Ep164 – Chris Hitchen (Managing Partner – Possible Ventures) on investing in the possible
May 26, 2022
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Chris Hitchen, Managing Partner of Possible Ventures, shares insights on investing in frontier technology. He discusses his journey from athlete to investor, building conviction in partnerships, and the success story of investing in So Rare. The chapter also emphasizes the importance of authenticity in mission and navigating founder's challenges.
Invest based on potential, not probability to achieve success in venture capital.
Balancing risk and conviction is crucial in early-stage investments for significant returns.
Authenticity in mission alignment between founders and investors is key for successful partnerships in venture capital.
Deep dives
Investment Philosophy Based on Possibilities
The investment philosophy discussed in the podcast episode emphasizes focusing on what's possible rather than what's probable. This approach is illustrated through the success story of SoRare, a digital player card company where the investors preferred investing early based on the potential of the idea. They focused on understanding the authenticity of the mission and the motivation of the founders, aligning with a high-risk high-reward model, resulting in substantial returns.
Building Conviction in Early Stage Venture Capital
The challenge of balancing and retaining conviction in early-stage venture capital investments is highlighted. Despite the lengthy feedback loops in venture capital, the discussed strategy involves having clear risk appetite and understanding the power law of returns. The success of possible ventures like SoRare showcases the importance of high diversification, expectation of large returns from successful investments, and building long-term relationships with founders and investors.
Importance of Authenticity in Mission
The significance of authenticity of mission, both from a founder and investor perspective, is underscored in the podcast. Founders are advised to articulate their mission clearly and align it with investors who share similar values and visions. Honesty, resilience, and clarity of purpose are essential traits that investors look for in founders when deciding on investment opportunities.
Engagement and Support in Venture Capital
The role of engagement and support in venture capital investments is discussed as a crucial factor for success. Building meaningful long-term relationships with founders and providing continuous support and feedback are important aspects of successful investments. The ability to leverage a diverse network of investors and co-investors for mutual growth and assistance is highlighted as a key strategy in the venture capital landscape.
Navigating Founder Ideation and Investment Decision-Making
The advice for founders navigating ideation phases involves being open, seeking feedback, connecting with other founders, and understanding the venture capital landscape. Discussing ideas, building a supportive network of co-founders, investors, and advisors, and testing motivation are essential steps in the journey towards building successful companies. Transparency, dialogue, and collaboration play a critical role in early-stage entrepreneurship and investment decisions.
My guest for Ep164 of The Startup Playbook Podcast, was Chris Hitchen the Co-founder & Managing Partner of Possible Ventures. Possible Ventures is an early stage venture capital fund that invests in frontier technology. Their approach in investing early, with a high cadence and investing globally has resulted in an incredible portfolio of over 100 […]
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