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Sheel Tyle

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2018-01-02

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2018-01-02

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1. “Potentially coinvest on some of their opportunities. I usually recommend that over just being a venture capitalist yourself, not because I don't want other venture capitalists, but I think it's actually really hard. I mean, the best deals are ones that are competitive and they have to be in the game. And so what sometimes I worry that if you haven't done this before and don't have that network, then the opportunities you see might be the stuff that is more publicly available. And if it's more publicly available, you should ask yourself why. And usually that's because they didn't raise from the top venture firms. So I wouldn't want the first experience. Until you know this is something that you're uniquely suited for.”

   2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source

2. “Yes, I would say there are a couple of things to do. I think the first is read. There are a bunch of things you can read from articles and news publications. The standard are sort of like the tech crunches and the venture beats of the world. That should give you a sense of what's happening. But I also think there are a number of books that are useful and the authors to look up or Bill Draper is one of the most prolific venture capitalists. I think one of the founders, frankly, of the venture industry, he's written a great book, even books like Adam Grant's Originals is useful as you think about how to evaluate companies and what makes originals originals because entrepreneurs are originals. So they're books and then there's investing. So it depends on your means. If you are of means, I would say go be an investor in one or two venture funds. You'll learn how they do it and it'll give you opportunities to see what they're investing in.”

   2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source

3. “Between the two, what each of each constituent is going to want in this product and how they're going to react. And how do I make sure that the biases that are built into this product are the right ones and not the wrong ones? So he risked his life. Every time you do one of those, I mean, we know this, officers are very often killed in the line of duty, and God bless them because they are doing heroes work, but it's dangerous. And he's not even a trained officer. He doesn't even hold a weapon, but he's going along with these guys. So that's the type of stuff I respect. And my founders, the ones I want to back are the ones who experienced the problem that they're tackling for themselves.”

   2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source

4. “Safety, but for racial relations. If you think about what's going on in this country as it relates to body cameras and all the issues that have happened with particularly white police officers and black drivers and black stops, let's say it's hugely ambitious. Now, this company has rolled out what cities like DC. So DCPD uses this software. The decision that the founder made, the reason I gave you that story, the decision the founder made was he wanted to go unride alongs with the police officers. This is potentially life-threatening. And as an investor, I'm like, you sure you want to go on a ride-along at 3 a.m. in DC, in the hood, and out he was like, look, if I don't do this, then how am I going to understand what actually happens? And how am I going to understand what the officers need, what the community needs, what the relationship is like?”

   2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source

5. “God, I have a lot. I found that the best decisions are tend to be decisions where the founders truly integrate themselves into the communities that they are working with and helping. For example, I can give you stories about the calories I've already talked about, but I'll give you a new story. So there is a company called Mark forty three that is an Amplo investment. And what they do is they replace the software essentially in the back of police cars. So police, the software that they use for record managing, but also coordination between the different agencies was created. This is legacy old software, created 20 to 30 years ago. Today, officers tend to spend just as much, if not more time, in putting stuff into software as they do actually patrolling and doing things for the good of public safety. So this company was like, we want to change that. We want officers to do their jobs, and this other administrative work they shouldn't be doing. That's step one of the company. Step two is using the data they've collected to allow officers to make better decisions, which I think could be huge for not just public”

   2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source

6. “In their homes, Cuento propistas, they're called. As a result of the trip, or maybe after the trip, or I don't know what it was, but Cuba actually loosened their strictness against entrepreneurship. In other words, they made it better and more allowable to be entrepreneurs. But it was meeting people who were risking their lives for something that I and we in America take for granted, which is entrepreneurship and innovation and its potential to change lives, meeting them was an experience we'll never forget.”

   2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source

7. “Trip and what I take away from it most is my interactions with the entrepreneurs. Cuba is a country that is socialist, truly socialist. It is prior to the trip it was illegal to be an entrepreneur. It's a felony. Yet I met entrepreneurs who were committing crimes that in theory would have put them in the equivalent of jails for the rest of their life, but they wanted to do that to make a better livelihood for their family. They were sitting in the public squares where internet is two dollars for an hour in a country where the average citizen makes twenty dollars a month and they were trying to hack into the Wi-Fi to be able to access it better or they were sitting in hotel lobbies or right around the hotel to access the internet and create a better life and that was on the technology side but even many of them were opening restaurants.”

