Equity Startups should rethink how they pursue sales and traction, according to VC Tim Chen
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Oct 29, 2025 Tim Chen, founder of Essence VC and former technical startup founder, discusses the evolving landscape of venture capital and his journey into solo investing. He challenges the VC playbook, especially for infrastructure startups, advocating a focus on strategic pivots over quick revenue. Tim shares transformative advice he offered portfolio companies and the insights gained from his small startup exit, emphasizing the importance of blending technical skills with market understanding for founders.
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From Small-Exit Founder To Accidental VC
- Tim Chen became an accidental VC after founding a startup, raising a seed round, and doing a small exit to Caldera.
- He started angel investing, got encouragement from Jake Zeller, and then raised a small fund focused on DevTools and infra.
Pivoting Comfy To Own The Ecosystem
- Chen told Comfy's founders to pivot from a consumer camera product to owning the company behind Comfy UI.
- He pushed them to recruit the open-source creator and delay coding and fundraising until they secured that co-founder.
Hire A Hybrid Technical-Business Advisor
- Find an advisor who straddles engineering depth and market experience if you can't get someone like Tim on board.
- That single combined perspective accelerates decision-making and avoids piecemeal guidance.