Tank Talks By Ripple Ventures

Source: Canada’s Venture Capital Landscape Report (2023) — BDCObjectiveThe venture capital landscape is a dynamic and ever-evolving environment, where success is measured not only by achieving high valuations but also by generating strong returns for investors. As we saw companies climb Mount Everest to unicorn statuses in the past 18 months, many failed to get back down safely to survive.It is imperative for Canada to ensure transparency in venture capital returns to remain globally competitive. Open dialogues on challenges and strategies are part of this effort. The aim is to disseminate insights, equip other fund managers with valuable knowledge, and bolster Canada’s standing in the global venture capital sphere. This collective effort has the potential to drive Canadian startups forward and attract international capital and talent to this burgeoning ecosystem.In Canada, the federal government has been influential in creating a conducive environment for startups and venture capital, through initiatives such as the Business Development Bank of Canada (BDC) and the Venture Capital Catalyst Initiative (VCCI). These efforts have proven crucial in supplying public funding to draw in private sector capital and kickstart the Canadian VC ecosystem. The significant contribution of these programs in laying the groundwork for a sustainable and competitive startup ecosystem globally is acknowledged and appreciated. Without such support, a number of companies and funds could face substantial hurdles in launching and realizing their full potential. The federal government’s dedication to fostering innovation and entrepreneurship has played a major role in developing the Canadian startup ecosystem.The 2023 Venture Capital Landscape Report by BDC revealed data on Distribution to Paid-In capital (DPI) Across Vintages, indicating that the upper quartile of Canadian funds from pre-2011 to 2013 recorded a 1.2x DPI. This contrasts with the 2.0x DPI of U.S. incumbent funds during the same period, as reported by Cambridge Associates. This difference illustrates the distinct market dynamics that characterized the less mature Canadian venture capital sector during this time. However, since then, Canada’s ecosystem has seen substantial growth, reflected in an increased number of venture funds and startups, and overall improved performance. Notably, most of the active venture funds in Canada, including Ripple Ventures, have been established in the past 5–7 years, underlining the recency of this expansion.While we acknowledge that not all venture capital funds wind down after the traditional 10-year period and extensions can occur, a strategy that funds can take to protect the performance over the life of the fund is to return at least the original capital within the first 6–7 years. This approach allows for sufficient time and opportunities to graduate the portfolio and reduce the entire reliance on unpredictable outliers of breakout companies alone to return the fund. This strategy increases the chances of moving from a 1x to 3x+ return within the remaining 3–5 years. As such, we want to cover two general approaches to achieving a 3x fund. The first relies solely on 1–2 outlier investments that generate significant returns in the final years while having minimal returns in the earlier stages. The second approach involves consistently returning capital throughout the fund’s lifecycle, allowing the mediocre outcomes to return the original capital and for the winners to drive true profit. We believe that the latter approach is more sustainable and favorable. While the former approach can be challenging, requiring a consistent scale of exits and various factors to align perfectly, our belief is that consistent capital returns across the portfolio create a higher probability to outperform over the long run. At Ripple, we personally invest a significant portion of our net worth into our funds, making us very aligned with our limited partners to strive not only for homerun outcomes but also to return our own original investment. Our goal is to open up the discussion of fund performance, key drivers of winning strategies, and how we can put Canada as a winner on the global stage. By highlighting benchmarks and sharing insights from our journey, we aim to contribute to the broader conversation about driving enterprise value in Canada. We recognize the importance of collaboration and knowledge-sharing in building a strong ecosystem, and we are committed to playing our part in its development.Union Square Ventures — the gold standard for DPIBefore diving into the details, we want to establish the gold standard DPI benchmark that every fund should strive to achieve. Recent returns data from the University of Texas Endowment, as highlighted by Eric Newcomer’s blog, has captured attention. Union Square Ventures has demonstrated