Building a Generational Venture Capital Firm with Abheek Anand
Aug 10, 2023
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Legendary partner at Peak XV (formerly Sequoia), Abheek Anand, talks about manufacturing luck, founding a company acquired by Facebook, becoming a great investor at Sequoia, and the future of VC in SEA.
The goal for venture capital firms has shifted from backing companies reaching $100 million in net revenue to now aiming for companies with outcomes of $250-500 million.
The podcast highlights the growing entrepreneurial culture in Southeast Asia, with founders in the region aspiring to build global businesses in sectors like software and fintech.
The partner emphasizes the power of platform shifts and trend changes, particularly the potential of AI as a platform shift that can drive significant innovations in software globally.
Deep dives
The power of compounding effort over time
The podcast episode discusses how the tech market is expanding and how the sizes of outcomes have grown over the years. The partner mentions that in the past, the goal was to back companies that reached $100 million in net revenue, but now it's much larger, around $250-500 million. They discuss the potential impact of artificial intelligence (AI) as a platform shift and how it can reimagine various sectors of software globally. They also highlight the importance of thinking long-term in investing, with a focus on building enduring businesses.
The excitement around Southeast Asia's entrepreneurial ecosystem
The podcast episode explores the growing entrepreneurial culture in Southeast Asia. The partner discusses the ambition of founders in the region and their desire to build global businesses. They highlight the opportunities in the software and fintech sectors and the disparities in services across different markets. The partner emphasizes the importance of understanding market nuances and being a sophisticated local investor. They express excitement about the potential for growth and development in Southeast Asia's startup ecosystem.
The impact of platform shifts and changing trends
The partner discusses the power of platform shifts and trend changes in shaping industries. They mention the potential of AI as the next big inflection point that can reimagine software globally, leading to significant innovations. They emphasize the need to think long-term and play the long game in investing, acknowledging that outcomes may not be immediately known. They highlight the importance of focusing on key spaces and becoming an expert in specific areas as a young investor.
Building a venture franchise in Asia
The podcast episode delves into the partner's perspective on building a venture franchise in Asia. They discuss their approach of being a sophisticated local investor, focusing on diverse markets and backing founders with global ambitions. They highlight the importance of being in the right neighborhood and investing in the right people. The partner reflects on the cultural principles that define their venture firm, including a focus on long-term value creation, a belief in compounding knowledge, and a willingness to try new things.
The role of curiosity and the value of long-term partnerships
The partner emphasizes the value of curiosity in driving success and impact as an investor. They discuss how curiosity enables continuous learning and innovation, promoting an insatiable desire to understand how things work. The partner shares insights about the supportive culture at their venture firm, focusing on long-term partnerships and compounding impact over time. They highlight the importance of developing young venture talent, encouraging them to play to their strengths and become experts in specific areas of interest.
This week we were delighted to be joined the legendary Abheek Anand partner at Peak XV (formerly Sequoia). We dived into how Abheek manufacturers luck, founding a company that was acquired by Facebook and becoming a great investor at Sequoia. We also spent some time talking about the future of VC in SEA.
Peak XV: https://www.peakxv.com/
This episode is supported by our friends at Employment Hero. Make sure you search Global Teams by Employment Hero. You can get your first months management fee free! All you need to do is go onto the employment hero website and click on the “request a demo” button on the website, and mention Sachin & Adam. You can find more at https://employmenthero.com/products/e...
This episode is also sponsored by Recess a great Aussie startup providing furniture for your home and office. They’ve fitted out thousands of Aussies including the offices of Eucalyptus, Lyka and Afterwork. Use the code SACHINANDADAM for 20% off your next order. Check them out: https://recess.com.au/
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