Hunter Walk discusses the evolution of his venture capital firm, Homebrew, and their contrarian decision to become a self-funded fund in a world of increasingly large megafunds.
Homebrew focuses on working with early-stage companies and keeping things simple, without the constraints of a traditional fund structure. He explains the differences between their fund structure and traditional funds, highlighting their commitment to aligning incentives with founders. He also shares some of their successful investments, such as Chime, Plaid, Gusto, and Cruise, and emphasizes the importance of being a true partner to entrepreneurs.
Hunter also talks about the creation of Screendoor, a fund of funds that backs emerging managers, and explains the purpose of ScreenDoor and how it provides access to venture capital for investors who can't buy it in the ' stock market’ of venture capital returns. He emphasizes the importance of building a successful firm and the need for differentiated strategies in the venture industry.
Walk also offers advice for emerging managers, including being self-aware, honest, and confident, and not changing too much too quickly.
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Check out:
Homebrew: https://homebrew.co/
Screendoor: https://www.screendoor.co/
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TIMESTAMPS:
(00:00) Introduction & Homebrew's Self-Funded Fund
(01:55) Homebrew's Origins & The Shift to Self-Funding
(07:25) Addressing Common Misconceptions & The Impact of Fund Size
(12:00) Traditional Fund Structure vs. Homebrew's Model
(21:00) The Need for a Different Playbook & The Power of Concentration
(25:00) Homebrew's Investment History
(33:00) Introducing Screendoor & Its Mission
(41:00) Screendoor's Approach & Investment Criteria
(51:00) The Evolution of Screendoor's Screening Process & Advice for Emerging Managers
(57:00) Fundraising Strategies for Emerging Managers
(1:04:00) Final Advice & Takeaways
