VC Evolve Podcast is hosted by VCpreneur: Ahmad Takatkah.

Join VCpreneur Newsletter on https://www.vcpreneur.com/ VC Evolve Podcast: Conversations about the future of VC. We talk about the Venture Capital model evolution: How has VC evolved in the past? What innovations are being introduced to the traditional VC model? What will it look like in the future? We also talk about VC data, VC books, VC tech stack, VC funds, VC skill set, challenges, opportunities, and more. Available on: Youtube: VC Evolve Podcast https://www.youtube.com/playlist?list=PLFL2yie9W80O4CS12xIWId1H-IArYBxS7 Spotify: VC Evolve Podcast https://open.spotify.com/show/1A3VgrPti8J6YeZoP3Ie7U Apple: VC Evolve Podcast https://podcasts.apple.com/us/podcast/vc-evolve-conversations-about-the-future-of-vc/id1710188809 Amazon: VC Evolve Podcast https://music.amazon.com/podcasts/57069b22-b10a-4bfd-a804-e6c5f89b9905/vc-evolve-conversations-about-the-future-of-vc --- This podcast is part of the bigger VC Evolve Project, that includes a VC book: "VC Evolve: Navigating the Art, Science, and Future of Venture Capital in an Ever-Evolving Startup Frontier" Available on Amazon: https://www.amazon.com/dp/B0DFLY2WHL --- Guest Intro: Aboudi Al-Qattan isa principal at Dash Ventures, one of the longest-standing VC firms in MENA, with a 13-year track record of venture investing. Prior to Dash Ventures, Aboudi was the founder of AlTareeq, A social enterprise that empowered refugees across the Middle East by teaching entrepreneurship skills. And listen to this!! He was a professional basketball player! Who won 5 straight local championships! He also co-hosts “Beyond The Buzzer” a podcast that explores the interplay of adversity, success, and balance for high performance athletes.

--- Highlights: --- 🏀 Aboudi's unique background as a professional basketball player adds a dynamic perspective to venture capital. 🌍 Dash Ventures focuses on startups with global potential, emphasizing long-term sustainability. 📈 The evergreen investment model allows for patient capital and flexibility in supporting portfolio companies. 💡 The importance of collaboration among VCs in the MENA region to build a thriving ecosystem. 🔄 Learning from failures is essential for improving the quality of startups in the region. 🚀 Growth funds are crucial for helping companies transition from early-stage to public markets. 📚 Continuous education and adapting strategies from developed markets can guide MENA’s VC ecosystem. --- Key Insights: --- 🌟 Patience in Venture Capital: Aboudi highlights that successful investing in the MENA region requires a long-term view, as many LPs have learned from past mistakes. The focus should be on nurturing businesses rather than seeking quick returns. 🏗️ Evergreen Investment Model: This model allows Dash Ventures to recycle capital from successful exits back into new investments, promoting sustainability and flexibility, which is essential in emerging markets. 🤝 Collaboration Over Competition: In a developing ecosystem, collaboration among VCs is necessary to foster growth and create a robust market, as mutual success benefits all players involved. 📊 Quality Over Quantity: The ongoing improvement in startup quality in MENA stems from past failures, where entrepreneurs now focus on sustainability and profitability, leading to more resilient ventures. 🚀 Role of Growth Funds: Establishing growth funds is vital for scaling startups from Series A to public offerings, which can enhance liquidity and attract more interest. 🔍 Learning from Global Markets: The MENA region can leverage lessons learned from developed markets, adapting successful strategies while avoiding common pitfalls, which can lead to a more sustainable ecosystem. 📖 Continuous Learning: Aboudi emphasizes the importance of ongoing education in the VC landscape, encouraging investors to stay informed about trends & best practices to better support founders. ---

Guest Intro:

Rama Sakaki is a partner at Transform VC. Rama is a Syrian American impact tech founder, investor, and philanthropist with 30 years of experience in media, telecom, EdTech, FinTech, and AI.

Before TransformVC, Rama worked as a VC at Turn8. She also founded and led Baraka Ventures, and Baraka Advisors. 

As a founder, Rama co-founded KeyBridge, EdSeed, BakarakBits, Mint+Laurel, and Aya Animations.

She’s a founding member of “Arab Women in Computing”, and “Women Angel investment Network (WAIN)”. 

In addition to her VC role, Rama runs an edTech nonprofit (VIP.fund) supporting youth impacted by conflict.

In today's episode with Rama:

1. Transform VC's Impact-Driven Thesis: Transform VC looks for technology that serves social or climate aspects, addressing exclusions in sectors like health and education, and ensuring inclusivity in AI development. The firm focuses on startups that articulate and measure social impact metrics alongside financial success.

2. Evolution of Impact Investing: Impact investing has evolved from initiatives like microlending for poorer communities. Investors now look for founders disrupting traditional systems, balancing financial returns with social impacts.

