Sramana Mitra: The question that I’m constantly intrigued by as I talk to many investors is that how can so many investors find unicorns. It’s just not mathematically viable if you’re obsessed with just investing in companies that have the potential of being unicorns. There aren’t that many of those. Alan Chiu: That’s very true.
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: 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
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