VC10X - He passed on Uber & LinkedIn! - David Hornik, Founding Partner, Lobby Capital

In this episode, Prashant Choubey talks to David Honik, Founding Partner of Lobby Capital & someone with over 23 years of investing experience in startups.

They talk about:

The Rebirth of August Capital as Lobby Capital:-

- David shared insights into the evolution of August Capital and their decision to transition to Lobby Capital.

- They discussed the importance of maintaining a smaller fund to stay focused on supporting and nurturing promising companies.

- Lobby Capital raised a $225 million fund and plans to continue its approach with Lobby II.

Managing Split Funds:-

- David explained the concept of split funds and how August Capital managed its core fund and special opportunities fund.

- They highlighted successful investments in companies like GitLab, Bill, Splunk, and Fastly.

- The approach of managing split funds proved to be sensible and beneficial for both LPs and the organization.

The Ideal Amount of Funds in Venture Capital:-

- We delved into the debate surrounding the ideal amount of funds that should be managed to generate successful returns.

- David shared their opinion and how Lobby Capital implements its seed investment strategy.

Venture Capital as the Best Job in the World:-

- David discussed why venture capital is considered the best job in the world.

- They highlighted the thrill of witnessing companies grow from small teams to large, revenue-generating entities.

Criteria for Evaluating Startups and Making Investments:-

- We explored the criteria Lobby Capital considers when evaluating startups and making investments.

- David emphasized the importance of finding amazing individuals who are making a positive impact on the world.

Decision-Making Process within the Partnership:-

- David explained the decision-making process within their partnership, focusing on reaching a consensus rather than relying on a voting mechanism.

The Importance of Human Capital in Venture Capital:-

- We discussed the importance of human capital in venture capital and how Lobby Capital actively supports their portfolio companies.

- David highlighted the hardships entrepreneurs face and how Lobby Capital aims to be there for founders in both their professional and personal lives.

Regrets and Lessons from Investing:-

- David shared their regrets about passing on Uber and LinkedIn, emphasizing the importance of investing in amazing people.

- They discussed the limitations of AI in venture capital and the value of identifying remarkable entrepreneurs.

If you're interested in learning more about these topics and hearing David's insights firsthand, make sure to tune in to this episode on our podcast platform.

Don't forget to follow David Hornick on social media:

Twitter - https://twitter.com/davidhornik

LinkedIn - https://www.linkedin.com/in/davidhornik/

Threads - @davidhornik

Hosted by Prashant Choubey

Twitter - https://twitter.com/ChoubeySahab

Linkedin - https://www.linkedin.com/in/choubeysahab/

As always, we appreciate your support and feedback. If you have any questions or suggestions for future episodes, feel free to reach out to us.