exceptional performance, delivering 9x DPI cumulatively across all their funds. Their 2012 vintage fund, with a DPI of nearly 23x, stands as one of the best-performing funds of all time. These extraordinary returns showcase Union Square Ventures’ track record of staying focused on key themes, investing only with high conviction, acquiring material ownership, and keeping fund sizes small to be able to consistently return capital to LPs.Source: University of TexasRipple’s DPI performance relative to incumbents Ripple Ventures has established an early track record in our angel portfolio since 2012 (we call this Fund 0) currently at 6.5x DPI. Although Fund 0 was an angel portfolio with a smaller quantum of capital (which is easier to return), it is worth noting that our success is not solely reliant on one outlier investment to drive strong returns. Instead, we have strategically managed a portfolio including three of ten investments achieving at least 10x cash-on-cash returns (with the highest returning 30X). We have personally recycled a majority of this capital to jumpstart Fund I and attract external limited partner capital for our venture funds.We continue to build on our track record with Fund I (2019 Vintage) with a DPI of 0.5x. Again, Fund I was also a smaller fund compared to most at $10M which makes it much easier to return than a $200M fund like USV’s. Considering the limited maturity of the 2019 vintage, it is important to acknowledge the current challenging market cycle and the pressure for funds to generate significant returns despite the bleak outlook for exits in the near future. As we approach the halfway mark of the fund’s life, if the original capital has not yet been closer to being returned, there is still a long hard way to achieve a 3x+ DPI.When comparing to US incumbents, upper quartile returns were: 2.61x DPI (2011), 1.90x DPI (2012), and 1.48x DPI (2013) respectively according to the latest US Venture Captial return reports. The average DPI across the 2011–2013 vintage is 2.00x DPI, 67% higher than its Canadian counterparts. There is a stark difference between the median performance of top quartile funds in Canada vs the US. In the 2019 vintage, Ripple Ventures is categorized in the top 5% of funds based on DPI in the US so far.While Ripple Ventures Fund I is still in its early stages and hasn’t achieved a 3x+ return yet, we approach this journey with humility, dedication, and empathy. We understand the uncertainties of the venture capital landscape and the possibility that we don’t continue to exceed expectations. However, we are committed to diligently managing our portfolio, making informed decisions, and striving to deliver exceptional returns. With transparency and empathy at our core, we will continue to navigate the evolving market dynamics to create long-term value for our investors.Our view on what drives DPI, and differences in Canada vs the USOwnership and exit value play crucial roles as the primary drivers of DPI in venture capital funds. You need to have at least one or the other to drive returns, and in the best cases, you have both. For example, if you have a $50M fund, you need to own 20% of a $250M exit, or 1% of a $5B exit to return the fund ($50M). Let’s take a look at another graph in the BDC report around median exit values to understand better why DPI may be different in Canada vs the US:Source: Canada’s Venture Capital Landscape Report (2023) — BDCYou can see there’s a very evident difference in the historic outcomes of companies in each country. According to PitchBook, the average exit value for US venture-backed startups was approximately $207M USD in 2019, $263M USD in 2020, and $391M USD in 2021. These are multiples higher than the Canadian counterparts. Although this is the case, we want to acknowledge the potential for creating global winners in Canada, such as Shopify and Lightspeed (public companies), as well as notable private outcomes like Wattpad’s acquisition by Naver for 754 million CAD and Verafin’s sale to Nasdaq for 2.75 billion USD in cash. It is crucial to highlight the potential for Canada to create companies of this scale, but recognize the lower frequency in which this occurs. By learning from and comparing ourselves to the best in the world, particularly the United States, we can identify the strategies and practices that contribute to their success. Why Ripple is investing in both Canada and the US Ripple Ventures recognizes the tremendous potential of the Canadian startup ecosystem and aims to drive enterprise value creation for early-stage companies by leveraging the expertise and resources from the US network. We firmly believe that adopting a strategic investment strategy that spans Canada and the United States is essential for the success of fund managers seeking to achieve 3x+ DPI. Our approach is driven by the objective of bringing valuable