20VC Forerunner's Kirsten Green on The Biggest Challenges Scaling Both Teams and AUM, What Truly is High Performance in Fund Management & Why Parenting and Relationships are an Enabler To Your Best Work

Abstract
Summary Notes

Abstract

In this episode of 20vc, Harry Stebbings reconnects with Kirsten Green, founder and managing partner of Forerunner Ventures, to discuss her journey and insights in venture capital. Green, who has led Forerunner in raising over $2 billion and investing in over 100 companies, shares her experiences and the importance of being authentic, curious, and empathetic in business. She emphasizes the significance of relationships, both personal and professional, in shaping one's career and the value of learning from failures. Green also touches on the evolving venture landscape, the challenges of scaling a VC firm while maintaining quality, and the balancing act between work and personal life. The conversation highlights her unique approach to investing, her views on giving constructive feedback, and the lessons learned from both successes and setbacks.

Summary Notes

Introduction to Kirsten Green and Forerunner Ventures

  • Kirsten Green is the founder and managing partner of Forerunner Ventures.
  • Forerunner Ventures is known for investing at the intersection of innovation and culture.
  • Kirsten has raised over $2 billion and invested in more than 100 companies.
  • She serves on the board of Glossier, Ritual, Fair, Hims & Hers, and Curated.
  • Kirsten has invested in successful companies like Chime, Jet, Warby Parker, and Hotel Tonight.
  • She has been named in Time's 100 Most Influential People.

"Now, our guest today was last on the show five years ago, since they've had more hit investments than I've done podcast episodes, and they're also one of the most kind and genuine people in this business. I'm so proud to welcome back to Kirsten Green, founder and managing partner of Forerunner Ventures, one of the leading firms of the last decade investing at the intersection of innovation and culture."

This quote introduces Kirsten Green as a successful and influential figure in the venture capital industry, highlighting her achievements and her return to the podcast after five years.

Acknowledgments and Partnerships

  • The episode is a collaborative effort, with thanks to Eddie, Yuri Kim, Andy Dunn, Anu at YC, Jeremy Liu, Alfred Lynn, and others for their contributions.
  • Harvard Management Company (HMC) is praised for being a partner to investors and entrepreneurs, managing Harvard University's endowment, and being early institutional investors in venture capital.
  • Mercury is recognized for providing banking services tailored to startups, including FDIC-insured accounts and integrations with various business tools.
  • OpenPhone is commended for its business phone system that helps maintain work-life balance and organize work communications.

"A huge thank you to Eddie. It curated. Yuri Kim Andy Dunn Anu at YC Jeremy Liu Alfred Lynn my word, we do do our references and more, and it really did make such a difference. So huge thank you for that."

This quote expresses gratitude to the individuals who contributed to the episode, emphasizing the collective effort behind the podcast.

Kirsten Green's Personal Journey and Philosophy

  • Kirsten shares her journey to venture capital, which involved self-reflection and the pursuit of a career that aligns with her values and strengths.
  • She values the mix of qualitative and quantitative thinking, the opportunity to be part of change and progress, and the importance of people and relationships in business.

"Ultimately became clear that early stage investing really offered the things that I valued, which was operating at this intersection of qualitative and quantitative thinking."

This quote encapsulates Kirsten's realization that early-stage investing aligns with her personal values and strengths, merging analytical and creative thinking.

Creativity in Venture Capital

  • Kirsten believes that creativity in investing is closely tied to curiosity, which can lead to exciting journeys and discoveries.
  • She emphasizes the importance of curiosity in venture capital and enjoys learning from and engaging with founders.

"Investing creativity is pretty closely tied to curiosity. Curiosity is one of the most valuable characteristics that has the potential to lead you on fantastic journeys."

Kirsten links creativity with curiosity, suggesting that a curious mindset is essential for success and enjoyment in the venture capital industry.

Reflections on Personal History and Career Choices

  • Kirsten discusses how her drive for independence and freedom to make choices stems from her childhood.
  • She shares a pivotal moment in her career when her position was eliminated, which fueled her entrepreneurial spirit and desire for independence.
  • Kirsten had a near-death experience as a teenager, which influences her daily life and motivates her to grow and make the most of life's learning opportunities.

"My entrepreneurial bug was kind of rooted in that experience of wanting to have more of a role in my own destiny."

This quote reflects on Kirsten's motivation to become an entrepreneur, driven by a desire for self-determination and learning from personal experiences.

Contemplating Regret and Making the Most of Every Moment

  • Kirsten and Harry discuss the concept of regret and the importance of making choices that maximize the benefits of each moment.
  • Kirsten advises appreciating the outcomes of the choices made and learning from the experiences gained.

"Life is a series of choices. There are a multitude of doors that get opened, and some ways for every door that gets opened, others get closed."

