The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch

20VC: Investing Lessons from Fred Wilson and Why Small Funds Outperform Large Funds | Why the Secret to Winning in Venture is Splitting Deals |Learnings From the Biggest Hits and Biggest Losses | Why Anyone That Always Does Their Pro-Rata is Wrong with Mo

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Aug 8, 2022

In this engaging conversation, Mo Koyfman, Founder and General Partner at Shine Capital, shares his extensive journey from IAC to venture capital. He discusses the advantages of smaller funds, emphasizing their ability to make informed decisions and outperform larger counterparts. Mo also dives into the intricacies of pro-rata investment strategies and the importance of mentorship in a competitive landscape. With a blend of insightful lessons and personal anecdotes, he highlights the need for strong relationships between investors and founders.

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ANECDOTE

Accidental VC

Mo Koyfman's entry into venture capital was unplanned, starting with a role at Bear Stearns.
He transitioned to IAC, then Spark Capital, before founding Shine Capital.

INSIGHT

Firm Structures

Mo Koyfman learned the importance of firm structure while at Spark Capital.
He prefers clear leadership and governance, contrasting partnerships with more divided decision-making.

ADVICE

Strong Opinions, Weakly Held

Have strong opinions but be open to changing them.
Prioritize getting to the right answer over being right, embracing data and challenges.

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Mo Koyfman is the Founder and General Partner @ Shine Capital, who announced earlier this year Shine II, a $200M early-stage fund, and Shine Opportunities I, a $100M vehicle. Prior to founding Shine, Mo was the Managing Member @ Moko Brands where he made angel investments in Coinbase, Polychain, Harry's to name a few. Before Moko, Mo spent over 7 years as a General Partner @ Spark Capital where he made investments in Plaid, Warby Parker, Skillshare and Hivemapper, to name a few. Finally prior to Spark, Mo spent over 5 years at IAC where he oversaw group of companies that included Connected Ventures, parent of Vimeo, CollegeHumor & BustedTees.

In Today's Episode with Mo Koyfman:

1.) From Entrepreneurial Parents to IAC, Spark Capital and Founding Shine:

How did Mo make his way into the world of venture having worked with Dara Khros, Barry Diller and Jeremy Liew?
What were some of the biggest takeaways from his time with Barry Diller and IAC?
How did Mo's time at Spark impact his investing mindset? What did he learn that he took with him to founding Shine?

2.) Investment Firm vs Investment Partnership:

What are the biggest differences between investment firms and investment partnerships?
What are the biggest risks founders are taking when they take money from investment firms?
Mo has very strong beliefs, how does he manage and inspire debates within his firm without shutting down or intimidating younger, less experienced team members?
What does Mo mean when he says, "firms are great but partners matter".

3.) How To Win in Venture:

Why does Mo always believe that small funds outperform large funds?
What have been some of Mo's biggest lessons from Fred Wilson on fund strategy and sizing?
How much of an emphasis does Mo place on the importance of ownership?
Why does Mo believe the way to win in venture is to be collaborative?
Why does Mo believe in the macro conditions we are entering, the landscape is about to become a lot more collaborative?
Why does Mo believe any firm that says they will always do their pro rata is lying?

4.) The Lessons: Success and Failure:

What are some of Mo's biggest lessons from his biggest wins, like Plaid at seed?
That said, why does Mo believe it is so dangerous to try and learn lessons from the wins?
What failures have been most impactful to Mo? What did he take away from them?
Why does Mo believe that making great burgers is like building great companies?

Items Mentioned in Today's Episode:

Mo's Favourite Book: Portnoy's Complaint by Philip Roth