knowledge, networks, and resources from the US ecosystem into Canada, accelerating growth, and fostering better returns.In Canada, there is a shortage of founders and employees who have experienced the journey from idea to IPO, hindering the mass development of unicorn companies we’ve seen in the US. By investing across borders, Ripple Ventures facilitates the exchange of knowledge and experience, allowing Canadian founders to tap into a wealth of resources and navigate the challenging “valley of death” stage. This exposure to higher-scale ventures and outcomes creates a fertile ground for innovation, fueling the growth of early-stage companies.We firmly believe that bridging the gap between the Canadian and US ecosystems is pivotal in driving higher enterprise value exits. Currently, Canada only has 25 unicorns generated compared to the US in which there are 700+, and we aim to change that narrative. It must be stressed that investing in Canada today can still be an extremely profitable venture, but this hinges greatly on the degree of ownership an investor can secure. Given the historical performances, a high ownership stake is a significant factor that can help offset the inherent risks and volatility of the scale of venture capital outcomes in Canada. Ripple Ventures is committed to being at the forefront of driving the next generation of category-defining companies in Canada. By leveraging our connections, networks, and experiences from both sides of the border, we aim to catalyze the growth of the Canadian startup ecosystem and pave the way for greater success. If you don’t believe us, just ask our founders if we have been successful at doing this.Why keeping fund size smaller mattersKeeping fund sizes smaller is a strategic choice that aligns with Ripple Ventures’ investment approach and objectives. It allows us to focus on specific stages, check sizes, ownership targets, and industries that fit our investment thesis. By maintaining smaller funds, we prioritize efficient capital deployment and maximize our ability to generate significant returns for our investors. This approach is particularly advantageous when considering the quantum of exit size relative to the respective market and entry stage.We’ve seen USV consistently keep their fund sizes relatively the same in all market environments because their formula works. In our view, the game of venture fund managers should be to execute the strategy that you know works for generating strong returns for LPs and raising/recycling capital to keep it going over multiple funds. At Ripple, we’ve made a commitment to our LPs that we’d never scale the fund past a size that makes sense and is possible to outperform (3x+ DPI). If it ain’t broke, don’t fix it. Ripple’s philosophy in portfolio construction to drive DPIRipple Ventures adopts a strategic approach by investing across both Canada and the US, employing a barbell strategy to optimize returns within each fund. Recognizing the historical disparity in exit values between the two markets, we tailor our investment strategy accordingly. In Canada, where exits have traditionally been lower, the focus is on playing the ownership game. By securing substantial ownership stakes in companies, Ripple Ventures ensures that even in more modest exits, the ownership-driven returns can generate significant DPI for the fund. Conversely, in the US market, where valuations are higher and obtaining ownership can be more challenging, Ripple Ventures is willing to trade off lower valuations. This balanced approach allows us to capture the potential for higher exit values and drive DPI. In our opinion, employing a barbell strategy is essential for fund managers in Canada to ensure that the interplay between ownership and exit scale is thoughtfully priced into their portfolio, maximizing returns and achieving their target of surpassing the gold standard of 3x DPI.At Ripple Ventures, we deeply admire and draw inspiration from funds like Version One Ventures and Golden Ventures, who have successfully executed the strategy of investing across North America &globally while being based in Canada. These funds serve as valuable partners within the Canadian ecosystem, bringing exposure to top-tier founders, operators, and investors from the US. Their ability to connect with and learn from the best in the industry helps them level up not only their own expertise but also their portfolio companies. We share a common goal with these funds — to drive growth, foster innovation, and create a thriving startup ecosystem in Canada by leveraging the insights and resources available across North America.ConclusionOur ultimate aspiration at Ripple Ventures is to become the Union Square Ventures of Canada, driving the best-returning fund out of the country. Merely returning the original investment would be considered a failure for us. That’s why we are igniting this