20 VC 003 Bob Ghoorah on Startups, The Pitch and Uber

Abstract
Summary Notes

Abstract

In the 20 Minutes VC podcast, host Harry Stebbing interviews Bob Gura, Managing Director at Columbus Nova Technology Partners, who shares his journey from corporate lawyer to VC, emphasizing the importance of being a company builder and the role of pattern recognition in investing. Gura, who worked closely with tech luminaries like Mark Andreessen and Ben Horowitz, believes that a big market and an executable team are crucial for startup success. He also discusses the potential of Uber and the tech valuation bubble, while predicting healthcare as the sector for the first trillion-dollar company. Gura's book recommendations include "The Power of Habit" and "Zero to One," and he advises aspiring VCs to be persistent and leverage their networks.

Summary Notes

Introduction to Bob Gura

  • Bob Gura is the managing director at Columbus Nova Technology Partners.
  • He has a 15-year history in building technology companies.
  • Bob was an early employee and investor in companies such as Loudcloud, Opswear, and Ning.
  • His investment portfolio includes Rock Melt, live loop, kazing, rhapsody, Rabbit opsmatic, and 42 floors.

"Bob is currently managing director at Columbus Nova Technology Partners, and over the past 15 years, Bob has really helped build some of the world's best technology companies."

The quote introduces Bob Gura as a significant figure in the technology sector, highlighting his role and experience in building top technology companies.

  • Bob started his career as a corporate lawyer in the mid-1990s.
  • He worked with entrepreneurs including Mark Andreessen and Ben Horowitz.
  • Bob's role evolved over 12 years, encompassing corporate activities, capital raising, mergers, acquisitions, and legal work.
  • His experience as corporate counsel provided a comprehensive view of business operations.

"So yeah, I started out my career originally as a corporate lawyer and worked at a couple of different law firms in the mid-nineties. And in the late nineties, I teamed up with a group of entrepreneurs, including Mark Andreessen and Ben Horowitz."

The quote explains Bob's professional beginnings and his pivot from law to collaborating with renowned entrepreneurs, setting the stage for his entry into venture capital.

The Path to Venture Capital

  • Bob wore many hats over his tenure at three companies, with legal being one aspect.
  • He considers himself a company builder, which he believes is excellent training for an investor.
  • Bob's operational experience and pattern recognition across disciplines drove him to venture capital.
  • In January 2012, he joined Columbus Nova and helped create a differentiated fund.

"But really I'm a company builder and that to me is just phenomenal training to be an investor because you've sort of been there, done that from an operational point of view and over time you develop a significant amount of pattern recognition in multiple disciplines."

This quote emphasizes Bob's broad experience and the value he places on being a company builder as preparation for a successful venture capital career.

Characteristics of Successful Entrepreneurs

  • Bob believes the best entrepreneurs solve problems and create businesses around those solutions.
  • Personal experience and passion for the problem are crucial for entrepreneurial success.

"Yeah, I think so. I mean, at the end of the day, the very best entrepreneurs, in my view, are the ones that are solving a problem and creating a business around that solution and have personal experience and passion for that problem."

Bob argues that solving real-world problems and having a personal connection to the issue are key traits of successful entrepreneurs.

Importance of Success

  • The 20 minutes VC podcast focuses on discussing success because it is deemed important.

"Success is important"

This brief quote encapsulates the podcast's emphasis on the theme of success within the venture capital and entrepreneurial landscape.

Perception of Success

  • Travis Kalanick of Uber is viewed as a quintessential disruptor who built an incredible business in a short time.
  • Harry Sebbing acknowledges Bob Gura's respect for Travis Kalanick and Uber's achievements.

"I mean, there's. If I had to pick one, I'd say Travis Kalanick at Uber." "He's kind of the quintessential disruptor. He has built an incredible business in a very relatively short period of time. Call it five."

Bob Gura highlights Travis Kalanick as a paradigm of success due to his disruptive impact on the transportation industry and rapid business growth.

Future of Uber

  • Discussion on Uber's potential expansion beyond taxi services to cargo transport and driverless cars.
  • Bob Gura believes Uber will stay core to its original mission but also sees opportunities in adjacent market spaces.
  • Uber is seen as a core logistics and data company with the ability to apply these strengths to various industries.

"No, absolutely. If you look at sort of comparable companies over time, they'll stay core to sort of what got them there." "I think that there's absolutely an opportunity for that company to get into adjacent market spaces."

Bob Gura is optimistic about Uber's future, suggesting it will maintain its foundational business while also exploring new opportunities in logistics and data application.

Google Glass and Innovation

  • Bob Gura has tried Google Glass and believes it's still early in development.
  • The strength of the developer community is acknowledged, and the potential of Google Glass as a viable platform is discussed.
  • Both Harry Sebbing and Bob Gura agree that technological innovations like Google Glass require time to mature.

"I think it's still a little early." "I think the developer community is strong and I think it's a really viable platform."

Bob Gura provides his impression of Google Glass, indicating it's in early stages but has strong support from developers and potential for growth.

Investment Strategy

  • Bob Gura's investment strategy includes looking for startups with access to a big market and a team capable of execution.
  • The importance of a leadership team's ability to execute ideas and achieve scale is emphasized.

"First is a really big market." "The second is a team that can execute."

Bob Gura outlines the primary must-haves for his investment strategy: a large market potential and a competent execution team.

Market Approach

  • Bob Gura discusses the relationship between macro and micro market strategies.
  • He agrees with Peter Thiel on the importance of starting with a focused core strategy and proving success in a market segment before scaling.