   2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source

8. “You know, I still wonder. I'm like, why did they invite me? I still wonder. I think it was because I had done a State Department often draws trips around the world for promoting diplomacy and various things. And I went on one trip to Southeast Asia to specifically Vietnam and the Philippines. And the point was to meet entrepreneurs and essentially help create ecosystems of innovation everywhere. And it was then that I got the invitation to go to Cuba. And it was a huge honor for me, right? I mean, it was the first trip that a sitting US president had taken since 1929, Calvin Coolidge. And it was supposed to be the opening of the relations. And so the president took 15 business executives along and then 35 government folks, congressmen, senators, cabinet officials. And huge honor for me. But I think the biggest, what I remember of that”

   2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source

9. “The first thing that popped into mind was Cuba. So I got to go to Cuba with President Obama in 2016. And it was a transformational trip for”

   2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source

10. “I'm in more a company like Oneconcern, which is global ambitions. Disaster prevention and relief everywhere, but initial target market, but Kashmiri founder, who was a Muslim, went to Stanford, he often says that under today's laws he wouldn't even be allowed in this country, and now he is founded one of the most competitive, it was one of the most competitive deals in the valley. So 80 to 90% for now, and then I would say fun too, or in the future. I only think the rest of the world is going to get more and more competitive. And if we're continuing to trend down the path that we're right now trending down politically, where we are making America less of a welcoming place for immigrants, then I think it's going to open up opportunity for other countries to welcome innovators.”

    2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source

11. “As an example, actually, Andella, I would classify as an African, I mean, like not an American company. It is a Delaware Corp and it is domiciled in the US, but that's truly an African company.”

    2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source

12. “I have told my investors that the best entrepreneurs can come from anywhere can be any religion, any race, any gender, anything. Today, I still believe most of the best entrepreneurs come to America or are American or live in America. So my guess is 80 to 90 percent of my companies and fund one are American companies focused on American problems, but with Global interest and ambition.”

    2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source

13. “Of this company couldn't do that. They didn't know them. They didn't know the regulators. They didn't have the clout. But the venture capitalists did. What did that do? It helped gain a broader acceptance, which directly drove growth to the company. It also helped the regulators not freak out. Because they're like, oh, there's somebody, a bunch of legitimate people talking about how this is awesome and how it could help everybody. So those sorts of 10x things for one-tenth of the time, I mean what? It was an op-ed in the New York Times and it was, you know, a couple phone calls could be transformational.”

    2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source

14. “But it's not game changing. I think the game changing stuff comes when, and this is my philosophy on the best venture capitalist, I think the best venture capitalists add ten times the value for one tenth of the time, and they do things that the founder is either not thinking about or doesn't have the bandwidth to do, and that the venture capitalists is uniquely in a position to do. So for example, that could be recruiting an independent board member that is extraordinarily useful for a company, the venture capitalist might have a network with somebody that the founder may not. That could be game-changing. Another example is potentially PR related. So I remember Mark Andreessen when he first invested, I think, in Coinbase, or maybe he was Fred Wilson. Anyway, one of these guys, they wrote a ton of articles on why Bitcoin is the future. And they talk to regulators about it and all sorts of stuff.”

    2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source

15. “Know, I think there's some general things that are just useful to remind founders, and then there are unique things. So the general things are some of the stuff you mentioned. I, just because of what I do, I see many companies and I see the comps and I see what's worked for this company, what didn't work for that company. So relaying that knowledge and saying, here's what's worked. And here's what hasn't worked. Here are some of the important metrics to track based on what has worked, customer execution costs, lifetime value. There's some standard ones, and there are some non-standard ones based on the type of company. So an undella, it might be retention rate. For a robin hood, which is free brokerage, it might be things like trades per day or growth in AUM. So there are different metrics for different companies. So that's sort of the general stuff. But you know what? The great founders. tend to know all that stuff. So reminding is health.”

    2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source

16. “That money in the future. So you're deluding yourself potentially unnecessarily. I always think it's useful to have a buffer, but I don't think it's useful to be irresponsible.”