conversation and delving into the intricacies of our strategy. By focusing on early-stage investments, prioritizing ownership, investing across both Canada and the US, and actively driving DPI throughout the entire life of the fund, we are positioning ourselves for a higher probability of achieving our goal of becoming a globally recognized and outperforming fund. Transparency in venture capital returns is crucial for Canada to compete on a global scale. By openly discussing challenges and strategies, we aim to elevate the industry and drive meaningful conversations. Our goal is to share insights, empower other fund managers, and strengthen Canada’s position in the global venture capital landscape. Get in touch: * Matt Cohen, Managing Partner at Ripple Ventures (matt@rippleventures)* Dominic Lau, Partner at Ripple Ventures (dom@rippleventures.com) This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit tanktalks.substack.com

That Sheel Mohnot, Founding Partner of BTV, is a natural storyteller and a good hang, you can just figure that out with his Twitter feed and his track record of creating one of the most popular startup podcasts. That he also happens to be one of the sharpest minds in FinTech investing which makes him an exceedingly interesting guest.This is a wide-ranging conversation that covers Sheel’s early days, what he learned as a founder, and how he’s grown as an investor. Enjoy!A word from our sponsor:The team at Ripple is always focused on helping our founders and portfolio companies find the best partners to work with within the tech and venture capital ecosystem. And that is why we are so excited to announce our partnership with the incredible team at Torys LLP. When it comes to legal support and advice, the team at Torys is the best in class. Torys is a storied Canadian law firm with offices in Toronto, Montreal, Calgary, Halifax and New York City. Torys has been around since its founding in 1941.They have always worked closely with players across the emerging startup ecosystem in all aspects of the creation, acquisition and commercialization of businesses. They help founders determine when and how much to fundraise, how to achieve the right economic structure, how to think about board and control issues and how to successfully navigate different stages of growth. They are also advisors to VC funds, strategic investors, private equity funds and other institutional investors on fund formation and shareholder arrangements to buyouts and other exits.In fact, Torys recently acted as counsel to Maverix PE on the transformative $260M  Miovision Technologies growth funding with an advisory team that included Dany Assaf, Konata Lake and Max Schwartz-Labell on that investment.So whether you are negotiating a new business arrangement or developing a new service offering, Torys helps clients seize new opportunities and build creative, market-leading business models in this fast-paced world we live in every day space.Visit torys.com to learn more.About Sheel Mohnot:Sheel Mohnot is a founding partner of Better Tomorrow Ventures. Before BTV, Sheel was a Partner at 500 Startups, running the 500 FinTech Fund and the FinTech track within the San Francisco Accelerator program. His recent startup experience includes 2 successful FinTech exits – a payments company and a high-stakes auction company. He also created and hosted a podcast called The Pitch.He formerly worked as a financial services consultant at BCG and did Microfinance work at the non-profit Kiva. Sheel holds an MBA from the University of Michigan and a BS from Carnegie Mellon. In this episode we discuss:(02:58) Sheel’s journey to becoming a FinTech investor(07:55) How did growing up in India and around the world help shape him(11:14) Sheel’s time at Fee Fighters and why they sold to Groupon(13:33) What he learned at Groupon(16:31) How the Pitch Podcast came to be(18:58) Selling the podcast to Spotify(20:58) How Sheel started as an Angel investor(22:24) 500 FinTech as a stepping stone to becoming a VC(25:05) His first fundraising experience(28:30) Investing in BTV’s first company before they had finished fundraising(30:18) How his investing journey has evolved(32:22) The importance of being a sounding board for founders(33:20) BTV’s investing thesis(35:18) Who Sheel looks up to as investors(36:29) Why VC needs to be collaborative(37:28) The importance of partnership in the VC/Founder relationship(38:56) Concrete things early-stage founders should ask from their VCs(39:37) How power law informs all of VC and portfolio construction(43:14) Lessons from Sheel’s anti-portfolio(44:59) His stay with Brian Chesky at Airbnb LAFast Favorites* 🎙- Favorite Podcast: Acquired* 📰- Favorite Newsletter /Blog: Marginalrevolution* 📲- Favorite Tech Gadget: iphone/airpods, bidets, Disco lights * 📈- Favorite New Trend: would it be crazy not to say AI?* 📚- Favorite Book: Enders Game* 🤔 - Favorite Life Lesson: "People don't want to do new things if they think they're going to be bad at them or people are going to laugh at them. You have to be willing to subject yourself to failure, to be bad, to fall on your head and do it again, and try stuff that you've never done in order to be the best you can be."Follow Matt Cohen and Tank Talks here!Podcast production support provided by Agentbee.ai This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit tanktalks.substack.com

