Chad Byers, co-founder of Susa Ventures, shares insights on growing up in Silicon Valley, founding Susa with his partners, strategic fund planning, and building a successful seed firm. The episode is a playbook on seed investing, offering valuable tips and experiences for aspiring investors.
SUSA Ventures strategically plans fund growth by scaling check sizes uniformly over time.
Speed in decision-making, brand building, and focusing on founder experiences are crucial for winning deals.
Leveraging portfolio founders as brand ambassadors enhances reputation and attracts new investment opportunities.
SUSA Ventures remains optimistic about the market's growth potential and focuses on increased entrepreneurial activity.
Prioritizing a positive, supportive founder experience ('Suit-to-Experience') is essential for successful collaborations and portfolio development.
Deep dives
Strategic Planning for Fund Growth
The podcast delves into SUSA Ventures' strategic planning for fund growth. It outlines how the firm's approach involves scaling check sizes uniformly as they progress through their funds. They initially aimed for $25 million with check sizes of $250k, ensuring a methodical path of growth with planned fund sizes of $50 million, $75 million, and beyond.
Key Factors in Winning Deals
In discussing market competitiveness, the podcast emphasizes the importance of three key factors in winning deals. Speed in decision-making, building a strong brand through founder references and positive interactions, and focusing on the emotional experience of entrepreneurs play vital roles in securing investments.
The Power of Portfolio Founders
Notation highlights the significance of leveraging portfolio founders as brand ambassadors to attract new investment opportunities. By encouraging blind references and fostering strong connections between current and potential portfolio companies, the firm builds a strong brand reputation that resonates within the entrepreneurial community.
Optimistic View of a Crowded Market
Despite the competitive landscape in venture capital, the podcast champions an optimistic perspective on the market's growth and potential. Viewing the influx of capital and opportunities as a positive sign, SUSA Ventures focuses on the increased entrepreneurial activity resulting from technology integration and the enduring impact of successful investments in the economy.
Championing the 'Suit-to-Experience'
SUSA Ventures prioritizes the 'Suit-to-Experience,' highlighting the importance of creating a positive, supportive, and efficient interaction for entrepreneurs. By ensuring founders feel valued and respected throughout all touchpoints, the firm aims to enhance their overall experience and increase the likelihood of successful collaborations.
Evolution from Seed to Opportunity Funds
The podcast outlines SUSA Ventures' growth trajectory from seed funds to opportunity funds, aligning with their strategic vision. While maintaining a focus on early-stage investments, the firm plans to introduce dedicated vehicles, like the recent Opportunity Fund, to support the scaling and success of their portfolio companies beyond the seed stage.
Core Principles in Portfolio Development
SUSA Ventures emphasizes maintaining discipline and efficiency in portfolio development, adhering to planned fund sizes and check distributions. By balancing fund growth with strategic opportunities like Opportunity Funds, the firm aims to continuously support and nurture its portfolio companies for long-term success.
Navigating a Competitive Market Landscape
In a crowded market landscape, the podcast sheds light on SUSA Ventures' strategies to navigate and excel in competitive environments. Balancing speed, brand reputation, and founder experiences, the firm remains committed to fostering strong connections, making swift decisions, and prioritizing entrepreneurial success in every investment interaction.
Embracing Optimism Amid Market Changes
Despite market fluctuations and heightened competition, SUSA Ventures maintains an optimistic outlook on the future of venture capital. Viewing the dynamic market as an opportunity for continued growth and innovation, the firm remains dedicated to supporting entrepreneurship and driving progress through strategic investments and enduring partnerships.
Chad Byers is a co-founder and partner at Susa Ventures, a seed-stage venture fund based in SF that has backed companies like Robinhood, Flexport, and Andela. Chad discusses growing up in Silicon Valley, his path to venture, the unusual founding story of Susa with his partners, and how they've strategically planned their funds over time. Chad is one of the smartest young seed investors in SF, and this episode was essentially a playbook on how to build a seed firm.
A huge thank you to Carta, the title sponsor for this season of Origins. It's a core product that we use daily --> Get 10% off when you use the Notation Signup Link (Terms and conditions apply). This season is also sponsored by SVB and Cooley, two of the earliest and most trusted supporters of our work at Notation.
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