3. Distinguishing Impact Investing from Other Terms: Terms like ESG, SRI, and impact investing, although similar, have nuanced differences. They all aim for environmental and social impacts, but impact investing specifically focuses on companies with a bottom line in these areas, in addition to financial returns.

4. Criteria for Impactful Companies: To be considered impactful, companies must holistically benefit all community stakeholders without negatively impacting any group. Examples include ensuring equitable access to solutions and avoiding practices that favor one group at the expense of another.

5. Returns on Impact-Driven VC Funds: Historically, impact investing was synonymous with patient capital and lower returns. However, advancements in technology like AI and network effects are changing this, allowing for high financial returns without compromising social impact.

6. Investment Requirements for Impact Startups: Impact startups don't necessarily require more capital than other startups. They may need more strategic and collaborative work upfront, including input from social scientists, to ensure their business models positively impact stakeholders.

7. Women in Venture Capital: Women represent a small percentage of check writers and manage a minimal amount of venture dollars. Networks like Global Women in VC aim to increase women's representation in venture capital. Increasing awareness, education, and showcasing role models are key strategies to encourage more women to enter the VC industry.

8. Innovation in the VC Model: The VC industry can benefit from using AI and other technologies to improve efficiency and accountability. There's a need for streamlined processes for founders to connect with VCs and for higher standards in impact investing.

9. Future of VC Industry: The VC industry is expected to grow, especially in emerging markets and industries requiring bold funding for novel ideas. There's an opportunity for more educational programs and awareness to encourage diverse participation in VC.

10. VIP Fund for Youth Impacted by Conflict: The VIP Fund is a U.S.-based charity focusing on higher education for youth affected by conflict. It provides online education and funds higher education, mainly in technical fields, to support students in conflict-affected regions.

11. Participation in VIP Fund: People can volunteer or donate to the VIP Fund through their website or the Ed Seed crowdfunding platform.

VC Evolve Podcast is hosted by VCpreneur: Ahmad Takatkah.

Join VCpreneur Newsletter on https://www.vcpreneur.com/

Guest Intro:

Seth Levine is a founding partner at the Foundry Group. The Foundry Group was founded in 2007, and today it manages more than $4 billion. It has invested in hundreds of companies and dozens of venture funds.

Seth is also an author. He and Elizabeth McBride published the "New Builders" to Tell the stories of the next generation of underrepresented and minority founders.

He also shares his thoughts on his blog, Sethlevine.com. You can follow Seth Levine on X @Sether

In today's episode with Seth:

1. Foundry Group's Approachable Image:

Levine discussed Foundry Group's early strategy to seem more approachable through self-deprecating videos and humorous songs. This was a part of their ethos to demystify venture capital, contrasting with the historically opaque nature of the VC industry.

2. Focus on Transparency and Approachability:

Foundry Group, under Brad Feld and Seth's guidance, worked towards making venture capital more transparent and approachable, exemplified by their book "Venture Deals" which explains term sheets and venture capital intricacies.

3. Managing a Large Portfolio with a Small Team:

Despite managing billions and having a vast network, Foundry Group operates with a small team. They maintain a focused approach, selecting a limited number of passionate investments annually and providing essential support like hiring or firing CEOs and assisting with exits.

4. Adding Value Through Network:

Foundry Group uses simple yet effective tools like Google Groups to facilitate robust interaction among portfolio companies, promoting a mesh network over a hub-and-spoke model.

5. Asset Allocation and Fund Management:

Foundry Group has evolved its fund management strategy over the years, now operating with a single fund without specific allocations to sectors or stages, focusing on methodical portfolio management.

6. Evolving Tools for Venture Capitalists:

Levine notes improvements in tools and logistics for VC fund management but acknowledges a lack of specific tools designed for the VC market, due to its relatively small size.

7. Identifying Trends in Venture Capital:

Levine emphasizes the importance of understanding markets and trends deeply, sharing Foundry Group’s experience with Fitbit as an example of investing in emerging markets without being too early.

8. The New Builders Book and Focus on Diverse Entrepreneurs:

Levine discusses his book "The New Builders," highlighting the changing face of entrepreneurs in the U.S., including women, people of color, and immigrants. The book calls attention to the need for supporting these new builders who are vital to the entrepreneurial landscape but often overlooked by traditional VC.

9. Future of Venture Capital:

Levine sees an increasing diversity in the VC industry as a positive trend and believes there's room for innovation and new approaches in the venture model.

10. MENA Venture Capital Trends:

Levine comments on the VC boom in the Middle East, particularly Saudi Arabia, noting the inevitable market cycles but expressing optimism about the long-term robustness of these emerging markets.

11. Closing Thoughts:

Levine’s discussion reflects his deep understanding of the VC industry, emphasizing the importance of transparency, focus, and adapting to evolving market needs and trends.

VC Evolve Podcast is hosted by VCpreneur: Ahmad Takatkah.

Join VCpreneur Newsletter on https://www.vcpreneur.com/