    2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source

17. “You know, I found that even in downturns, the best companies still get funded. So I tend to caution my founders against raising too much money. I think there are a lot of reasons why it can be seductive, but there are also reasons why it could be dangerous. Seduction is obvious. You have more money, you can do more stuff. The downsides are pretty real, though. One downside is often when you have more money, you tend to spend it quicker, which is dangerous. I think that's particularly dangerous because it increases your burn, which means that you have to grow quicker. And if you don't hit your milestones exactly correctly, you could be in more trouble than you were before. The second reason is it dilutes you. If you're raising more money today, you're not going to get the same valuation as if you continue to execute as you say you will and raise.”

    2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source

18. “So, what this company does is it takes thousands of data inputs from what material is your home made of, when was it built, what time did the hurricane occur, what is the likely occupancy of your particular home at that particular time? How high is the home? Basically, every single thing you can think of, some publicly available, others private, aggregates it all and uses that artificial intelligence, as well as has run back tests on different hurricanes, to help first responders figure out what damage likely occurred. And agencies, both federal, state, local, all around the world, are already using the software or will use the software, hopefully, to help save lives, because sometimes minutes in these instances can be the difference between drowning and not.”

    2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source

19. “Concern. Amplo, my fund, is an investor in one concern. And the company is using artificial intelligence to help first responders and agencies like FEMA figure out exactly what damage occurred and where due to natural disasters. Part of the issue with a natural disaster like a hurricane Katrina, Hurricane Harvey, is lack of accessibility to first responders. Nobody has any idea what damage happened.”

    2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source

20. “So I'm very focused on education. Another thing I'm focused on is public safety software. So there are a number of ways we can improve the safety of our country using software. And we already have in some capacities and others we're woefully behind. And one example I think is a really good one is as it relates to natural disasters. So I was just in Houston. We just had Hurricane Harvey and it was catastrophic. You know, there were folks who I know who have lost their homes. And it was sad and it was unfortunate. But you also saw, by the way, the best of America and the best of humanity through that, where you saw complete strangers helping each other and opening their homes to each other. But technology can help. Now, it can't solve everything, obviously, but I'm an investor in a company called One.”

    2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source

21. “Let me caveat this with I tend to actually not be technology driven, technology specific. And the reason for this is nobody had a taxi thesis when they were investing in Uber. I did not have a brokerage thesis when I invest in Robin Hood. I generally think that we might have general ideas where the world is going, but specifically in a company innovation, if we had that idea, we would have built, we should have built it ourselves. If we could have. So I just try and find the best entrepreneurs and then get up to speed quickest on what they're building. That being said, other than the things we just talked about, I think there are a number of traditional sectors that are ripe for innovation. We already talked about education, education is ripe for innovation all over the world, and not just primary or secondary education, but retraining, vocational training. It's going to become more and more critical as some of the trends we've talked about related to unemployment occur.”

    2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source

22. “Of weight that they can support for the drone missions, and they need to expand that and they need to figure out a cost-effective way to do it. And then obviously the regulations need to adapt.”

    2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source

23. “You know, I think, yeah, I don't know. I mean, huh, I think, depends on for what use case. I think drones as a military application, underrated. I think drones as a commercial application probably fairly rated. I think it's going to be a hobbyist sort of thing. It's going to be great for photography and videography and weddings will be done via drones. So I think it's going to be interesting. I think where it could be underrated is when you think about drones as a form of transportation. If you think about like Amazon and what they've talked about with in the future, they're not going to fidex you something. They're going to have a drone deliver it right to your doorstep. That's kind of cool. And I actually think that world is not that far away. The biggest issue with the companies that I've seen that are drone companies is not that ambition. The biggest issue right now is the cost and the payload. They have an amount”

    2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source

24. “I think this is underrated. I think this is going to be massive. Artificial intelligence is going to impact everything. It already is. And why wouldn't it? At its core, artificial intelligence is essentially using data to make decisions. And as we are increasing the amount of data available and increasing the power of computing and increasing the power of the algorithms that we build, why wouldn't we apply that to every facet of our life? So I think this is underrated. I think there are going to be big companies that are built on this. There already are many, many companies that are massive that are essentially purely AI companies. So I think it's underrated.”

