This week, we’re re-releasing Erik Torenberg’s interview with Alexis Ohanian. Alexis discusses his journey from co-founding Reddit to creating the venture firm Seven Seven Six, detailing its unique approach of using software to enhance venture capital operations and founder support, transparency, and accountability
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LINKS:
Seven Seven Six: https://sevensevensix.com/
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X / TWITTER:
@alexisohanian
@sevensevensix
@eriktorenberg
@TurpentineVC
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HIGHLIGHTS FROM THE EPISODE:
- Alexis Ohanian co-founded Reddit in 2005, helped lead its turnaround in 2014, and started Seven Seven Six venture firm in 2020 after splitting from Initialized Capital.
- Seven Seven Six operates as "a tech company that deploys venture capital," applying tech company principles to venture investing.
- Traditional venture capital lacks internal metrics and accountability systems that are standard in other industries.
- Cerebro is Seven Seven Six's software platform that tracks all firm activities and provides founders with direct access to the team's network.
- Seven Seven Six displays real-time metrics publicly on their website, including tasks completed, pitch meetings organized, and response times to founders.
- Partners' response times to founders are tracked and made visible to create accountability.
- The "Amplify" feature lets founders draft social content for Seven Seven Six's high-follower channels to gain distribution.
- Every employee at Seven Seven Six receives carry to align incentives across the organization.
- Seven Seven Six focuses on pre-seed to Series A investments with a fund size around $400M.
- The firm has never lost a term sheet despite not always offering the highest valuation.
- Seven Seven Six is exploring "Agora IRL" - reimagined physical spaces for their community as an alternative to traditional co-working models.
- Alexis believes many "zombie VC funds" will disappear as the industry evolves in a higher interest rate environment.
- Seven Seven Six registered as an investment advisor for greater operational rigor.
- Traditional accelerator models may be less relevant today as founders have more resources available than in the past.
- Alexis questions the viability of extremely large early-stage funds in the current economic environment.