Big news this week with Matt and John, we cover Cohere raising $270M at a $2.1B valuation (02:24), Salesforce announcing their AI platform that may be vaporware (06:27), Shopify selling its delivery business (09:50), Nasdaq acquires Adenza for $10.5B (13:40), and TCV and Tiger missing their fund goals (15:43).A word from our sponsor:The team at Ripple is always focused on helping our founders and portfolio companies find the best partners to work with within the tech and venture capital ecosystem. And that is why we are so excited to announce our partnership with the incredible team at Torys LLP. When it comes to legal support and advice, the team at Torys is the best in class. Torys is a storied Canadian law firm with offices in Toronto, Montreal, Calgary, Halifax and New York City. Torys has been around since its founding in 1941.They have always worked closely with players across the emerging startup ecosystem in all aspects of the creation, acquisition and commercialization of businesses. They help founders determine when and how much to fundraise, how to achieve the right economic structure, how to think about board and control issues and how to successfully navigate different stages of growth. They are also advisors to VC funds, strategic investors, private equity funds and other institutional investors on fund formation and shareholder arrangements to buyouts and other exits.In fact, Torys recently acted as counsel to Maverix PE on the transformative $260M  Miovision Technologies growth funding with an advisory team that included Dany Assaf, Konata Lake and Max Schwartz-Labell on that investment.So whether you are negotiating a new business arrangement or developing a new service offering, Torys helps clients seize new opportunities and build creative, market-leading business models in this fast-paced world we live in every day space.Visit torys.com to learn more.Follow Matt Cohen and Tank Talks here!Podcast production support provided by Agentbee.ai This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit tanktalks.substack.com

Shaking up the format this week by focusing on what’s happening in the world. We welcome back Mark McQueen to dive into what’s been going on in the world with a lively discussion. Hope you enjoy!A word from our sponsor:The team at Ripple is always focused on helping our founders and portfolio companies find the best partners to work with within the tech and venture capital ecosystem. And that is why we are so excited to announce our partnership with the incredible team at Torys LLP. When it comes to legal support and advice, the team at Torys is the best in class. Torys is a storied Canadian law firm with offices in Toronto, Montreal, Calgary, Halifax and New York City. Torys has been around since its founding in 1941.They have always worked closely with players across the emerging startup ecosystem in all aspects of the creation, acquisition and commercialization of businesses. They help founders determine when and how much to fundraise, how to achieve the right economic structure, how to think about board and control issues and how to successfully navigate different stages of growth. They are also advisors to VC funds, strategic investors, private equity funds and other institutional investors on fund formation and shareholder arrangements to buyouts and other exits.In fact, Torys recently acted as counsel to Maverix PE on the transformative $260M  Miovision Technologies growth funding with an advisory team that included Dany Assaf, Konata Lake and Max Schwartz-Labell on that investment.So whether you are negotiating a new business arrangement or developing a new service offering, Torys helps clients seize new opportunities and build creative, market-leading business models in this fast-paced world we live in every day space.Visit torys.com to learn more.Topics we cover:(01:59) BetaKit’s reporting on the Collision Conference asking for more government support(11:35) BDC report on Government spending in Canada(18:58) The banking environment in Canada for small businesses in the wake of SVB(25:29) How carbon taxes are impacting Canadians in this inflationary market (Mark’s post for further reading)(32:02) The PGA Tour/LIV golf merger This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit tanktalks.substack.com

