Introduction

Follow me @samirkaji for my thoughts on the venture market, with a focus on the continued evolution of the VC landscape.

We have a conversation with Mitchell Green, Founder and Managing Partner at Lead Edge Capital. 

With offices in New York and Santa Barbara, the firm has over $5B in Assets under management and specializes in helping growth-stage companies scale.

The firm has an interesting model that combines elements of PE, growth, and an active network of over 700 LPs to build a very powerful moat.

I was really interested in several business components, especially the LP base's strategic nature and the programmatic way they evaluate companies. 

A word from our sponsor:

Invest in innovation. Allocate allows investors to access top-tier private funds and co-investment opportunities within the technology sector.

Despite the enormous growth of the private markets and the rapid increase of retail demand for private alternatives, investing in the highest quality private assets within the innovation sector still remains limited to institutions and ultra-connected high net worth individuals.

With Allocate, wealth advisors, banks, family offices, and other qualified investors can have a streamlined way to responsibly invest with confidence.

Go to allocate.co to find out more and please sign up to the waitlist to learn more and get early access to the platform.

About Mitchell Green:Mitchell Green is the Founder and Managing Partner at Lead Edge Capital, a $5B growth equity firm investing in software, internet, and tech-enabled services businesses globally. Mitchell oversees the fund’s global activities and has led several of the fund's largest investments, including Alibaba Group, Asana, Bumble, FIGS, Grafana, SignalSciences, Spotify, Toast, Uber, and Wise. His career began with roles on the investment teams at Bessemer Venture Partners and Eastern Advisors. Mitchell is a former nationally ranked alpine ski racer and currently serves on the boards of the U.S. Ski & Snowboard Foundation and the Laguna Blanca School in Santa Barbara, CA.Mitchell holds a B.A. in Economics from Williams College and an M.B.A. in Marketing from the Wharton School at the University of Pennsylvania.

In this episode, we discuss:

(01:38) Shares the origin story of Lead Edge Capital, reflecting on the early experiences before 2009, and the influence of Bessemer's deal-sourcing approach of cold calling and direct outreach.

(09:57) The value of being his own boss and learning from failures

(12:35) Building a team for outbound cold calling to find unique investment opportunities.

(15:27) Leveraging LPs in the due diligence process for valuable insights and validation of potential investments

(17:21) Creating a community among LPs where engagement and assistance are core expectations

(20:55) The resilience and opportunistic nature of high-net-worth individuals during market downturns

(21:59) The "moneyball" approach to investment criteria, prioritizing revenue, growth, gross margins, and capital efficiency

(26:00) A success story of investing in a rapidly growing, COVID-enabled electronic signatures company

(30:32) Many companies raising venture capital should not exist

(36:09) The need for persistence to get into the best companies

(38:57) Trusting your instincts and the strategic advantage of being contrarian in investment

I’d love to know what you took away from this conversation with Mitchell. Follow me @SamirKaji and give me your insights and questions with the hashtag #ventureunlocked. If you’d like to be considered as a guest or have someone you’d like to hear from (GP or LP), drop me a direct message on Twitter.

Podcast Production support provided by Agent Bee

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit ventureunlocked.substack.com