Kirsten's perspective on life's choices suggests that while some opportunities are lost, others are gained, and it is important to value the experiences that come from the paths chosen.

Appreciation of Opportunities and Choices

  • Every experience is a building block for future journeys and chapters.
  • Importance of appreciating opportunities and focusing on what you gain, not what you miss.
  • Acknowledgement that life involves making choices and the inability to do everything.
  • Emphasis on leaning into choices made and maximizing their potential.
  • Encouragement to spend less time dwelling on unchangeable past decisions.

"And I just think it's important to appreciate what that opportunity that created for you."

This quote emphasizes the importance of recognizing and valuing the opportunities that life presents, as they contribute to personal growth and future success.

"And we can't do everything. That's just the reality of life."

This quote acknowledges the reality that life requires making choices and that it is impossible to engage in every potential activity or opportunity.

Founder's Fanaticism and Adding Value

  • Founders have a fanaticism towards working with Kirsten Green due to her hands-on approach and significant impact on companies.
  • Kirsten Green is known for truly adding value beyond superficial founder-friendly gestures.
  • The value she adds is described as moving the needle for companies.

"Not in the founder friendly bullshit way, but like, really move the needle for the companies."

This quote from Eddie highlights Kirsten Green's genuine and effective approach to adding value to companies, distinguishing her from others who may only superficially claim to be founder-friendly.

The Chip on the Shoulder

  • Kirsten Green acknowledges having a chip on her shoulder, which drives her to prove herself.
  • She faced skepticism about her path into venture capital due to her unconventional background.
  • Green's early challenges included not having worked in venture capital or tech, lacking an MBA, and not having an Ivy League education.
  • She overcame the perception that these were necessary for success in venture capital.

"I mean, yes, certainly."

Kirsten Green confirms that she feels a chip on her shoulder, which has been a motivating factor in her career.

"For every person that looked at me while I was on this kind of let's call it my 30s. My path of discovery and exploration, which started to become clearer and clearer."

This quote reflects on Kirsten Green's journey of self-discovery and the skepticism she faced while pursuing a career in venture capital.

Venture Capital as a Collaborative and Competitive Industry

  • Venture capital is recognized as both collaborative and competitive, which Kirsten Green appreciates.
  • The industry is dynamic and continues to innovate, reflecting the nature of the businesses it invests in.
  • There are many ways to be involved in venture capital, including different firm sizes, partnerships, and investment stages.
  • Green is motivated by the success of others and the continuous challenge to improve and compete.

"I think venture is collaborative industry, and I really appreciate that. It's also a competitive industry, and I really appreciate that about it."

This quote highlights Kirsten Green's appreciation for the dual nature of the venture capital industry, which is both collaborative and competitive.

Authenticity and Strength

  • Kirsten Green emphasizes the importance of authenticity as a source of strength.
  • She believes that trying to mimic others can lead to mistakes and nervousness.
  • Authenticity allows for vulnerability, which is acceptable as no one knows everything.
  • Being real and vulnerable attracts the right people and aligns with one's true self.

"I really try to go back to a place of being authentic."

This quote underscores Kirsten Green's belief in the power of authenticity as a guiding principle for personal and professional behavior.

Venture Ecosystem and Individual Strengths

  • Venture capital is an ecosystem-driven business where founders consider various investors.
  • A council of experts with complementary strengths can enrich the decision-making process.
  • Being known for specific strengths and contributions is important in the venture ecosystem.

"Finding one of the things about venture and it being kind of an ecosystem driven business and being a founder and thinking about the various investors that you bring along around the way is you can get, like, a council of experts."

This quote explains the importance of having a diverse group of experts with different strengths in the venture capital ecosystem to support founders.

High Performance: Quality and Results

  • High performance is associated with quality, which involves critical and thorough thinking.
  • Results are also a key aspect of high performance, with different ways to measure success.
  • Excellence is a consistent goal, regardless of the specific metrics used to evaluate performance.

"Quality. And to me, quality is showing critical and thorough thinking in the work and the approach, and then results."

Kirsten Green defines high performance as the combination of quality work and achieving results, both of which require thoughtful and critical approaches.

Retaining Quality While Scaling

  • Kirsten Green is focused on maintaining quality while scaling Forerunner Ventures.
  • The team is intentionally small and tightly knit, fostering a team-oriented culture.
  • Ensuring that ambitious individuals have room to showcase their strengths is crucial.
  • Retaining quality demands focus on process and development, and gradual team growth.

"It's a great question, and it's a topic that I, in many ways, am obsessed over."

This quote shows Kirsten Green's dedication to maintaining quality in her venture capital practice as it grows.

Focus and Expansion in Investing

  • Forerunner Ventures has a strong brand in consumer investing but has never exclusively focused on it.
  • The consumer is the north star for Forerunner, guiding idea exploration and opportunity assessment.
  • Consumer changes influence business vulnerabilities and opportunities, tying B2B businesses to consumer trends.
  • The decision to widen the investment aperture is grounded in the fundamental impact of consumers on all businesses.