    2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source

25. “I think I'm contrary on this. I think it's overrated. I mean, I used to think it was underrated, but now I think it's overrated. People say, well, nobody's heard about it yet. Actually, I'm pretty sure everybody's heard about it yet. When governments around the world are taking action on it and every news channel is covering it, I'm pretty sure everybody's heard about it. And so, and you have to assume people are intelligent, and you have to assume that the price is all priced in. So I don't know. I think it's overrated.”

    2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source

26. “I think overrated for the general term, everybody is like, oh, augment reality this, augment reality that, VR this, VR that. I mean, great. It's a new technology. I think it'll have very particular use cases that are interesting. For example, gaming, it might be fascinating in transformational. You know, a bunch of football teams now use virtual reality, for example, to train those specific use cases interesting. But to focus a fund on that or to just invest in technologies like that, I think the technology might be greater than the actual solutions out there.”

    2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source

27. “And people say that that platform could be almost as valuable as the iOS platform or the Netflix platform or a television platform where you have an audience for a captive amount of time every day. And how are you going to monetize that? So my guess is there are going to be technologies all around there that are going to be venture-backed. And that's what I'm excited to continue looking for.”

    2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source

28. “Google Maps does not have millimeter level precision. So mapping companies, for example, are going to be huge and critical for the driverless car. And that's something in theory you could do on a venture investment. Another are the edge cases that I mentioned, using artificial intelligence to model edge cases and to figure out reactions to those edge cases. That, I think, is going to be really interesting. I think the third might be in-vehicle software. This might be a step, maybe not today, but if I'm sort of looking out a couple years, what is the ecosystem that's going to be built now in the vehicle? The vehicle could be completely reshaped. It might not look the same way that a vehicle looks today. There's no reason for it to. If you don't need a driver. But how is that platform going to change?”

    2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source

29. “So here's the problem with investing in the driverless car as a venture capitalist. Much of the innovation is hardware innovation, and that takes many millions, maybe billions of dollars, which most venture capitalists can't do, nor should they take that type of risk. So where it's really interesting is a software layer. And what I'm most excited by in the companies that I'm tracking are companies that are doing things that the hardware will require. For example, mapping right now, things like Google Maps are really good for calling an Uber. And you know I'm roughly here. They're not good enough for things like the driverless car. You need to have millimeter level precision for the driverless car.”

    2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source

30. “And maybe even cause a migration back to the suburbs. Because today people often live near each other and there's been this urban migration, I think, because of jobs, I think, to remove commutes, I think it's more exciting, but the moment commutes go away, it opens up the world to everybody. So those are going to be some of the most transformational impacts.”

    2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source

31. “I think they're a bunch. I mean, I think the driverless car, by the way, is going to happen. It's not a matter of if but when. So here are the biggest side effects. I think the most important is preservation of life. You immediately remove a lot of, drunk driving in theory wouldn't exist anymore. So there are going to be a lot of lives saved to the driverless car, in theory, if it works. I think a second benefit is going to be productivity gain. Think about the amount of time Americans and people around the world spend commuting. I don't have the statistics in front of me, but if I were to guess, I believe I had read something that the average American spends more than 30 minutes a day commuting, and it's probably even more than that. That, in theory, could become productivity time instead of commuting time. That would have a massive economic impact on the world. I think the third thing is it's going to reshape how cities are created and planned for.”

    2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source

32. “So, in a country where we're trying to create more jobs, not remove jobs, this is going to be the polarizing issue. So I think that is going to be the main challenge. And historically, innovators have not done a great job interfacing with the government. There's been this political apathy that's occurred in Silicon Valley where it's sort of an us versus them mentality, which I think is the wrong approach. If you think about it, the government actually created a number of technologies that Silicon Valley is built upon. The internet was created by DARPA, GPS was created by DARPA, et cetera. And they're going to need to engage really closely and work out how this is going to be a win-win for everybody, and not just for the tech companies that produce the technology.”

    2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source

33. “Taxi driving is a number one job in America. Think more than three million people, more than 1% of our population is a driver of some sort. In theory, all of that could be gone. That is a huge number of people. I don't think we've ever had an instance in our country, maybe in the world, where such a rapid transformation and dislocation of employment is going to happen.”

