E79: Mike Maples on How to Return 100X+ on Seed Investments

Mike Maples, Founding Partner at Floodgate, sits down with David Weisburd to discuss Mike’s new book “Pattern Breakers: Why Some Start-Ups Change the Future”. This is a masterclass on early-stage venture investing. Mike shares his views on identifying ideas and founders that led to his early investments in Lyft, Twitter, and Okta. They also cover how Mike thinks about fundraising from LPs, his learnings from legendary LP David Swensen, and the power and importance of pursuing non-consensus ideas. (0:00) Introduction and the comparison trap in startups (0:16) Investing in the power of an idea and evaluating Twitter (1:22) Mike Maples' new book, Pattern Breakers (2:08) Startup capitalists vs traditional capitalists and rule disruption (4:17) Creating unique value and the evolution of Twitter (9:10) Lessons from investing in startup pivots (15:22) Significance of founder future fit (21:54) Technological inflections and business model differentiation (25:08) The breakthrough sequence and the role of movements (29:31) Founder motivations and building LP relationships (35:09) Balancing missionary zeal with LP buy-in and VC strategies (38:25) Valuing unique advantages and Peter Thiel's concept of mimesis (40:24) Being nonconsensus in venture capital (42:22) Evaluating startup ideas and David Swenson's influence (45:25) Benefits of venture capital partnerships (47:14) Maintaining a focused venture fund (49:06) Knowing your circle of competence in venture capital (51:20) The role of access and promoting Pattern Breakers