Secrets of Sand Hill Road - Venture Capital And How To Get It w/ Scott Kupor

Female founders are statistically less likely to receive investments from venture capitalists. While there is a growing diversity of investments, it’s still going to take substantial time before industry changes take place. Scott Kupor, managing partner at Andreessen Horowitz and author of Secrets of Sand Hill Road, joins me to talk about venture capitalism and the changing face of the investment industry.

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Scott has been with Andreessen Horowitz since it began in 2009. He’s now working with $10 billion investments to help start-ups get their feet off the ground. In this episode, Scott’s sharing how he makes investment decisions, if there are any investments he regrets or missed out on, and how you can make your business more appealing to potential investors.

First, Scott chats about why women-led businesses are less likely to receive investment support. But he is hopeful for the future. Companies like Andreessen Horowitz are making positive changes for diverse investments.

Scott gives us the inside information on how businesses get to be in those top percentages of businesses that get funding from venture capitalists. He explains what advice you should get from VCs, investors, and business advisors before you do your first pitch. Many VCs are open to providing information and feedback before you pitch, it’s all about how you ask.

There are several big market hubs in the United States currently, some of the most well-known being Silicon Valley and Austin, Texas. But new markets are in the process of being built up. Scott explains why this is taking time.

What makes these new markets work? And how does remote work fit into the picture? New business hubs are faced with challenges existing markets don’t have, such as the availability of experienced people at senior levels of management.

Have you been thinking of pitching for investors? Who can you approach today to ask for advice for your potential pitch? Do you have an idea for the next Airbnb?

In This Episode:

  • Why women-led businesses are less likely to receive investment support

  • What does the future of investment look like for female founders

  • How does a business get to be part of the percentage of businesses that get funding

  • How is the future of venture capitalism changing to be more diverse

  • What advice you should get before and after your first investment pitch

  • Why it’s taking time for new markets to build up that rival or equal Silicon Valley

  • What you need to make new markets work

  • What challenges do new markets face that established markets don’t experience

  • How important timing is when you have an innovative business idea

 

Quotes:

“80% of funding in the United States goes to male founders, 2% goes to female founders, and 18% goes to hybrid male/female teams.” (4:17)

“In many cases, to be successful as a founder, you do have to willfully suspend disbelief and have an outlook, in terms of optimism and your ability to approach the future, that is unconventional and different from how other people might think about what is likely to succeed.” (16:47)

“I think most companies tend to be remote a little bit more when they’re at a stage that’s more relevant when they get a little more mature, rather than when they’re in a start-up phase.” (45:30)