In this episode of "20 minutes VC," host Harry Stebbings interviews Sar Gur, a General Partner at CRV, one of the nation's oldest and most successful venture capital firms. Sar shares insights from his journey in VC, highlighting the importance of supporting entrepreneurs, not just financially but by fostering their growth mindset and aiding in company building. He emphasizes the role of VCs in navigating founder disputes and the need for diversity in venture capital. Sar also discusses his approach to relationship building with founders, prioritizing authenticity and trust. The conversation delves into the challenges founders face, particularly in hiring and evolving as CEOs, and how VCs can add value beyond capital by encouraging founders to think differently and be resilient in the face of adversity.
"I'm thrilled to welcome an all star from the world of VC to the hot seat today. Saar Gur. Now Saar is a general partner at CRV, one of the nation's oldest and most successful VC firms." "Prior to VC, Saar was the founder of Brightroll, a leading video ad network that was acquired by Yahoo for a reported $640,000,000."
These quotes introduce Saar Gur as a prominent figure in the venture capital industry, highlighting his successful background as both an investor and entrepreneur.
"Foundersuite makes the leading CRM for raising startup capital." "Recognized as the 2017 best place to work in the US by Glassdoor, Greenhouse currently works with over 1500 of the world's most innovative companies."
These quotes describe the services provided by Foundersuite and Greenhouse Software, emphasizing their importance in the startup and hiring ecosystems.
"I've had a fascination and a respect for entrepreneurs... I've been genuinely happy for entrepreneur successes, whether I know those people or not." "No matter what my day job was... I found I was always spending time on weekends and on evenings and during work trying to help my entrepreneur friends."
These quotes from Saar Gur reflect his deep-rooted passion for entrepreneurship and his journey from helping friends to becoming a key player in venture capital.
"Now, it took me a few years, a couple of years to kind of come around to getting really excited to do venture." This quote explains the time it took for Harry to become enthusiastic about a career in venture capital.
"The idea of being able to give them lots of money at a time when many vcs were doubtful of consumer Internet companies was exciting to me." Harry was excited by the opportunity to invest in consumer Internet companies, which were not widely supported by other venture capitalists at the time.
"And for me, I did find a partnership. The folks here at CRV who I really liked and respected and thought they could also make me a better investor." The quote highlights the importance of finding a venture capital firm, in this case CRV, that aligned with his values and could help him grow as an investor.
"I think when I came around to that realization, I was ready to engage and join the folks at CRV." Harry's readiness to join CRV came after he accepted that he could find fulfillment in focusing on other people's companies rather than starting his own.
"I think we add value, but 99% of the work is on the founders, but the biggest value that we add is the money." Saar acknowledges that while venture capitalists can add value, the majority of the effort and success lies with the founders, and the most significant contribution from VCs is financial.
"If we believe in the team, we often will fund the team, hoping that they make it to the other side." This quote emphasizes the venture capital approach of CRV, which focuses on the founding team's potential and progress rather than just the current financial state of the business.
"I think some of the biggest moments, most gratifying moments I’ve had have been when I can look back and I've been right." Saar reflects on the rewarding experience of having his belief in a founding team validated through their eventual success.
"So authenticity to me speaks volumes. Like, if you're working on a problem and it's very authentic to who you are, and you're inspiring to me that you're working on this problem, and I see potential talent in your ability to solve that problem, I find it very energizing to want to build a relationship with those founders." Saar values authenticity in founders and is drawn to those who are genuinely passionate and talented in solving problems, which prompts him to build relationships with them.
"First we need to build some level of communication, not unlike my marriage. If I don't find regular communication, it's hard to have ongoing trust." Saar compares the importance of communication in building trust with founders to that in his marriage, highlighting its critical role in relationship-building.
"Some of my founders want to take a walk on Sunday evenings. Some of them want to talk on the phone several times a day. Others want to text and engage primarily over text." This quote illustrates the diverse communication preferences of different founders and the need for venture capitalists to be flexible in their approach to relationship-building.
"I honestly feel like I approach my founders from a point of love, wanting them to succeed, and a point of wanting to be fearless in believing in their success."
This quote encapsulates Harry's investment philosophy, which is grounded in a supportive and trusting relationship with the founders he invests in.
"But thinking about the world differently often has great impact and unlocks huge potential in founders and in companies."
Saar Gur explains that a fresh perspective can be a powerful catalyst for growth and innovation within a company and its leadership.
