StrictlyVC Download Drive Capital's Columbus gamble is paying off
Jul 8, 2025
In this discussion, Chris Olsen, co-founder of Drive Capital—a venture firm shaking up traditional investment norms from Columbus, Ohio—shares insights on their unique approach. He dives into why their strategy of smaller funds and geographic diversity is thriving while others falter. The conversation reveals how Silicon Valley billionaires are flocking to Columbus and highlights groundbreaking investments blending technology with traditional industries. The episode also touches on the significant shift in the venture capital landscape post-COVID and the rise of Columbus as a tech hub.
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Venture Math Needs Realism
- Venture returns often come from $3 billion exits, which happen frequently, not just mega $50B outcomes.
- Smaller funds with larger ownership stakes handle down markets better than mega funds chasing unicorns.
Thoughtful Automation Exit Example
- Drive Capital exited Thoughtful Automation, an AI company, for a near fund returning exit below $1 billion.
- This type of consistent, sizable exit drives their strong portfolio returns.
LP Scrutiny Tightens in Venture
- LPs now expect risk-adjusted returns as bond yields rise, making venture less attractive without distributions.
- Lack of cash distributions and increased portfolio exposures cause LPs to cut venture managers significantly.