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

20VC: 19 Company Portfolio: 1 Decacorn, 7 Unicorns, 4 Acquisitions; One of the Best Seed Investors of All Time on How to Pick Generational Defining Founders, Why Nothing but the Founder Matters & Why the Best Investors are Never Happy w/ Gili Raanan

Mar 18, 2024

In this engaging discussion, Gili Raanan, founder of Cyberstarts and a distinguished seed investor, shares insights from his impressive portfolio, including a decacorn and multiple unicorns. He reveals the critical traits he looks for in exceptional founders, arguing that the founder's passion trumps market conditions. Gili also discusses the importance of personal connections in venture capital, the role of brand reputation, and how a bit of strategic 'laziness' can enhance efficiency for startups. His journey from Sequoia Capital to seed investing is both inspiring and illuminating.

57:49

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Episode guests

Gili Raanan

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Highlights

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Podcast summary created with Snipd AI

Quick takeaways

Founder passion outweighs market and product in investment decisions.

Best seed investors prioritize relationships over investment theses.

Success in venture capital hinges on backing exceptional founders, not market expertise.

Deep dives

Focus on Demand Generation Over Product Marketing

Gili Renan shifted his belief from product marketing to demand generation in the early stage as he found that focusing on creating demand rather than purely marketing the product leads to more opportunities and a robust pipeline for success.

The Power of Brand in the Venture Business

01:43

Understanding Uniqueness and Overcoming Difficulty

01:29

Empowering Customers through Strategic Conversations

02:01

Focus on Strengths and Delegate Weaknesses

01:07

Intro

3min

Exploring Early Influences and the Evolution into Technology

2min

The Dynamics of Laziness and Efficiency in Venture Capital

2min

Journey into Venture Capital

11min

Navigating Hire and Investment through Personal Experience

15min

Resilience and Strategic Investing

16min

Shifts in Product Marketing and Entrepreneurial Relationships

5min

Navigating Private Market Liquidity and Global Employment Solutions

3min

Gili Raanan is the Founder of Cyberstarts and one of the most successful seed investors ever. In his 19 company portfolio, Gili has invested in a decacorn (Wiz), seven unicorns and had three others acquired. Prior to Cyberstarts, Gili spent over 15 years as a General Partner @ Sequoia Capital investing in some of the world's best cyber security companies.

In Today's Episode with Gili Raanan We Discuss:

1. From Founder to World's Best Seed Investor:

How did Gili make the move into the world of venture with Sequoia?
How did Mike Moritz and Doug Leone recruit him? What was that process like?
What are 1-2 of Gili's biggest takeaways from working with Doug and Mike?

2. How to Find and Pick the Best Founders:

What did Mike Moritz teach Gili about getting to know founders?
Why does Gili look for the pain in the eyes of the founder? What questions does he ask?
What are the most common signals of truly exceptional founders, having backed 7 unicorns?
Why does Gili believe that both market and product is BS? Why are the founders all that matters?
Why does Gili believe that the founder does not have to be a domain expert in a market to create a massive company in that market?

3. What it Takes to be the Best Seed Investor:

Why does Gili believe that the best seed investors do not have theses?
How important does Gili feel the brand of the VC firm is? What were his biggest lessons on brand from spending 15 years as a General Partner @ Sequoia?
Why does Gili believe that the best investors are never happy? When you are happy, you lose.

4. 2021 is Back: Pricing, Uprounds and more

Why does Gili believe that the best companies are always expensive and will always be expensive at every round?
Why does Gili believe that 2021 pricing and funding is back?
Is this a good thing? How does Gili advise founders on how much to raise and what valuation to set with investors?
What does Gili believe are the single biggest sins from the zero interest rate environment?

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

20VC: 19 Company Portfolio: 1 Decacorn, 7 Unicorns, 4 Acquisitions; One of the Best Seed Investors of All Time on How to Pick Generational Defining Founders, Why Nothing but the Founder Matters & Why the Best Investors are Never Happy w/ Gili Raanan

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

Focus on Demand Generation Over Product Marketing

Israeli Tech Ecosystem: Selling Early Misconception

Avoid Signaling Potential and Adapting Check Sizes

Adapting to Seed Investment Dynamics

Importance of Investment in Team and Impact

The Power of Brand in the Venture Business

Understanding Uniqueness and Overcoming Difficulty

Empowering Customers through Strategic Conversations

Focus on Strengths and Delegate Weaknesses

Remember Everything You Learn from Podcasts