"And many young founders, I don't see them applying a growth mindset to sort of understanding what being a CEO means and how that role changes over time."
Saar Gur points out a common oversight among young founders, who may not fully appreciate the dynamic and demanding nature of the CEO role.
"So one of the things I love in being a venture capitalist is once a company finds product, some sort of product market fit, the company actually becomes the product in my mind."
Saar Gur shares his perspective on the evolution of a company post-product-market fit, highlighting the shift in focus from the product to the company's internal structure and processes.
"I think that many teams at the state, again, where I tend to get involved is when the team is very tiny."
This quote from Saar Gur acknowledges the challenges that arise when a startup begins to scale and the founder must adapt to a changing team dynamic.
"So the fun part in what I find in most of venture capital is vcs can get as involved or as uninvolved as they want."
Saar Gur describes the flexibility VCs have in engaging with the internal challenges of the companies they invest in, highlighting that many choose not to get deeply involved.
"Look back two years later and say I felt that that was not the right decision, that this was fixable, and that both of them could be highly productive and contribute a ton to the company. And in that unique example, I was right. And fast forward two years later. They've got an amazing relationship and they're doing phenomenally well."
This quote illustrates the potential for positive outcomes when conflicts between founders are managed effectively. Saar Gur reflects on a situation where his decision to work through the conflict led to the founders having a strong relationship and contributing significantly to the company's success.
"It's different to go get. I'm trying to think in the one situation, I think it was like no less than 20 conversations, maybe even more, with a number of walks and dinners and lunches, to just really dig deep and try and figure out what was really going on and what was motivating both sides and assumptions people had."
Saar Gur describes the extensive effort required to resolve founder conflicts, including numerous conversations and meetings to understand each party's motivations and assumptions.
"As the company really gets product market fit and grows as an organization, you get a lot of challenges, ego challenges, and figuring out where to place people and skill sets and other things that make it really hard."
This quote highlights the complexities that arise as a startup matures, particularly relating to the distribution of roles and the management of egos among founders.
"Like, hey, if you want to stay engaged, here's some ways to think about your new role in the company and how you might be successful here."
Saar Gur advises on the importance of guiding founders through transitions in their roles, ensuring they remain productive and engaged with the company.
"So my latest favorite from the summer was the Wright brothers by David McCullum. Lots of reasons, I love it, but it shows that two brothers in a bike shop in Ohio can change the world against what everyone else in the world was thinking at the time."
Saar Gur explains that "The Wright Brothers" is his favorite book because it demonstrates the power of innovation and determination, even from an unlikely source.
"Know, I definitely don't think we need more vcs, but we definitely need a lot more diversity and venture."
This quote emphasizes Saar Gur's view that the venture capital industry does not necessarily need more investors but does need a wider range of perspectives and backgrounds to support a diverse array of businesses.
"Really scared about our new president and continue to have to figure out how to explain his behavior to my kids."
Saar Gur shares his personal apprehension regarding the President and the difficulty he faces in discussing political matters with his family.
"I have to say, it might be cheesy, but TechCrunch because I love learning about all the cool startups out there."
This quote reveals Saar Gur's interest in the startup ecosystem and his choice of TechCrunch as a reliable source for news and updates on emerging companies.
"My short term success is probably what my founders say about the impact that I've had onto their successes."
Saar Gur values the feedback from founders he has worked with as a measure of his success.
"And my long term goal is I dream of working with these foundational companies that have a big impact in the world and ideally are around when my grandkids are around and their grandkids, and they could look back and say, your grandfather helped, had an impact on starting or building that company."
This quote outlines Saar Gur's long-term aspirations to be part of companies that make a significant and enduring contribution to the world.
"So funny enough, it would go back a while. My last four investments have all been stealth very early, but the answer as to why I said yes is very easy. Team? Team."
The quote reveals that Saar Gur's investment strategy focuses heavily on the team behind a startup, indicating his belief in the importance of strong leadership and team dynamics for success.
"Foundersuite customers have raised over $130,000,000 in seed and venture capital."
This quote promotes Foundersuite as a successful tool for startups seeking investment.
"Greenhouse currently works with over 1500 of the world's most innovative companies, such as Airbnb, Slack Snap Inc. And Lyft."
Saar Gur highlights Greenhouse's role in helping top companies recruit effectively, underscoring the importance of hiring the right candidates for business success.