UVC: Karl Alomar from M13 on the significance of providing support to portfolio companies when there are indications of a crisis, preference for investing in infrastructure layer startups & why VCs should think like an entrepreneur
In this episode you will learn:
- What are some of the success stories, challenges, and crisis that Karl faced while building multiple startups, and how did he navigate them?
- According to Karl, why should a VC think like an entrepreneur, and how can this approach benefit startups?
- Does Karl believe that prior experience as an entrepreneur is ideal for someone looking to become a VC, and why?
- How is M13's propulsion platform different from the platform model of other VC funds, and how does it help startups?
- Why is it important for VCs to support their portfolio companies when there are leading indicators of a crisis?
- Why is building trust with founders important for a VC to ensure that they are taken seriously and not create friction?
- What is M13's investment thesis, and why do they prefer to back startups that are building infrastructure layers?
- What are some common mistakes made by the teams and founders of infrastructure layer startups, and how can they be avoided?
- What does Karl mean when he says, "The value I seek can only be realized at scale," and what kind of startups is he looking for?
- How should startups strategize their fundraising and operations during an economic downturn like the one we are experiencing now?
As DigitalOcean's COO, Karl built the business from first product to >500 employees & $250M ARR over six years and prepared it for its eventual IPO (NYSE: DOCN). Having previously managed and exited two startups over a 20 year operating career, Karl is now M13’s managing partner and oversees its day-to-day operations.