It’s always fun to reconnect with past guests and early success stories from our Ripple Community, and today’s guest is both, Emily Lonetto was a Tank Talks guest back when it was a small in-person event at our co-working space, The Tank. Back then she was the first leadership hire at our portfolio-company Voiceflow, now she’s the Director of Community at Webflow as well as a Venture Partner with us at Ripple Ventures. Emily has amazing perspectives on growth and community, and I hope you enjoy our conversation.About Emily Lonetto:Emily Lonetto is the Director of Community at Webflow. She is an expert marketer and growth expert that started her career at Carnivore Club, a subscription food box, and moved onto to Tilt, which was acquired by AirBnB, and then to Voiceflow. She did her undergrad at Western University.In this episode we discuss:(01:34) Emily’s journey to becoming a growth hacker and community expert(04:15) Common challenges to growth for early-stage startups(05:25) Differences between standard marketing and growth(07:04) Her experience helping grow Voiceflow(10:12) The importance of community feedback(10:56) What growth means in a startup context(14:00) How startups should think about growth marketing(15:41) Growth Marketing tactics(18:10) Emily’s Growth Marketing tech stack(21:27) Analytics and testing that you should use to track growth(23:06) Using negative feedback to help hone your offering(24:12) How Emily has evolved as a community builder across her career(27:10) Factors that can hamper a community(30:11) How the Webflow community guided her even before working there(31:55) Positives of having a strong community(34:14) Misconceptions around community for early stage founders(37:27) How growth in community is defined at Webflow(39:51) Emily’s strong contribution to the Ripple ecosystemFast Favorites* 🎙- Favorite Podcast: Reply All* 📰- Favorite Newsletter/Blog: Lenny Rachitsky* 📲- Favorite Tech Gadget: iPhone 14* 📈-  Favorite New Trend: The comeback of emo and alternative music* 📚- Favorite Book: Moonwalking with Einstein* 🤔 - Favorite Life Lesson: Change is made up of dozens of small iterationsFollow Matt Cohen and Tank Talks here!Podcast production support provided by Agentbee.ai This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit tanktalks.substack.com

There’s a lot going on in the world today, and one of the Canadians who has been plugged into the pulse of Ottawa, Venture Capital, and Banking is our guest, Mark McQueen, Founder of Wellington Growth Partners and former President of CIBC Innovation Banking.We had a great conversation about what’s happening in Canada and globally in the markets, and how we should think about events as entrepreneurs and investors.About Mark McQueen:Mark McQueen is the Founder of Wellington Growth Partners, a family office and Angel Fund. He led the growth of Wellington Financial LP, a venture debt fund, from conception in 2000 to the firm's acquisition by CIBC in January 2018. He became President of CIBC Innovation Banking until his recent decision to leave the firm in 2022. Prior to his time in finance and banking, he served in Ottawa in various advisory roles to the Treasury Board and Prime Minister, Brian Mulroney.Mark started working as a professional news photographer in High School. By the time he was 16, his photographs had appeared in such publications as Time Magazine, The Globe & Mail, and The Toronto Star. He received his bachelor’s from Western University.In this episode we discuss:(00:01:30) Mark’s life journey that got him here today(00:03:13) Lessons he learned from his Father Rod McQueen(00:05:18) Mark’s time as a photographer(00:06:46) Working in government out of school(00:10:16) Why meeting in person can give a lot of context to who someone is(00:11:34) Jumping into banking instead of getting an MBA(00:13:20) The importance of service in banking(00:14:35) What his training was as a banker and how he views the markets(00:17:25) The importance of doing what the work requires(00:21:02) Raising his first fund in 2000(00:23:27) On choosing the name Wellington (twice)(00:25:27) Surviving the Global Financial Crisis in 2008(00:30:22) Growing his loan book 10x after being acquired by CIBC(00:31:13) How the market has evolved over Mark’s career(00:33:42) The reason behind the SVB implosion(00:36:42) Why the Canadian VC market is so much smaller than the US(00:41:36) Reasons why mining and real estate companies are easier to fund in Canada(00:45:45) Why Canadians seem fine with medium-sized exits(00:48:21) The crisis of small-cap companies de-listing(00:50:09) Has the venture industry left him jaded?(00:51:34) Will Mark return to politics, as some have urged?(00:54:29) On his love for Pearl Jam(00:58:33) The farthest he’s travelled to see the band(01:00:45) How he spends his days nowFast Favorites:* 🎙- Favorite Podcast: Live On 4 Legs* 📰- Favorite Newsletter / Blog: Paul Wells* 📲- Favorite Tech Gadget: Eero* 📈- Favorite New Trend: Taking the Summer off* 📚- Favorite Book: The Last Best Hope* 🤔 - Favorite Life Lesson: Be frank and authentic in all your endeavoursFollow Matt Cohen and Tank Talks here!Podcast production support provided by Agentbee.ai This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit tanktalks.substack.com

