Consumer VC: Venture Capital I B2C Startups I Commerce | Early-Stage Investing I Brands How He Went From the Music Industry to VC, Investing in Tech vs. Brands, and When Down Rounds Make Sense with Jon Keidan
Oct 18, 2024
Jonathan Keidan, founder of Torch Capital and former talent manager in the music industry, discusses his transition to venture capital. He explores how nurturing emerging artists parallels supporting startup founders. He shares insights on investing in tech versus inventory-based businesses and emphasizes the importance of brand trust in attracting early-stage investments. The conversation highlights key strategies for navigating shifting market landscapes and the value of strong communication with consumers. Keidan also reflects on lessons learned from influential figures in his career.
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From Artist Manager to VC
- Managing artists and investing in founders share deep similarities in talent spotting and vision support.
- Both roles require building audiences and being deeply incentivized to the success of those they support.
Inventory vs Tech Investing Dynamics
- Inventory businesses face lower multiples and longer growth compared to tech, often requiring more capital and facing higher risks.
- Successful venture-backed brands must be valued appropriately at different growth phases to avoid unrealistic expectations.
Build Brand Through Trust
- Build brand by cultivating deep trust with your customers through transparency and excellent service.
- Over-communicate honestly about issues to maintain loyalty and manage expectations effectively.