    2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source

34. “The Google car driving everywhere and hoping that in the millions and maybe tens and hundreds of millions of miles that it logs, it will come across some of these edge cases. But that's going to be the big barrier. So that's one. I think the second is insurance. We haven't really solved the insurance problem. Who becomes liable in the case of catastrophe? Is it the software? Is it the hardware? Is it the government? Is it the owner of the car? I mean, who? And we haven't solved that. And then the third is obviously the regulatory. This could happen really slowly. It could happen really fast. I'm not sure. My instinct is to say it's going to happen slowly. I think the reason it's going to happen slowly is not necessarily because of the fact that the technology doesn't work. I actually think it's going to happen slowly because of the political ramifications of allowing the driverless car. If you think about it, car driving, truck driving, bus driving,”

    2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source

35. “How will the car perform in instances where there is two feet of water or there's a blizzard or a kid runs across the street or basically things that haven't been tested unknown unknowns and with a human you would think whether humans do it well or not and the argument is probably they don't do it well with humans you know that in theory some intelligence will dictate what occurs now of course automotive debts are one of the leading causes of death in this country so maybe humans are not good at this at all and shouldn't be doing it but in theory you know that a human can make that decision whereas we don't yet know what the driverless car will do so that needs to be solved and there are companies working on that problem by both modeling edge cases for the car and then programming how it should react to”

    2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source

36. “So, I think the driverless car could be potentially the most important technology transformation of our lifetime. If you think about it 100 years ago, we moved from horses to cars. A hundred years later, today, it's going to be cars to driverless. And let's start with where we are, and then we can talk about when I think it's going to be available. So where we are. We are in a place where many of the big tech companies, whether it's Apple or Google or Uber, some of these folks, as well as the traditional OEMs, they have built the technology. It mostly works. However, it is not at a price point yet. That is affordable. And they have not yet solved for edge cases. And edge cases are what are going to make or break the driverless car. For example,”

    2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source

37. “And she is my first board partner and she is joining the board of Andela. Andela wanted her because of her wealth of and diversity of networks. She knows folks in politics, but she knows Because that's when you can, from a node perspective, that's when your node is like a circle as opposed to a line only leading towards one area. And those are the types of folks I try and surround myself with.”

    2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source

38. “Firm is the former Prime Minister of Australia, a woman named Julia Gillard, first and only female Prime Minister of Australia, an amazing woman. She gave a very famous speech on the House of Parliament on misogyny.”

    2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source

39. “I expect nothing, and I think the flip side is nobody expects anything, but I think if people think networking occurs at conferences, cocktail parties or whatever, it's wrong. I don't go to any of that. I'll occasionally host maybe one or two dinners a year where I bring together my closest friends, and that ends up being more valuable than any party or any conference or anything that I could have gone to. And I think the other thing that I think is important to note, though, when it comes to networks, is the most powerful networks are the ones that are diverse. People think the strongest networks are when I, for example, know all entrepreneurs or when a politician knows all other politicians or when a CEO knows all other CEOs. That's useful, but the most important, most valuable networks are the ones that are cross-sector, cross-discipline. For example, one of the people who is going to be a board partner for”

    2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source

40. “It's those friendly relationships where I trust people and they trust me that have turned into my most important professional relationships”

    2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source

41. “I remember doing something for his kids, and we were just friends. We had no expectation of anything. And then when I go out to raise my fund, I tell them about it. And he's like, oh, I know a guy. And he picks up the phone, calls a guy, that guy ends up putting one of my biggest checks. No expectation of anything, but that's how it happens. And I think even professionally, when I look at a company like Andela, I got to know Jeremy through a number of different ways. When I was at Bessemer, he had founded to you, which was one of the companies. And then he and I were both on the Forbes 30 list the same year. And then we got to know each other through that. We were really friends for probably three or four years. And then he said, hey, by the way, I'm about to start a company. We started chatting, and I said, look, I don't really know what you're doing. This Africa thing sounds kind of crazy, but I'll invest because I believe in you.”

    2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source

42. “I think networking is really important. Perhaps the most important thing one can do. However, I think the definition of networking, the stigma that often is associated with it is not what I mean. When I think of networking, the most powerful networking is when you have genuine warm relationships with a small group of people. That is networking. Networking is building and developing existing relationships. And through existing warm relationships that are mutual with no, by the way, often business expectation at all, that's when the best business networks are developed. So for example, one of the people who is involved with my fund was somebody who I got to know in a personal capacity. He and I became very good friends. I got to know his family.”

