Invest Like The Best
Episode 55 Tech Investing Outside of Silicon Valley
Invest Like The Best

Episode 55: Tech Investing Outside of Silicon Valley

Tech Investing Outside of Silicon Valley

David runs Box Group, a seed-stage VC firm. We cover the tech accelerator model, how things have changed for tech startups over the last 20 years, and the biggest mistakes David sees startups make.

[00:02:16] – (First question) – Looking at David’s motivation and role in building up the venture capital tech investment scene in New York 

[00:06:14] – What David did to further the mission of fostering tech startups in New York, namely his work with TechStars 

[00:10:11] – What is Y Combinator and how does that differ from TechStars

[00:13:02] – What is the procedure for getting into a startup incubator

[00:17:08] – Most memorable applications

[00:19:12] – What is the boot camp/incubator experience like

[00:20:34] – What should future incubators be focused on to help develop the right ideas 

[00:23:46] – What aspects of the business should a startup be focused on in the beginning

[00:26:46] – What got David interested in investing

[00:28:47] – The challenges of launching new tech today and the colonization of identity

[00:32:04] – Exploring David’s investing strategy

[00:35:45] – Finding consumer facing companies that can scale and provide a return for venture capitalists

[00:38:03] – The problem of scaling up for startups

[00:39:20] – What business models does David prefer when making venture investments

[00:40:53] – What’s important to look at when investing in other sectors, starting with Fintech

[00:44:41] – Where does David think we are in the venture capital cycle

[00:49:37] – How much does the exit strategy play into the initial seed investment

[00:50:18] – David’s thinking on the portfolio of companies when picking an investment

[00:52:48] – David’s biggest sin of omission

[00:53:56] – Common personality traits among potential founders 

[00:55:24] – Is storytelling relevant for startups focused on the enterprise side of the business

[00:56:07] – David’s story to convince founders to work with him 

[00:57:51] – Biggest mistakes that David has seen

[01:01:47] – What does it mean for our health that our time has become completely consumed by technology

[01:03:58] – What trend is David most excited about

[01:06:44] – Kindest thing anyone has done for David

Tech Investing Outside of Silicon Valley

Intro

Patrick
My guest this week is David Tisch, who was instrumental in building and fostering venture capital investing in New York City. If you liked my conversation with Jerry Neumann, who incidentally introduce me to David, you're going to love this one. David was a co-founder at TechStars, New York's answer to Silicon Valley's famous tech incubator, Y Combinator. He now runs the Box Group, a prominent seed stage venture capital firm which has looked at thousands of startups and invested in more than 200. We explore tech investing outside of Silicon Valley, the tech accelerator model, the evolution of early stage investing, and why the best companies may start coming out of non-traditional venture hubs. David does a great job of explaining how things have changed for technology startups, and why certain strategies, especially those for acquiring customers, won't work nearly as well in the future. I learned a lot during this hour, and I think you will too. Please enjoy my conversation with David Tisch.

The New York Venture Scene

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