This week on Turpentine VC, we're re-releasing one of our most popular episode: Erik Torenberg’s interview with Somesh Dash. Somesh is a General Partner at IVP, shares insights on IVP's unique positioning in the venture capital ecosystem, the importance of team construction, the future of venture capital, and how IVP supports founders through scaling and strategic growth.
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LINKS:
IVP: https://www.ivp.com/
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RECOMMENDED IN THIS EPISODE:
(Morgan Stanley) What to Expect When You're Expecting to Go Public: https://advisor.morganstanley.com/mark.wolkstein/documents/field/m/ma/mark-wolkstein/GoingPublicIPO_Wolkstein.pdf
Geoffrey Moore’s Crossing the Chasm: https://www.amazon.com/Crossing-Chasm-3rd-Disruptive-Mainstream/dp/0062292986
Turpentine VC Episodes mentioned:
With Alfred Lin: https://www.youtube.com/watch?v=jv4cwqO87eI
With Ben Horowitz: https://www.youtube.com/watch?v=PdpcF7LnL6g
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X / TWITTER:
@someshdash
@ivp
@eriktorenberg
@turpentinemedia
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HIGHLIGHTS FROM THE EPISODE:
- IVP is a 45-year-old venture firm focused mainly on Series B and C investments, reviewing 2000 companies annually but investing in only about 15.
- The firm maintains a small, equal partnership model where each General Partner has equal voting power and say in decisions.
- IVP positions itself as "Switzerland" in the venture ecosystem, working collaboratively with all early-stage firms rather than competing with them.
- The firm typically builds relationships with founders/CEOs for around 20 months before making their first investment.
- IVP has kept its fund size consistent at $1.4-1.8 billion for the past decade, viewing fund size as an output rather than an input.
- Their Twitter investment in 2009 during the financial crisis returned their entire fund, demonstrating the power law in growth-stage investing.
- The firm's team construction has evolved from finance backgrounds (70s-80s) to engineering (80s-90s) to now valuing curiosity and passion for technology above specific backgrounds.
- IVP believes venture capital is following private equity's evolution path, about 5-10 years behind.
- The firm predicts AI will create more efficiency in venture capital's core business of investing and deal sourcing.
- Despite the current market conditions, IVP believes the IPO window remains open for the best companies, particularly in sectors like security.
- The firm has recently expanded to Europe with a London office, staffed primarily with transplants from California.
- IVP maintains its focus on helping companies scale rather than expanding into new business lines, guided by their founder's philosophy of "disagreeing without being disagreeable."