Elements that make up a strong startup ecosystem are founders and talent to execute the vision, investors with capital, and finally journalists that are documenting what the founders and investors are doing. Without that coverage, it’s difficult to attract more founders and more investors which are needed to create a vibrant ecosystem that will hopefully have a larger impact on society.Our guest today is Sean Silcoff a business reporter at the Globe and Mail covering the Canadian startup scene. Sean’s book, Losing the Signal: The Untold Story Behind the Extraordinary Rise and Spectacular Fall of BlackBerry, which he wrote with his co-author Jackie McNish in 2013 was turned into a feature film starring Glenn Howerton and Jay Baruchel. I’ve seen it, and it’s such a great take on the rise and fall of RIM.We also have a news breakdown with John Ruffolo.About Sean Silcoff:Sean Silcoff writes about technology and innovation for the Globe and Mail. He is the winner of three National Newspaper Awards and is the co-author of Losing the Signal: the Spectacular Rise and Fall of BlackBerry, which was released in May 2015. Losing the Signal won Canada’s National Business Book Award and was shortlisted for the International Financial Times & McKinsey Business Book of the Year. Sean joined the Globe and Mail in January 2012; he previously worked as a columnist and Montreal correspondent for the National Post and as a staff writer at Canadian Business Magazine.In this episode we discuss:(00:01:11) News recap with John Ruffolo(00:19:25) Sean’s journey to becoming a tech journalist(00:28:02) How Sean ended up conecting and covering with CEOs(00:33:57) Dealing with high-profile people off the record(00:35:45) How Sean’s audience has evolved over the years(00:37:12) The changes Sean has seen in the Canadian ecosystem in the last 20 years(00:39:52) Sean’s duty to his readers to report news when it comes to him(00:40:36) Striving for timelyness and accuracy in a challenging environment(00:44:08) Why the media missed stories like RenoRun and ClearCo(00:47:47) Fighting the urge to put opinions in his writing(00:50:45) Thoughts on the wave of IPOs in 2020 and 2021(00:54:07) Benefits of being a public small cap Canadian tech company vs. the benefits of staying private for longer(00:57:58) Will ChatGPT replace journalists(01:02:55) Writing the story of John Ruffolo’s cycling accident(01:06:30) Watching his book Losing the Signal become a film(01:12:09) When Sean gets jaded by the industryFast Favorites:* 🎙- Favorite Podcast: Tank Talks, Pivot* 📰- Favorite Newsletter / Blog: Stratechery, Maverix* 📲- Favorite Tech Gadget: Olympus Recorders* 📈- Favorite New Trend: Fluidity* 📚- Favorite Book: Sapiens, Walt Disney, Shoe Dog, The Founder* 🤔 - Favorite Life Lesson: Work hard. There are no shortcuts to ultimate success and satisfaction.Follow Matt Cohen and Tank Talks here!Podcast production support provided by Agentbee.ai This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit tanktalks.substack.com

It’s not surprising that one of the pioneers of online dating believes that being open to options and new ideas will help your life and career. Sam Yagan is Co-Founder and Managing Director of Corazon Capital, an early-stage firm based in Chicago with a MidWest focus. But Sam is most known for Co-Founding OKCupid! and moving up to become the CEO of Match Group, where he helped launch Tinder.This was a wonderful and sometimes introspective conversation on the challenges of being a founder, the power of being open to new possibilities, and where we are with the current market.We also have a news recap with John Ruffolo.About Sam Yagan:Sam Yagan serves as Co-Founder and Managing Director of Corazon Capital, an early-stage venture capital firm. He recently served as the CEO of ShopRunner, Inc., leading its 2020 sale to FedEx Corp.Prior to ShopRunner, Sam served as CEO of Match Group where he led the company through the launch of Tinder in 2012 and through Match Group’s IPO in 2015. Sam’s prior entrepreneurial ventures include SparkNotes (founded in 1999) and OkCupid (co-founded in 2004).Sam has a BA from Harvard College and an MBA from the Stanford Graduate School of Business.In this episode we discuss:(00:01:17) News recap with John Ruffolo(00:20:58) Sam Yagan’s journey to entreprenuership(00:26:14) Was his career all luck?(00:28:20) How the exit of SparkNotes went(00:30:02) Regrets about not buying SparkNotes back(00:34:53) Seeing companies with broken cap tables but functioning businesses(00:36:57) Why they started OkCupid!