"Well, I think that the macro kind of informs the micro, but at the end of the day, I think I agree with Peter that you got to start somewhere." "And it's important, again, to have a core strategy and focus."

Bob Gura concurs with Peter Thiel's philosophy on the importance of a focused starting point in business strategy, with macro insights guiding the micro execution.

Entrepreneurial Pitches

  • Bob Gura shares his enthusiasm for the entrepreneurial pitches he encounters in Silicon Valley.
  • He recalls a recent pitch from experts in aviation who have built multibillion-dollar businesses and are innovating with software.

"Here in Silicon Valley, we see incredible entrepreneurs every single day and pitches that blow." "We had a team in yesterday, actually, that is sort of the preeminent experts that have built multibillion dollar businesses in aviation."

Bob Gura expresses excitement about the high caliber of entrepreneurial pitches in Silicon Valley, specifically mentioning a notable pitch from aviation experts.

Entrepreneurial Expertise in Aviation

  • Entrepreneurs in aviation bring deep expertise and understanding of the market.
  • Their knowledge can be impressive and educational for investors.
  • The depth of experience and market understanding is often the factor that impresses investors.

"It's the depth of experience and understanding expertise in the market."

This quote emphasizes the importance of an entrepreneur's market expertise and how it can significantly impact an investor's perception.

Silicon Valley's Ecosystem

  • Silicon Valley provides a comprehensive ecosystem for tech startups within a close radius.
  • The ecosystem includes talent, investors, partners, customers, and distribution.
  • Despite its advantages, Silicon Valley's importance is diminishing due to the global reach of the internet and mobile technology.
  • Cloud-based software can be run from anywhere, allowing teams to be globally distributed.

"One of the unique advantages the valley has is that the ecosystem is so developed and so broad, you've basically got everything that you need to build a great technology company, all within a 25 miles radius."

The quote highlights the benefits of Silicon Valley's dense and developed ecosystem for tech startups, suggesting it has all the necessary resources in close proximity.

  • "The Power of Habit" by Charles Duhigg is recommended for its insights into habits in individuals and businesses.
  • "Zero to One" by Peter Thiel is praised for Thiel's unconventional thinking and his ability to foresee market trends.
  • Thiel's book is also noted for its contrarian views on competition and monopolies.

"I'm going to go with two books. One is the power of habit by Charles Duhigg... And then I recently read zero to one by Peter Thiel and thought it."

This quote showcases two books that the speaker found particularly impactful for entrepreneurs, highlighting their relevance to business and personal development.

Peter Thiel's Unconventional Views

  • Peter Thiel's book "Zero to One" presents unconventional views on competition and monopolies.
  • Thiel's perspective on monopolies being beneficial contrasts with the traditional view that competition is good for the economy.
  • Entrepreneurs and investors are advised to consider contrarian viewpoints to avoid potential pitfalls in business.

"Some of his positions are controversial... monopolies are what ultimately, you know, Google is a."

This quote points to the controversial nature of Thiel's opinions, particularly regarding the value of monopolies in the tech industry, and suggests that such perspectives can offer valuable insights.

Advice for Aspiring Venture Capitalists

  • Passion, drive, and other characteristics are essential for a career in venture capital.
  • The transcript cuts off before the full advice is given.

"Know, the best piece of advice that I ever got w"

This incomplete quote suggests that the speaker was about to share valuable advice for those looking to enter the venture capital industry, but the transcript ends before the advice is provided.

Entrepreneurship and Making It Happen

  • Success in business often comes from a proactive and determined mindset.
  • There's no set recipe for becoming an investor or entrepreneur.
  • The advice "make it happen" emphasizes taking action and being persistent.

And his response literally was, make it happen.

This quote underscores the importance of taking initiative and creating your own opportunities in business.

Dealing with Failure and Persistence

  • Failure is an expected aspect of the journey in venture capital and entrepreneurship.
  • Maintaining focus and drive is crucial to overcome obstacles.
  • Persistence and leveraging one's network are key strategies for success.

Failure is a part of the game, but you got to maintain your focus and your drive, and you just got to go after it.

Bob Gura highlights the necessity of resilience and the relentless pursuit of goals despite setbacks.

Venture Capital and Job Seeking

  • The process of seeking opportunities in venture capital should be strategic and targeted.
  • Networking and perseverance are essential when looking for a job in this field.

But at the end of the day, you need to be targeted. You need to work your network, et cetera, et cetera, and don't give up.

Bob Gura advises on the importance of a focused approach and the value of networking in the venture capital job search.

Tech Bubble and Valuations

  • There's a widespread belief that there is a bubble in tech valuations, especially at the late stage.
  • Companies like Uber have high valuations that they may grow into over time.
  • The rapid scale of technology businesses and the impact of mobile technology are changing market dynamics.

Well, there is definitely, in my opinion, humble opinion, a bubble in valuations.

Bob Gura expresses his view that there is currently an inflated sense of worth in the tech industry, particularly regarding late-stage company valuations.

The Future of Tech and Healthcare

  • The next decade is expected to be significant for technology and its impact on various sectors.
  • Healthcare is predicted to be a leading field, with the potential for a company to reach a trillion-dollar valuation.
  • Governments prioritize healthcare, which drives innovation and investment in the sector.

I think it's going to be in healthcare.

Bob Gura predicts healthcare will be the sector to produce the first trillion-dollar company due to the universal need for health solutions and government support.

Conclusion and Resources

  • The interview concludes with an expression of gratitude and the anticipation of future discussions.
  • Listeners are directed to a website for additional resources mentioned in the show.

I hope to have you on the show again soon.

Harry Sebbing closes the interview with Bob Gura, expressing appreciation for the insights shared and looking forward to future conversations.

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