The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch

20VC: Steve Jurvetson on 20 Years of Friendship with Elon Musk, How To Analyse Market Timing, Why Venture Does Not Scale & Why He Has Never Sold A Share in Any Company He Holds

Aug 3, 2020

Steve Jurvetson, co-founder of Future Ventures and a former partner at Draper Fisher Jurvetson, shares his journey in Silicon Valley and insights on market timing. He discusses his unique investment philosophy, emphasizing long-term visions rather than immediate profits. Jurvetson delves into the challenge of assessing deep tech projects, relationship dynamics in venture capital, and why he's never sold a share in his investments. His reflections on wealth redefine the purpose of investing, prioritizing innovation and societal impact over personal gain.

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ANECDOTE

Dot-Com Crash Experience

Steve Jurvetson lost 90% of his net worth in the dot-com crash but didn't sell any shares.
This experience shaped his long-term investment philosophy and commitment to holding investments.

INSIGHT

Recessions Breed Innovation

Recessions are the best time to start businesses due to scarce capital and customer focus.
This encourages iteration and a healthier startup environment, unlike boom times.

ADVICE

Assessing Founder Vision

To assess founder ambition, ask what their company will look like in 20 years.
This reveals long-term vision and differentiates missionaries from mercenaries.

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Steve Jurvetson is the Co-Founder @ Future Ventures who announced their debut and flagship $200M Fund in 2019. Steve's incredible portfolio includes the likes of SpaceX, Tesla, Planet, Memphis Meats, Hotmail, and the deep learning companies Mythic and Nervana. Steve also sits on the board of both SpaceX and Tesla. Prior to founding Future, Steve was the co-founder of renowned valley firm Draper Fisher Jurvetson where he led investments in 5 companies that went public in successful IPOs and several others that became billion-dollar acquisitions.

In Today’s Episode You Will Learn:

1.) How Steve made his way into the world of startups and Silicon Valley and how that led to his creation of “The Lean Startup Movement”?

2.) How does Steve think about and assess market timing? How does Steve assess technical risk? Given the long term horizons of such deep tech projects, does Steve think we need to change the 10 + 2-year fund life structure? How would Steve like to see funds structured?

3.) Given the sheer size of outcomes if these plays work, how does Steve assess his own price sensitivity? How does Steve approach the challenge there is a lack of downstream investors for such deep tech projects? How does Steve try and catch an industry on the cusp of a transition?

4.) How does Steve assess his own relationship to money? How has it changed over the years? Why does Steve fundamentally believe that venture partnerships do not scale? Where do venture partnerships breakdown? How can one introduce cognitive diversity into a firm?

5.) Having worked with Elon Musk across both SpaceX and Tesla, what does Steve believe makes Elon one of the most gifted entrepreneurs of our time? What is Steve's most memorable moment from his many years of friendship with Elon? What have been his biggest takeaways from SpaceX and Tesla?

Items Mentioned In Today’s Show:

Steve’s Fave Book: Out Of Control: The New Biology of Machines, Social Systems, and the Economic World

Steve's Most Recent Investment: Prellis Biologic

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