The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch 20VC: Why Large Seed Rounds Increase the Chances of Success | When to Sell in Venture | Why Multi-Stage Firms Do Not Do The Work | Is Europe Totally F****** and Why AI Means London Can Compete with the US with Hussein Kanji
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Jan 20, 2025 Hussein Kanji, Founder and Managing Partner of Hoxton Ventures, shares insights from his experience in venture capital. He discusses how large seed rounds can boost startup success rates and critiques the UK’s small funding challenges. Hussein reveals lessons learned from missing out on significant gains with Darktrace and how Deliveroo shaped his investment strategies. He examines the broken incentive structures in VC, the importance of hiring diversity, and speculates on the competitive landscape between Europe and the U.S. in tech funding.
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Fundraising Advice
- Raise funds for a set time, not a target amount.
- Deploy capital quickly, demonstrate success, then raise more.
Momentum Investing vs. Long-Term Value Creation
- Most VCs prioritize short-term markups over long-term company building.
- This focus on momentum investing neglects the power law nature of venture returns.
Deliveroo Investment
- Hussein Kanji invested in Deliveroo early, initially trying to dissuade Will Shu from pursuing it.
- Despite skepticism, he recognized Will's operational focus and growth, leading to a successful 34x return.