Rob Coneybeer, co-founder of Shasta Ventures, shares insights on venture capital, investments in Nest and Dollar Shave Club, and interest in New Zealand. He discusses spotting the next big thing, creating links between NZ and the US, and his journey into venture capital.
Investing in emerging industries can yield high returns, like Rob's success with Kairos.
Diversifying investments and aligning interests are essential in successful venture capital strategies.
Deep dives
The Journey into Venture Capital
Rob Connebier started as an aerospace engineer and transitioned into venture capital in Silicon Valley in the mid-90s, focusing on investing in communications and networking companies. Despite initial uncertainties, he delved into this tech sector, learning intensively to become an expert. This move proved fruitful as he invested in companies like Kairos, which was acquired for over $3 billion, showcasing the importance of seizing opportunities in emerging industries.
Venture Capital Fund Dynamics
Connebier discusses the power law in venture capital, highlighting that a few standout companies in a fund greatly impact its returns. The 2 and 20 model is explained, emphasizing how fees fund operational costs, while carried interest offers significant returns when investments succeed. Diversifying investments across multiple companies hedges risks and aligns interests between fund managers and limited partners.
Investing in Transformative Companies
Connebier's investments, such as Nest, Dollar Shave Club, and Anaplan, illustrate successful forays into consumer and business-facing ventures. Nest's innovative AI integration in home devices reflected a shift towards user-centric products. Anaplan's reinvention of spreadsheet use in large-scale business operations marked a significant venture success, highlighting the impact of user experience in B2B sectors.
Fostering Kiwi-US Linkages
Connebier's exploration of New Zealand's startup ecosystem led him to bridge connections between Kiwi entrepreneurs and the US market. Through road trips and immersive experiences, he aims to facilitate interactions that attract talent to New Zealand. Recognizing the cultural affinity and trusted reputation of Kiwis, Connebier advocates for Kiwi entrepreneurs to confidently assert their global competitiveness, aiding in international business endeavors.
Rob Coneybeer co-founded Shasta Ventures in Silicon Valley in 2004. They invested in companies like Nest and Dollar Shave Club, have over $1B of funds under management and, unusually for US VC, have a deep and active interest in Aotearoa. We cover his journey into venture capital, how he got connected to NZ, how he’s creating more links between NZ and the US and what it takes to spot the next big thing.