Cracking the AI and consumer code with early Zoom-backer Maven Ventures | Equity Podcast

Maven Ventures: Investing in Consumer Tech

• Sarah Dishpande joined Maven Ventures as its first employee in 2014 and is currently a General Partner.
• Maven Ventures has a strong track record, with 16% of its portfolio companies reaching a minimum $500 million exit valuation, which is 10 times the industry average.
• The firm has a concentrated investment approach, focusing on quality over quantity. They have made just over 60 investments in the last decade, resulting in multiple $500 million+ exits and many companies valued at $500 million or more.
• Maven Ventures believes that their focus on consumer tech, even when other firms are pivoting away, provides them with more opportunities and less competition.
• Maven Ventures sees consumer tech as cyclical, with periods of high interest followed by periods of disinterest. They believe that this makes it a good time to invest in consumer tech when others are not, as there is less competition and noise.
• The firm's definition of consumer tech has evolved over time, moving beyond mobile apps to include companies like Zoom, which they consider a consumer company despite its appeal to enterprise investors.
• Maven Ventures invests in a diverse range of business models within consumer tech, including digital health, which they have been investing in since 2015. They recognize that the healthcare ecosystem is not purely consumer-driven and requires investment in B2B models as well.
• The firm's investment thesis has evolved over the years, moving from early-stage mobility companies like Cruise, Embark, and May Mobility to digital health companies like Hello Heart.
• Maven Ventures believes that consumer tech is often misunderstood, as it encompasses a wide range of businesses beyond consumer goods. They highlight digital health as an example, emphasizing its importance in improving people's lives and its potential for significant impact.
• The speaker believes that health is often overlooked in the consumer space, and that there is a significant opportunity for technology to improve health outcomes.
• Maven Ventures invests in technology companies that address consumer behavior and trends, with a focus on improving people's lives.
• They evaluate digital health companies based on their potential to improve health outcomes, and look for companies with innovative technology or insights into consumer behavior.
• The speaker highlights examples of Maven Ventures' investments in the health space, including Carrot Fertility, Hello Heart, and Daybreak Health.

AI Investments

• Seed rounds for AI companies are becoming larger, with some reaching $6-8 million, but there are still smaller pre-seed rounds in the sub-$1 million range.
• The speaker believes that companies like Headway, Maven Clinic, and Work at Health are pioneers in the health tech space.
• While Maven Ventures has invested in the AV space in the past, they are less likely to invest now due to the presence of established players.
• The speaker remains optimistic about the AV space, citing companies like Waymo as examples of continued success.
• Maven Ventures has been investing in AI as an underlying technology for over a decade, starting with companies like Cruise, which utilized machine learning for autonomous vehicles.
• The firm's focus shifted towards consumer-oriented AI applications after the emergence of ChatGPT in 2022, which demonstrated the potential for AI to reach consumers and solve problems.
• Maven Ventures believes that the peak of the AI frenzy was around 12 months ago, and the market has since settled into a more steady state.
• While valuations can still be inflated, there is more consideration and diligence being done in AI investments today.
• Maven Ventures looks for AI companies that solve a specific problem for consumers, have a unique consumer insight, and demonstrate a clear need for their product or service.
• Maven Ventures is looking for companies with a strong vision, a technical product-oriented team, and the ability to deliver on that vision in a growing market.
• Deal flow has been consistent and relatively high in 2024, but there is still value in the noise of the startup ecosystem.
• Maven Ventures believes that AI will improve consumer lives in areas like personalized financial management, healthcare, and social media.
• They are particularly interested in companies that make technology accessible to everyone, such as those offering affordable access to healthcare or financial services.
• Maven Ventures is an investor in Perplexity, which they see as an example of a truly magical consumer experience that provides answers and solutions.
• They acknowledge the controversy surrounding AI, particularly concerns about plagiarism and content theft, but believe that the rules are still being written and that companies like Perplexity are trying to create positive change.
• The speaker believes that the rapid development of AI technology will continue to cause disruption and uncertainty in the market, creating a "roller coaster" experience for companies.
• They emphasize the importance of companies focusing on ethical considerations and prioritizing the end consumer's needs.
• The speaker acknowledges the potential threat posed by companies like OpenAI, which could quickly disrupt the market with new technologies.
• They suggest that startups can overcome this challenge by focusing on specific problems and developing unique insights.
• The speaker believes that the current environment is ideal for starting consumer-focused companies, as they have the potential to become much larger and more impactful than previously imagined.
• They express hope that Maven Ventures will continue to partner with founders of these companies and contribute to their success.

"Equity" Podcast

• The podcast, "Equity," is produced by Solo Consolo.
• Kell Bryce Durban is the editor of the podcast.
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