    2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source

43. “But to raise that amount of money with no diligence by anybody means you're either going to get really lucky or you're going to lose your shirt. Those are really the two outcomes here. And as an investor, I would much rather invest than take gambles and all this stuff feels like a gamble right now.”

    2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source

44. “Of all the companies I've seen. So I feel like the hype has been there for a period of time. And maybe it will still come about. But when then new types of coin are starting to be created that are then being auctioned off with very little information about them, I start to get really worried. So I had the opportunity to participate in an ICO for a file coin, which protocol labs, and it was, I think, one of the biggest ICOs that has been done so far.”

    2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source

45. “And then I decided not to do it because of the regulatory lack of clarity on ICOs. I think it's completely crazy. I think it is completely ridiculous. It is taking advantage. And by the way, I am somebody who was a huge bull on Bitcoin like four or five years ago. I bought Bitcoin at 100. I sold it 1,000. I thought I was a genius. I wrote all these articles on why the blockchain is the next internet. And then I saw nothing for four years, where it continued to be a technology in search of a solution. Everybody talks about remittances and all these different smart contracts. Being able to conduct real estate transactions on using the digital ledger. And like people talk about all these potential use cases, microtransactions. Nobody's actually built a killer app yet. And maybe I just don't know.”

    2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source

46. “For those who haven't lost all their money yet to some of this, I think, look, it's funny you bring that up. When I first left and was going to start this venture fund, one of my buddies used to run a blockchain company and a Bitcoin company that then pivoted into a blockchain company. And he said, Sheil, I'm going to raise your fund on an ICO. We could raise $250 million. Forget $100. We could raise $250 in like six minutes. And I said, wow, this sounds awesome.”

    2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source

47. “Firms at valuations between 20 and 30 pre launch and no customers, nothing, but 20 to 30. And to top it all off, he was even getting millions of dollars worth of interest at uncapped notes, which basically means you're giving free money because you're saying set the price later. Most notes, convertible notes, have caps. Caps are what the valuation would convert into. It's a way to do a seed investment without actually having to price the seed investment. Many founders use usually opt for this because it's cheaper on legal fees and you can punt the valuation conversation. But the caps often signify the valuation. But when a note is uncapped, the investor is taking all the risk and not really getting rewarded.”

    2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source

48. “Yeah, let me give you an example of a company I spoke to yesterday. So typically a seed company in most normal market environments, seed companies pre-launch, let's say pre-launch seed company with normal founder. In other words, not the next Mark Zuckerberg. Not Mark Zuckerberg leads Facebook to start a company, but normal founder. That valuation is single digits. It should be $3 million, $4 million, $5 million, six million. Who knows? But single digits. In bull markets, in like super high bull markets, somehow those valuations are getting done in the double digits, like twelve, fourteen, fifteen. But you know a market is frothy when yesterday I had a call with an entrepreneur who has had some success, so therefore in theory he could raise in probably the low double digits called the tens to fifteen pre-launch. He was getting offers from high quality.”

    2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source

49. “Making their way in there, and those are the new guys, and that's, you know, the social capitals, the thrives. Like, the newer guys will continue to push some of the older guys out. I think today is not a great time, frankly, to be a venture capitalist. And I've told my LPs this. I'm pretty honest with them. I say, look, I have struggled to make great investments over the last two years. I think I made one investment into one new investment in 2017, twenty sixteen, I don't think I made any new investments other than a couple small seed investments, large checks that I would classify Series A or beyond, large proper venture capital checks. I don't think I made any. 2015, I did Robinhood, which was a big check and a couple others. So the valuation environment on a private scale is frothy right now.”

    2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source

50. “Said, I think that if you look at who is in those top 10 or top 20 that's constantly changing, there are a couple folks who are always or who have been there for the last, call it five to seven years consistently. Sequoia, benchmark, et cetera. And there are a couple that are...”

    2018-01-02 · Invest Like the Best · Sheel Tyle - The Future of Venture Capital - [Invest Like the Best, EP.70] · IDENTIFIED FROM THE TRANSCRIPT · source