🎉 RSVP NOW FOR SF AND LA TECH WEEK EVENTS!

• On Oct 11, we're hosting an AMA panel + mixer with early stage VCs along with our friends at Brex and Notion for SF Tech Week.

• On Oct 15, we're hosting an AMA panel + mixer with post-exit founders along with Techstars for LA Tech Week.

• We'll be announcing the rest of the panel soon, but you won't want to miss it!

⭐ Highlights from Brent’s AMA
(edited for clarity)

What is the most important trait in early stage founders?

A sense of urgency is crucial. In our portfolio, successful founders are those who quickly respond to feedback and implement changes. Instead of waiting a week, they act within hours. This urgency is a guiding principle in my own career and how I lead my team.

How has the fundraising landscape changed in the last few years?

The fundraising landscape has drastically shifted. Time between rounds is longer, and fewer startups are graduating from Seed to Series A. VC fundraising has declined, making it harder for startups to secure funds. Larger funds are now preempting rounds, investing before companies officially raise capital. This trend requires more proactive support for portfolio companies.

What are some red flags you find in founders?

Red flags for raising the next round include a current investor opting out, which signals potential issues. We also look for markets with a total addressable market over $10 billion, as smaller markets may not support significant outcomes. If a founder never includes their team in discussions, it may indicate concerns about team strength.

What are some of the future trends for the commerce sector?

I've recently focused on the advertising and marketing space. With shifts in how people search—moving from Google to tools like ChatGPT and Claude—advertising must adapt. As search evolves from blue links to direct answers, the future of SEO and SEM is uncertain. I'm exploring new ad and marketing technologies to help brands connect with consumers in this changing landscape.

What should founders look for when hiring the first few employees?

Grit and hunger always surpass raw intelligence. The teams we've backed are incredibly driven and resilient. They bounce back quickly, act with urgency, and give their all. This quality often outweighs more experience or intelligence from prestigious backgrounds. In the early days, I prioritize grit and hunger above all else.

How should founders navigate valuation talks?

Talk to founder peers, especially those who’ve recently raised capital, to understand current terms. Also, review market comps through sources like PitchBook and Crunchbase. For early-stage companies, valuation often hinges on dilution rather than revenue multiples. Typical seed-stage dilution ranges from 20% to 30%. For a $2 million raise, expect a valuation that dilutes you by this percentage.

For the full AMA, click here.

📅 Upcoming AMAs

• Sep 18 at 9am PST: Bodin Scepanovic, Partner at SparkLabs Saudi Arabia.

  • SparkLabs operates the AIM-X accelerator, a program focused on supporting AI startups in Saudi Arabia as part of the country's broader Artificial Intelligence Mission (AI.M) to enhance its global leadership in AI.

📺 Past AMAs

Missed any of our previous AMAs? No worries! You can catch up on all the guests here.

• Will Drewery, Founder and CEO at Diagon (AI-powered procurement platform)

• Gaurav Seth, Founder and CEO at PierSight Space (maritime surveillance using satellites)

• Tejes Srivalsan, Founder and CEO at Poppin (event-based social media)

• Christie Marchese, Founder and CEO at Kinema (film distribution platform)

• Michael Kapps, Founder and CEO at Sanii (longevity and lifestyle for the elderly)

• Ahmed Mirza, Investor at Techstars Los Angeles (leading startup accelerator)

• Clara Hong, Founder and CEO at Smore (B2B form building platform)

• Luiza Justus, Founder and CCO at Supersocial (gaming for the metaverse)

• Mark Linao, General Partner at Progression Fund (early stage consumer VC)

• David Yi, General Partner at Ethos Fund (early stage VC in Vietnam and the US)

• Fay Wells, Angel Investor and VC in Residence at Techstars

• Christian Dorffer, General Partner at Defiance Capital (early stage VC fund in AI)

📬 Contact Us

Have suggestions for future guests, feedback on the sessions, or just want to say hi? We’d love to hear from you! Reply directly to this email or send us a note here.

You can also join our Discord server here.