20VC: Capital G's Laela Sturdy on What Stripe, UiPath and Duolingo Taught Me About Company Building and Investing | How to Analyse Valuation, Market Timing, Sizing and Exiting | Life Inside Alphabet's $7BN Growth Fund
Laela Sturdy, Managing Partner at CapitalG, is a powerhouse in the venture capital world with a rich background at Google and YouTube. She shares invaluable lessons learned over a decade of investing, revealing her biggest misses and how companies like Stripe and UiPath shaped her investing perspective. Laela dives into the intricacies of building a unicorn, discussing market timing, sizing, and the risks of a company's 'second act.' Her insights stress the importance of leadership and adaptability in navigating today's dynamic investment landscape.
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insights INSIGHT
Insights vs. Open Mind
Rely on insights, but don't let them solely predict the future.
Combine insights with an open mind for great investments.
question_answer ANECDOTE
Stripe Investment
Laela Sturdy invested in Stripe in 2017, focusing on their SMB to enterprise expansion.
She analyzed their developer-led sales motion and its difference from traditional enterprise sales.
volunteer_activism ADVICE
Underwriting Advice
Underwrite based on a company's current state, not future potential.
Include future expansion in the upside case, but not the base case.
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Laela Sturdy is Managing Partner of CapitalG, Alphabet’s $7 billion independent growth fund, where she has invested in Stripe, Duolingo (DUOL), Gusto, UiPath (PATH), Webflow and Whatnot. Laela joined CapitalG shortly after its inception in 2013 and was promoted to Managing Partner in 2023, making her one of few women to be promoted into the sole leadership role within an established multibillion-dollar venture firm. Before joining CapitalG, Laela served as Managing Director of emerging businesses at Google and held leadership roles on the YouTube and Google Search teams.
In Today's Episode with Laela Sturdy We Discuss:
1. Lessons from 10 Years Investing:
What does Laela know now that she wishes she had known when she entered VC?
What is the biggest miss for Laela? How did it change her mindset and approach?
What are Laela's biggest takeaways from Stripe and UiPath? How did they change what she looks for in companies today?
What is Laela's biggest advice to all new entrants to venture today?
2. How to Build a $100BN Company: Market Timing, Sizing and Staging:
What does Laela mean when she says she will never take a risk on a company being able to complete a "second act"?
How does Laela approach market sizing? How does Laela think about the notion that the best companies will always expand their markets?
Is Laela willing to take market timing risk? What have been her biggest lessons on timing?
Does Laela prefer founders who are new to a market and have optimistic naivety? Or prefer an expert in a market who knows every element of it?
3. The Deal: Pricing, Sizing and Upside:
How does Laela think about price today? When is she willing to pay up vs not?
What price did Laela pay that at the time seemed super high but turned out to be super cheap?
What price did Laela pay that seemed super cheap but turned out to be super high?
What upside is Laela underwriting towards? What does she need to see in base and best case?
4. VC Value Add: Is it all BS:
Does Laela believe that the best founders really need help from their VC?
Who is the best board member Laela works with? Why are they so good?
What are the core areas where the VC and the founder are misaligned?
What would Laela most like to change about the relationship that founders and VCs have?
The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch 