Consumer VC: Venture Capital I B2C Startups I Commerce | Early-Stage Investing I Brands Carter Reum (M13) - Why LA is the Place to Build a Consumer Company, His Approach to Fund Differentiation, and Starting a Venture Capital Fund with you Brother
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Our guest today is Carter Reum, Co-Founder of M13. M13 is one of the largest LA-started venture capital fund. Some of their investments include Lyft, Tonal, Classpass, Daily Harvest. Previously Carter founded VeeV, the alcohol grain spirit brand. This was a fun conversation where we discuss how to build a modern venture capital consumer-focused fund, technology thesis, and evolution from fund 1 to 3.
Some of the questions I ask Carter
- What was your attraction to venture capital?
- How did M13 come together?
- Build a platform - what does that look like?
- How then do you think about distribution
- What's the opportunity you are seeing in consumer technology?How has your thesis evolved from fund 1 to fund 3?Why have you shifted your focus away from digitally native brands?
- I've talked with investors who don't want to have a significant increase in the AUM of their fund and specialize. You have seemed to take the opposite approach as each new fund has grown quite significantly. What is the strategy?
- Why are you bullish on LA?What's most misunderstood about LA as a startup hub?
- What were your learnings through the pandemic?
- Great seed investors, but nowDid this change your approach to specific sectors?
- Today there is so much money in venture capital and the private markets. It's extremely competitive for deals. How do you think about price discipline, speed and diligence in today's market?ConcentrationDiligence cycle
- How do you think about fund differentiation?Propulsion Firm - how can I help
- How do the various parts to your fund interact with one another?Since you also launch companies from your studio, when do you think about building vs. buying a piece of another company?
- What's one thing you would change about venture capital?
- What's one book that inspired you personally and one book that inspired you professionally?What was your biggest learning during COVID?
- What's one piece of advice that you have for founders?Assessing and evolving growth vs. fix mindsetNeeds to be a story teller
- Is it tough working with your brother Courtney?
- What's the best piece of advice that you've received?