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 Venture
Justin Fishner-Wolfson is founder and the managing partner of 137 Ventures. They are 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 WorkRise (formerly Rigup) to name a few. Previously, Justin worked on the investment team at Founders Fund. Before that he 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 did Justin Fishner-Wolfson make his way into the world of Venture with Founders Fund? And, how did 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 event to occur? Are there any limits to the sizes of secondaries founders and teams should take?
3.) How does Justin think about his own price sensitivity? Why does Justin believe that the conventional VC views on ownership are outdated and no longer as relevant to this class of company?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? Is there such a thing as being too diversified? What is too concentrated?
4.) Why does Justin Fishner-Wolfson 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