this new series. The following interview with Guy Resheff, Grove Ventures was recorded in December 2017. He is no longer with the firm. Guy Resheff, Partner at Grove Ventures, focuses the spotlight on Israel. Sramana Mitra: Tell us about your
Sramana Mitra: Are there companies that have crossed $100 million in revenue? Hernan Kazah: Certainly. We have a few in our portfolio. I was mentioning Netshoes. That’s over a billion dollars in revenue. There are a few companies that have gone over $100 million. Many have gone over $20 million. Sramana Mitra: What do you