"I don't know, Harry, that I ever said we're only doing consumer investing."

Kirsten Green clarifies that Forerunner Ventures has always been inspired by consumer trends, even when considering investments outside of the strictly consumer space.

Evolution of Investment Strategy

  • Forerunner Ventures began with a focus on D2C (direct-to-consumer) companies, viewing them as branded companies leveraging D2C as a go-to-market strategy.
  • These companies were reshaping traditional retail and wholesale models, leading to new business tooling needs.
  • Forerunner identified underserved areas where technology and innovation could meet these new demands and invested accordingly.
  • The firm's portfolio has always included a mix of B2B and B2C companies, with the balance shifting over time.
  • Initially, the focus was more on consumer companies due to limited team size.
  • As the team grew, they expanded their focus to other areas, maintaining a consistent investment thesis development process.
  • The firm's strategy evolved from focusing on e-commerce to including B2B tools serving e-commerce, then to financial and healthcare products influenced by e-commerce trends.

"And we can do that from various different segments, and we can do that within a segment." "We've always had a mix of b to b and b to C companies in our portfolios." "We went from having a really, again, like the big picture, being consumer North Star, but saying, okay, we're going to do this one segment, we're going to do the evolution of ecommerce, and then we're going to expand it into the b, two b tools that serve that..."

The quotes emphasize the strategic approach of Forerunner Ventures in diversifying their investment focus across various segments and within specific segments, evolving from consumer-centric to a broader scope including B2B tools.

Experience and Team Growth

  • Experience gained over time helps build confidence and conviction in investment decisions and strategic discussions.
  • A wider base of examples from team experiences can be an advantage if harnessed correctly.
  • As the team grows, maintaining a tight-knit culture and providing opportunities for individual recognition and success becomes more challenging.

"So what gets easier over time is you have the benefit of experience and that can be leveraged." "But the more people you have, the more you're kind of also serving for those ambitious people and their own needs to be recognized and to have successes and wins."

The quotes highlight the benefits of experience in decision-making and the complexities of managing a growing team with individual ambitions and the need for maintaining culture.

Leadership Style and Team Empowerment

  • Kirsten Green's leadership style focuses on empowering team members to do their best work and feel acknowledged.
  • She strives to lead by example, demonstrating energy and enthusiasm for her work.
  • Green is not a micromanager but has clear expectations for quality work and the firm's market reputation.
  • Her leadership style likely attracts like-minded individuals who are also driven and enthusiastic about their work.

"I believe and I hope that I empower the people that I work with." "I try to lead by example I really love the work that I do." "I empower people to do things on their own."

These quotes reflect Kirsten Green's leadership philosophy centered around empowerment, leading by example, and setting clear standards for work quality and reputation.

Constructive Feedback

  • When giving hard feedback, it's important to be direct yet respectful, using words wisely.
  • Planning words carefully and setting up the conversation appropriately can help the recipient be more receptive.
  • Not saying too much in one conversation can prevent overwhelming the individual receiving feedback.

"So it's about being direct, but being respectful all the time, using your words wisely, and not trying to say too much in one conversation."

The quote suggests a measured and respectful approach to providing difficult feedback, emphasizing the importance of clarity and restraint in communication.

Emotional Control and Empathy

  • Kirsten Green acknowledges feeling frustration but does not lose her temper.
  • She practices holding multiple feelings simultaneously and cultivates empathy to balance her reactions.
  • Empathy allows for a more balanced approach to people and feedback.

"But do I ever lose my shit? And just. No, I don't think so." "I'm pretty good at holding multiple feelings at once."

These quotes illustrate Kirsten Green's emotional intelligence and her ability to maintain composure and empathy even in frustrating situations.

Relationships and Career

  • Kirsten Green believes that constructive relationships can enable and enhance personal goals, while destructive ones detract.
  • Understanding and prioritizing constructive relationships is key.
  • She shares her personal experience of starting Forerunner Ventures at 40, after becoming a mother, and how her husband's support enabled her to succeed in both roles.

"Actually, there are positive, constructive relationships in the world that not only add, but enable or even make possible things that you want to do as a person." "If I hadn't had a partner that had stepped up that way and had known what it meant to me and the value of that, I could not have been a good mother and started something that had potential to be successful at the same time."

These quotes convey the importance of supportive relationships in achieving career success and personal fulfillment, using Green's own life as an example.

Impact of Parenting on Investing and Operating

  • Becoming a parent can significantly alter one's approach to time management and presence in various aspects of life.
  • Kirsten Green discusses how parenthood motivated her to make the most of every moment and be fully present in different roles.
  • Parenthood has taught her to be deliberate with her time and to focus on what matters, both at work and at home.

