Responding to a popular request, we are now sharing transcripts of our investor podcast interviews in this new series. If you haven’t already, please study our free Bootstrapping course and the Investor Introductions page. The following interview with Jon Staenberg of Staenberg Venture Partners was recorded in November 2017. Jon Staenberg, Managing Partner at Staenberg Venture
Sramana Mitra: I’m asking a question where the entrepreneurs, by definition of the type of opportunity, would not be raising money from the big funds. In this case, the opportunity is not to act as a seeder. The opportunity is to fund some entrepreneurs and then exit straight away. Jonathan Lewy: I guess that depends
Sramana Mitra: You said you argue with a lot of your industry colleagues on this topic. You have to manage how much capital is required to ride that curve. You have to do it somewhat capital efficiently. You can’t raise $100 million and have a $100 million exit. That is not going to give you
Sramana Mitra: How do you parse unicorn mania? As a pre-seed investor, you could get buried under later-stage liquidation preferences. Even with your special investment vehicle, you could get buried under later-stage liquidation preferences. How do you protect yourself? Jonathan Lewy: We know the risk. We believe in the relationship we’ve built with the founders.
Eric Benhamou: A third trend is the fact that we are now moving, very fast, to the world of mobile commerce where many transactions are being carried out. Apple Pay is going to change the game. Nevertheless, you still have other opportunities for cybercrime. The point is mobile commerce continues to have a very steep
Sramana Mitra: Let me try to parse what you are saying. In some cases, you go after Latin American companies where you can add value by introducing them into your Silicon Valley network. That is one of your value propositions to Latin American companies in the pre-seed stage. That’s one sector. You just provided an
Sramana Mitra: One other area along the lines of what you’re talking about that we are seeing is the notion of connectors. There are so many modular technologies in use right now. Enterprises are using so many different tools and so many cloud services. Connecting all these things together is a nightmare. It seems like
Sramana Mitra: Can you elaborate on what kinds of businesses you are investing in? Are these B2B or B2C? Jonathan Lewy: We are agnostic. Initially, we invested in companies that had a global focus where we could help them enter the Latin American market. That was back in 2013. It was a way for us