20VC: Why VCs Should Care More About Cost of Capital and Less About Ownership, Investing Lessons from working with Peter Thiel at Founders Fund, Why Liquidity Aligns Incentives Between Founders and Investors & Why It Is The Last Double That Matters in Ven

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch

The Twenty Minute VC

Finance, Venturecapital, Tech News, News, Siliconvalley, Technology, Investing, Startups, Business

4.4 • 637 Ratings

🗓️ 4 February 2021

⏱️ 40 minutes

🔗️ Recording | iTunes | RSS

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Summary

Justin Fishner-Wolfson is founder and the managing partner of 137 Ventures, a growth-stage venture firm that provides customized liquidity solutions to founders, investors, and early employees of high-growth private technology companies. Their portfolio includes the likes of SpaceX, Wish, Anduril, Flexport, and Rigup to name a few. Previously, Justin worked on the investment team at Founders Fund and before that served in the US Department of State under Alan Larson, Undersecretary for Economic, Business and Agricultural Affairs.

In Today’s Episode You Will Learn:

1.) How Justin made his way into the world of venture with Founders Fund and how that led to his founding 137 Ventures? What specific lessons did he learn from Peter Thiel that he has applied to his investing mindset?

2.) What does Justin mean when he says, "it is the last double that matters"? Why does Justin believe that liquidity aligns incentives between VCs and founders? When is the right timing for this liquidity and are there limits to the sizes of secondaries founders and teams should take?

3.) How does Justin think about his own price sensitivity today? Why does Justin believe that the conventional VC views on ownership are outdated and no longer as relevant to this class of company? How does Justin think about diversification among the portfolio today? What is the right level? What is too diversified? What is too concentrated?

4.) Why does Justin believe that standard thoughts around CAC/LTV are wrong? How have they changed over time? How should founders think about this and present these metrics to investors? Given these metrics, how does Justin feel about the revenue multiples we are seeing today both in private and public markets?

Item’s Mentioned In Today’s Episode

Justin’s Favourite Book: The Hitchhiker's Guide to the Galaxy

Justin’s Most Recent Investment: Lattice

As always you can follow Harry and The Twenty Minute VC on Twitter here!

Likewise, you can follow Harry on Instagram here for mojito madness and all things 20VC.

Transcript

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0:00.0	Welcome back. You are listening to the 20-minute VC with me, Harry Stebbings, and we have a very
0:03.7	unique guest on the show today with a unique model of venture investing in many respects. And so with
0:08.2	that, I'm thrilled to welcome Justin Fishnell-Wolfson, founder and managing partner of 137
0:12.9	ventures, a growth-stage venture firm that provides customized liquidity solutions to founders,
0:18.3	investors and early employees of high-growth private technology companies.
0:22.2	Their portfolio includes the likes of SpaceX, Wish, and Jeryl, Flexport and Rig Up, to name a few.
0:28.0	Previously, Justin worked on the investment team at Founders Fund and before that served in the
0:32.0	US Department of State under Alan Larson, under Secretary for Economic, Business and Cultural Affairs.
0:37.3	I'd also want to say huge thank you to Christian at 137 for some fantastic question suggestions today.
0:42.2	I really do so appreciate that.
0:44.0	But before we dive into the show state, did you know that more than 80% of US public stock is owned by just 10% of Americans?
0:50.4	This divide is even greater in the private markets.
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0:55.2	employees as it is to issue payroll and for employees as easy to accept it too. More than 16,000
1:01.2	companies issue equity to their employees through Carter, whether you're just getting started
1:05.4	or getting ready to go public, the team at Carter can help. Check them out at carter.com.
1:10.2	And then another incredible
1:11.2	product you have to introduce is Secureframe. Secureframe helps companies get enterprise ready
1:16.2	by streamlining SOC2 and ISO-271 compliance. Secureframe allows companies to get compliant within
1:22.9	weeks rather than the painful months that is today. Join companies like Stream, Hussura, Benapos,
1:28.8	and unlock more sales with Secureframe and 20 VC listeners get 10% off at secureframe.com
1:34.5	forward slash 20VC. And finally, I've always been a big history fan and so I want to talk about
	...

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