(00:41:20) Deciding to sell to a larger rival, and then becoming its CEO(00:45:45) How Sam dealt with Imposter Syndrome(00:49:30) The PlentyoFish Acquisition(00:52:05) Deciding to career pivot to ecommerce(00:54:46) Lessons learned as an outsider coming in at ShopRunber(00:58:32) Why Sam chose to be a MidWest VC(01:01:23) How Sam’s investing thesis has evolved(01:03:33) What Sam likes to invest in(01:04:26) Why they missed on Cameo(01:05:24) What Sam is passionate about in the futureFast Favorites:* 🎙- Favorite Podcast: Succession* 📰- Favorite Newsletter /Blog: Matt Levine’s Money Stuff* 📲- Favorite Tech Gadget: 8 Sleep* 📈- Favorite New Trend: Alcohol abstinence * 📚- Favorite Book: Influence* 🤔 - Favorite Life Lesson: Be willing to failFollow Matt Cohen and Tank Talks here!Podcast production support provided by Agentbee.ai This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit tanktalks.substack.com

Analytics has led to a revolution in how we approach many aspects of modern life, from how we field a baseball team to when is the right time to send a tweet. And now data and analytics are reinventing how LPs view Venture Funds and how those funds invest. Our guest today uses powerful analytics to help her clients participate in Venture investing at scale, Jamie Rhode, CFA is Principal at Verdis Investment Management, a large Family Office. The analytics she uses and how she communicates with the GPs she invests in are the focus of today’s episode. It’s a fascinating look at putting emotions aside when investing to maximize returns.About Jamie Rhode:Jamie Rhode is Principal at Verdis Investment Management, focused on venture capital, private equity, and hedge fund investment sourcing and due diligence.She joined Verdis from Bloomberg, where she held roles in both equity research and credit analysis. Jamie is a licensed Chartered Financial Analyst, and earned her bachelor’s degree from Drexel University.In this episode we discuss:(01:27) Jamie’s journey into investing(03:14) A history of Verdis Investment Management(06:20) How Verdis’ approach to venture investing has evolved through the use of analytics(10:37) Not needing to be the first investor in a geography(12:23) Fund sizes they prefer based on their data(17:12) Why Jamie thinks follow-on reserves are a flawed investment strategy(20:22) The data around being overly focused on valuation as a GP(23:06) The value to LPs of recycling(23:56) How shots on goal and consistency of investment is more important than finding winners(25:30) The infrastructure Verdis has to monitor its portfolio(28:52) Qualitative factors that Verids uses to evaluate investments when there is little data(32:40) Does the current market still support the data they have been using(36:14) Data around the importance of VC Brand(39:47) What Jamie’s deal funnel looks like and how she manages her meetings(42:27) Why Family Offices are typically very private(43:32) The effect of the current market on Jamie’s investingFast Favorites* 🎙- Favorite Podcast: Village Global* 📰- Favorite Newsletter /Blog: lifescivc.com* 📲- Favorite Tech Gadget: Tesla Model Y* 📈- Favorite New Trend: ChatGPT* 📚- Favorite Book: Thinking In Bets and Quit* 🤔 - Favorite Life Lesson: There are two things that determine how our lives turn out, the quality of our decisions and luck.Follow Matt Cohen and Tank Talks here!Podcast production support provided by Agentbee.ai This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit tanktalks.substack.com

The tables have turned on our host Matt Cohen who was recently a guest on the BetaKit podcast and had a spirited discussion about the recent meltdown of RenoRun. BetaKit features weekly podcasts discussing Canadian technology news and global startup news from a Canadian perspective and it was an honour to be a guest on the show. You can listen to the whole episode where Matt shares the history of Ripple Ventures and a lot more here.From BetaKit’s post:BetaKit has reported this year on LPs unable to honour capital calls, leaving Canadian VCs to pull out or renegotiate deals with Canadian startups—one of those startups being Montréal-based RenoRun, which recently filed for creditor protection after failing to raise four different rounds to keep the company alive (along with a few other Hail Mary attempts). Most recently, the Globe and Mail reported that Toronto-based Clearco is looking to raise $20 million USD at a $200 million USD valuation—one-tenth of what it was at its height (BetaKit can confirm we’ve heard the same numbers).You know things are bad when pension-backed VCs like OMERS Ventures’ Laura Lenz are trying to encourage downtrodden founders by tweeting that her firm is still investing.This week we also welcome back John Ruffolo to break down the big tech news.Follow Matt Cohen and Tank Talks here!Podcast production support provided by Agentbee.ai This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit tanktalks.substack.com