Rick Heitzmann – New York Venture Investing at FirstMark Capital (EP.350)
Nov 13, 2023
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Rick Heitzmann, Founder and Managing Partner of FirstMark Capital, shares insights on the New York tech scene, value-added guilds, investment theses, and the venture environment. He discusses the transition from distressed investing to growth investing and the importance of aligning the investor's thesis with the entrepreneur's. Navigating changing market conditions, including path to profitability and capital efficiency, is also explored.
Digital health is transforming the industry by improving triaging and connecting patients with the right providers.
Marketplaces are evolving and creating value from underutilized assets, expanding the scope beyond traditional marketplaces.
Gaming sector's success lies in creating social experiences and communities, with opportunities for innovation in augmented reality and virtual reality experiences.
Deep dives
Digital Health: Tackling the Challenges in Healthcare
Digital health is gaining momentum as a solution to the lack of providers and the need for better access to healthcare. The use of technology to improve triaging and connect patients with the right providers is becoming crucial. Additionally, consumers are becoming more knowledgeable and demanding better information and personalized care. The shift towards value-based care and the need to improve the ROI of healthcare expenditures are driving the transformation of the industry. Companies like Roman Health and GLP-1 are addressing these challenges with innovative solutions.
Marketplaces: Capitalizing on the Peer-to-Peer Sharing Economy
Marketplaces continue to be an area of focus, with platforms like Pickle.com facilitating peer-to-peer sharing of apparel. The concept of leveraging unused inventory, whether it's space in a closet or a late booking for a vacation rental, has proven successful. The idea of creating value from underutilized assets and enabling efficient transactions resonates with consumers. As marketplaces evolve, opportunities arise in various industries, fostering new forms of sharing economy and expanding the scope beyond traditional marketplaces.
Gaming: Exploring the Future of Interactive Entertainment
Gaming remains a rapidly growing and ever-changing sector within the media industry. The focus on creating social experiences and fostering communities has been a key driver of success. While infrastructure-related companies such as Discord and Unity continue to provide essential tools and services, there is room for innovation in the gaming space. However, caution is required as certain segments of the market might be caught in the pursuit of whiz-bang features rather than emphasizing social interaction and capital efficiency. Opportunities lie in uncovering new platforms and uncovering the potential for augmented reality and virtual reality experiences.
Building a Thesis and Non-Consensus Investing
Investing in companies with non-consensus ideas and executing on those ideas can lead to power law outcomes. By developing a thesis, finding entrepreneurs aligned with that thesis, and helping them execute, investors can create successful companies. The key is to focus on being right on the thesis, adapt when necessary, and prioritize execution.
Creating Communities and Leveraging Networks
First Mark Capital has built guilds and communities based on different problem areas and functions. These communities provide a platform for knowledge sharing, peer-to-peer interaction, and support. By curating and personalizing these communities, First Mark Capital helps its portfolio companies tap into specialized knowledge, access talent, and facilitate networking and connections. The goal is to have members pay it forward and foster a sense of community and collective success.
Rick Heitzmann is the founder and Managing Partner of FirstMark Capital, a network-driven seed and series A venture capital firm managing $3.5 billion that backs entrepreneurs in high-growth consumer and enterprise technology sectors focused in New York City. some of FirstMark’s past wins include Pinterest, DraftKings, Shopify, Upwork, StubHub, and Airbnb, and Rick has been named to the Forbes’ Midas List as one of the world’s top venture capitalists for the last four years in a row. Rick is a one-man treasure trove of venture insights. Our conversation includes his background across distressed investing, operations, and growth capital, the New York tech scene, creation of value-added guilds of hundreds of thousands of people, and investment theses across digital health, gaming, and the venture environment. And as any great New Yorker would be, Rick is a tried and true Yankees fan – what more can you ask for? Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership
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