005 - Clara Brenner, Cofounder and Managing Partner at Urban Innovation Fund
Forward Thinking Investors Podcast Recap
Published:
Duration: 24 min
Guests: Clara Brenner
Summary
Clara Brenner of Urban Innovation Fund discusses her journey into venture capital, the concept of urban innovation, and the strategic approach her firm takes in investing in startups that enhance urban living.
What Happened
Clara Brenner shares her journey into venture capital, starting from her initial career in commercial real estate development. She recounts how her interest in urban innovation was sparked during business school alongside her classmate, Julie, as they observed emerging companies like Lyft and Airbnb.
Brenner and Julie identified common challenges faced by urban innovation companies, particularly regulatory and political hurdles. This led them to conduct a research study and eventually pitch their ideas to Blackstone, which supported their initiatives for three years. The success of their incubated companies gave them the credibility to launch Urban Innovation Fund in 2016.
Urban Innovation Fund focuses on startups tackling major urban challenges, including transportation, prop tech, education, and fintech. Brenner emphasizes a broad definition of urban innovation, seeking companies that address problems prioritized by mayors' offices but often underfunded.
Brenner explains the firm's investment strategy, which targets pre-seed and seed-stage companies with an initial check size of around $750,000. The firm aims to maintain a balance between having enough shots on goal and controlling enough stake in companies to drive returns.
The episode also delves into the qualities Brenner looks for in founding teams, emphasizing the importance of team dynamics and strong storytelling abilities to attract further investment. She notes that having a strong evangelist for the business is crucial, especially in a post-COVID environment.
Brenner reflects on how COVID-19 has influenced venture capital, noting an increase in competition and pipeline volume due to the shift to virtual meetings. She observes a growing interest in sectors like education and workforce development, areas that align with her fund's focus.
Throughout the conversation, Brenner highlights the need for venture capitalists to empathize with entrepreneurs, as they are entrepreneurs themselves. She encourages founders to reach out to Urban Innovation Fund through their website or Twitter, emphasizing the importance of diverse deal flow.
Key Insights
- Urban Innovation Fund was launched in 2016 to support startups addressing urban challenges, with initial investments focusing on transportation, prop tech, education, and fintech sectors.
- The firm targets pre-seed and seed-stage companies with an initial check size of approximately $750,000, aiming to balance the number of investments with maintaining significant equity stakes.
- COVID-19 has increased competition and deal flow in venture capital due to the shift to virtual meetings, with growing interest in education and workforce development sectors.
- Urban Innovation Fund encourages diverse deal flow and invites founders to connect via their website or Twitter, emphasizing the importance of empathy and understanding in venture capital.