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

20VC: Breaking News: Ankur Nagpal Raises $70M for Vibe Capital, What The Next Decade For Venture Will Look Like, Do VCs Actually Add Any Value & Pre-Emptive Rounds, When To Take Them and When To Reject Them

Oct 20, 2021

Ankur Nagpal, Founding Partner at Vibe Capital, discusses his successful transition from founder of Teachable, which sold for $250M, to venture capitalist. He reveals insights about his new $70M fund and how his perspective on investment has evolved. Ankur shares provocative thoughts on the potential drawbacks of VCs, emphasizing the importance of value for founders. He dives into the strategies for portfolio construction, the significance of relationships within VC, and the unique opportunities emerging markets present for investors.

Ask episode

AI Snips

Chapters

Books

Transcript

Episode notes

ANECDOTE

Early Investment Failures

Ankur Nagpal's first two angel investments failed.
He learned from those failures, emphasizing the importance of reps and data for honing instincts.

INSIGHT

Importance of Data-Driven Instincts

Investors rely heavily on instincts, but instincts require sufficient data points.
Reading and theory are no substitute for practical experience and seeing investment outcomes.

ADVICE

Portfolio Construction Strategy

Ankur Nagpal aims for a concentrated portfolio of approximately 40 core positions in Fund II.
He targets investments between $300,000 and $4 million, aiming for 5% ownership.

Get the Snipd Podcast app to discover more snips from this episode

Get the app

Ankur Nagpal is the Founding Partner @ Vibe Capital, today announcing his new $70M solo GP fund and with a track record that includes the likes of Roam Research, Eight Sleep, Circle, Hone Health and Maven to name a few. Prior to entering venture, Ankur was the Founder and CEO @ Teachable, a platform where educators can create and sell their own online courses. Ankur led the company until their reported $250M acquisition to Hotmart in 2020.

In Today’s Episode with Ankur Nagpal You Will Learn:

1.) How Ankur made his way into the world of venture investing having founded and exited Teachable for over $250M having raised just $13M in venture funding?

2.) From Angel to Fund: How did Ankur's mindset change with the transition from angel to institutional VC? How does Ankur feel about the rise of party rounds? What does Ankur advise founders trying to get brand names on cap tables?

3.) Portfolio Construction: With the new fund, how does Ankur think through portfolio construction? What is his required level of ownership? How does Ankur feel about optionality checks to get data and information for a larger check down the road? Does Ankur feel it is possible to build ownership in your best companies?

4.) The Future of Venture: Why does Ankur feel that largely, VCs detract value when they invest in a company? Base level, what is Ankur's promise to founders he invests in? From his time as a founder, what does founders most want in their cap table? Will we see a generation of operator-led funds? Will this be a game of the 1%? How will the large funds respond to this?

5.) Emerging Markets: What are the 3 core characteristics that make emerging markets so attractive for Ankur? What elements concern Ankur when investing in emerging markets? How does he screen for integrity with more granularity? How does Ankur analyse the progression of emerging markets in terms of their own hype cycles?

Item’s Mentioned In Today’s Episode with Ankur Nagpal

Ankur’s Favourite Book: Losing my Virignity