"Honestly, I will say, I think for me, it was really an unlock it really. We're all a tapestry of different strengths and experiences that come together. So it's not just one thing, but for me, when I had my child, I really was motivated into making the most of every moment."

The quote emphasizes the transformative effect of parenthood on Kirsten Green's life, leading her to prioritize and be fully engaged in every activity, whether professional or personal.

The Dynamic Journey of Parenting

  • Parenting is portrayed as a dynamic, evolving journey that changes with the child's age and individuality.
  • The experience of parenting differs from child to child, requiring adaptability and openness to the unique challenges each child presents.
  • Kirsten Green reflects on the need to be receptive to the evolving nature of parenting as children grow and develop.

"Parenting is a journey, Harry. The kid at twelve is very different than the baby at six months and one child. I have a son and a daughter. They have so many similarities and they're also very different."

This quote illustrates the ongoing and changing nature of parenting, highlighting the differences between children and the evolution of the parental role over time.

Strengths and Weaknesses

  • Kirsten Green identifies her strength as being a strategic optimizer and her weakness as her tendency to want to say yes and help others.
  • Despite caring deeply being a strength in life, it can be challenging in her profession where she has to make difficult decisions and often say no.
  • The difficulty of giving hard feedback or answers weighs on her, even though she has learned to manage it.

"My biggest strength is I'm an optimizer. I think I'm a pretty good strategic optimizer. My biggest weakness is, listen, I care so much."

Kirsten Green sees her ability to optimize strategically as her key strength, while her caring nature presents challenges in a profession that requires frequent rejection.

Painful Lessons and Their Value

  • Kirsten Green shares that an early investment failure taught her valuable lessons.
  • The experience, although initially perceived as career-ending, later provided her with practical knowledge on business management during tough times.
  • The lessons learned are particularly relevant in the current economic climate and have been instrumental in her professional development.

"One of my earliest investments, before I had any successes that was somewhat high profile, ended in just fabulous fashion in terms of just being a big blow up."

This quote recounts a significant setback in Kirsten Green's career that, despite its difficulty, provided her with essential experience and lessons that she values highly today.

Luxury on a Desert Island

  • When asked about the one luxury she would take to a desert island, Kirsten Green initially considers sunscreen and then her iPhone, before settling on a journal.
  • She acknowledges the value of having time to think and the desire to document her thoughts, suggesting that a journal would be a luxury in such a situation.

"Journal. A journal. But you say a journal is not luxury. But if you're there, you have more time to think than you ever have in any other time. I'd like to write it down."

The quote highlights the importance Kirsten Green places on reflection and documentation, considering a journal a luxury for its ability to capture thoughts during a time of solitude.

Traits for Children

  • Kirsten Green wishes for her children to adopt resilience, curiosity, and empathy.
  • These traits are valued as foundational qualities that she hopes will guide her children through life.

"I would like my children to find resilience, curiosity, and empathy."

This quote succinctly lists the three key traits Kirsten Green prioritizes for her children's development, reflecting her values and aspirations for their character.

Knowledge for Forerunner's Start

  • Reflecting on what she wishes she had known at the beginning of Forerunner, Kirsten Green feels that her deliberate and thoughtful approach prepared her well.
  • She acknowledges the long-term commitment required in the venture capital industry and the cumulative nature of that commitment over time.

"But it's really a long haul. Every fund is a ten year commitment, at least."

Kirsten Green's quote underscores the long-term nature of venture capital investments and the significant commitment they represent.

Adapting to Build Forerunner

  • Building a team is essential, and understanding the ambitions of team members is crucial for mutual benefit.
  • Kirsten Green discusses the importance of balancing the benefits for both the firm and its ambitious employees.
  • This approach may be underappreciated or taken for granted by others in the industry.

"And I think some people do not appreciate the importance of that or the."

The quote indicates that some aspects of team building and nurturing talent may not be fully recognized by everyone in the venture capital industry, which Kirsten Green has had to adapt to.

Future Outlook for Forerunner

  • Kirsten Green expresses optimism for the future, despite anticipating some challenging economic times ahead.
  • She believes that the current climate will inspire better business building and that her team's motivation and experience will lead to discussing incredible companies in the future.

"Five years. I think we're going to be talking about incredible companies that were built custom."

This quote conveys Kirsten Green's forward-looking perspective and confidence in the potential for growth and success in the years to come.

Appreciation and Authenticity

  • Kirsten Green is commended for her kindness, genuineness, and authenticity in her professional journey.
  • Harry Stebbings expresses gratitude for her friendship and advice, highlighting the value of authentic conversations in their work.

"As I said at the beginning, Kirsten is one of the most kind, genuine, and authentic people in this business."

Harry Stebbings' quote acknowledges Kirsten Green's personal qualities and the positive impact they have had on her professional relationships and success.

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