"Turpentine VC" | Venture Capital and Investing

E59: Mike Maples Jr. on Disruptive Investing

Oct 10, 2024

Mike Maples Jr., Founding Partner at Floodgate and author of "Pattern Breakers," shares insights from his experiences investing in groundbreaking startups like Lyft and Twitter. He discusses the importance of non-consensus thinking and identifying unique founder traits. The conversation delves into the critical role of inflection points in entrepreneurship, shaping product-market fit, and the strategies for navigating investment challenges. Maples emphasizes staying true to one's vision and the value of originality in venture capital.

57:49

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Mike Maples Jr.

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Quick takeaways

Startup capitalism is about creating disruptive value, emphasizing the need for founders to propose innovative ideas that challenge existing norms.

The concept of 'pattern breaking' is vital for startups to carve out unique market positions rather than competing within established frameworks.

Building authentic relationships with limited partners is crucial, focusing on shared visions for the future of venture capital instead of transactional engagements.

Deep dives

Understanding Startup Capitalism

Startup capitalism differs fundamentally from traditional capitalism by focusing on creating value through disruptive ideas rather than persistent compounding. Startups seek to change the rules of the game rather than play by the existing ones, thereby defining a new competitive landscape. This approach emphasizes the need for entrepreneurs to propose radically different futures that challenge the status quo, making it essential for venture capitalists to identify and invest in these visionary startups. This concept highlights the importance of non-consensus ideas that can reshape industries, drawing attention to the unique attributes of startup founders who envision and work towards these groundbreaking changes.

Intro

5min

Navigating Investments and Pivots

14min

Navigating Product-Market Fit and Founder Insights

4min

Navigating Inflection Points in Entrepreneurship

15min

Navigating the Landscape of Unique Investment Advantages

3min

Embracing Uniqueness in Venture Capital

10min

Understanding Your Circle of Competence in Investing

3min

Mike Maples Jr., Founding Partner at Floodgate, sits down with David Weisburd to discuss Mike’s new book “Pattern Breakers: Why Some Start-Ups Change the Future”. This is a masterclass on early-stage venture investing. Mike shares his views on identifying ideas and founders that led to his early investments in Lyft, Twitter, and Okta. They also cover how Mike thinks about fundraising from LPs, his learnings from legendary LP David Swensen, and the power and importance of pursuing non-consensus ideas.

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RECOMMENDED PODCAST:

🎙️The 10X Capital Podcast

David Weisburd interviews LPs and GPs to examine the Venture Capital ecosystem through the lens of Limited Partners.

Spotify: https://open.spotify.com/show/2MHgyKMmJgznPI66MLxZfC

Apple: https://podcasts.apple.com/podcast/id1697772657

Youtube: https://youtube.com/@10xcapitalpodcast

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LINKS:

Floodgate: https://www.floodgate.com/

Pattern Breakers Website: https://www.patternbreakers.com/

Pattern Breakers: Why Some Start-Ups Change the Future: https://www.amazon.com/Pattern-Breakers-Start-Ups-Change-Future/dp/1541704355

10x Capital Newsletter: https://10xcapitalpodcast.com/

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X / TWITTER:

@m2jr (Mike Maples)

@dweisburd (David Weisburd)

@TurpentineVC

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TIMESTAMPS:

(00:00) Intro

(01:03) Introduction to "Pattern Breakers"

(02:22) The role of startup capitalists

(04:40) The Twitter story and insights on early-stage investing

(07:04) The importance of founder future fit

(15:13) Product market fit: deciding when to pivot vs. stay the course\

(21:33) Sponsors: Carta | Oracle

(23:22) Insights empowering new business models

(28:48) Creating movements and the role of passion

(33:19) Building relationships with LPs

(38:39) Sponsor: Squad

(39:45) Advice for new VCs raising money

(41:44) The importance of pursuing non-consensus ideas

(45:18) Lessons from David Swensen

(49:28) Benefits of a compatible partnership

(51:16) Circle of competence and competitive advantage in VC

(53:54) How to find Mike’s new book "Pattern Breakers"

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