E18: Avlok Kohli, CEO of AngelList on How He Turned AngelList into a $4 Billion Dollar Company
Nov 7, 2023
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Avlok Kohli, CEO of AngelList, discusses growing AngelList into a $4B company, traits of successful founders, the value of MBAs, GP product at Angellist, building unique products, future plans for Angelus, and requesting referrals to family offices.
Investors should prioritize unique insight and differentiated approaches in selecting companies to invest in.
Entrepreneurs may turn down acquisition offers to pursue market leadership and significant growth.
Selecting CEOs or leaders for startups should consider the balance between a founder mentality and operator skill sets.
Deep dives
Importance of Unique Insight in Investor Selection
Investors should prioritize having unique insight and differentiated approaches when selecting companies to invest in, as there is no single way to pick a great company. The ability to think outside the box and see opportunities that others may overlook is a valuable skill for investors.
The Rationality Behind Rejecting or Accepting Offers
Entrepreneurs may seem 'crazy' when they turn down acquisition offers, but it can be a rational decision based on their belief that their company has the potential to become a market leader and achieve significant growth. The decision to accept or reject offers depends on the context and the company's market positioning and potential for future success.
The Importance of Founder Mentality and Operator Skill Set
When selecting CEOs or leaders for startups, it is important to identify individuals with a founder mentality who possess the ability to drive rapid creation and growth. While operator skill sets are also valuable, the specific needs of a company determine whether a founder mindset or an operator mindset is crucial at a given moment in time.
Balancing Empathy and Clarity in Leadership
Empathy can be a valuable trait for a leader, but it can also hold them back from making clear-eyed decisions. Leaders should strike a balance between empathy and decisiveness, being able to see the truth quickly and take action, while also considering the impact on individuals and maintaining stability within the organization.
The Role of Emerging Managers in the Startup Ecosystem
Emerging managers, typically investing in pre-seed and seed rounds, play a critical role in the startup ecosystem. They provide essential capital and support to early-stage companies, allowing them to grow and succeed. Their active involvement ensures a vibrant pre-seed and seed market, fostering innovation and opportunity for promising startups.
Avlok Kohli, CEO of AngelList sits down with David Weisburd and Erik Torenberg to discuss how he grew AngelList into a $4B dollar company. We’re proudly sponsored by Bidav Insurance Group, visit lux-str.com if you’re ready to level up your insurance plans.
(0:00) Episode Preview
(0:59) Why Founders need to be resilient
(2:49) Why it’s rational to double down on yourself
(4:57) Founder vs Operator mentality
(11:07) Why empathy can hold leaders back
(13:21) Episode Sponsor: Bidav Insurance Group
(14:16) Do MBAs matter?
(16:39) Avlok’s views on emerging managers
(19:27) How AngelList services large funds
(21:34) AngelList Data Room and why it’s been mass adopted by funds
(22:48) How managers should utilize Treasuries
(25:04) AngelList’s product philosophy
(27:31) How CFOs balance CEOs
(29:50) What we can learn from CashApp and Square
(32:08) The importance of “disagree and commit”
(34:41) The fallacy of the 10% turnover rule
(36:24) AngelList’s wealth of data
(38:35) “Power law is a hell of a thing”
(41:44) Gauging investor skillset
(44:09) “The primary place where Naval lives is in building great products”
(48:48) AngelList’s plans to be the system of record for all private market transactions
(50:51) How to reach Avlok
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