006 - Natty Zola, Cofounder and Partner at Matchstick Ventures
Forward Thinking Investors Podcast Recap
Published:
Duration: 23 min
Guests: Natty Zola
Summary
Natty Zola shares his journey from a founder to a venture capitalist and discusses the evolving startup ecosystem in non-coastal regions. He emphasizes the importance of building relationships with investors early and describes Matchstick Ventures' focus on overlooked markets.
What Happened
Natty Zola reflects on how the 2020s offer unprecedented opportunities for startups, thanks to accessible learning tools and platforms like Bubble and Product Hunt. However, venture capital hasn't fully adapted, often remaining concentrated in coastal cities. Zola's journey into venture capital began as a founder in Boulder, Colorado, where he discovered a burgeoning startup ecosystem and valuable investor relationships.
He emphasizes the importance of investors in his growth as a founder and how this experience inspired his transition to venture capital. Zola's time at Techstars provided a testing ground for his investing skills and deepened his passion for working with entrepreneurs. He describes his role as a VC as a daily opportunity to collaborate with smart, driven individuals shaping the future.
Zola explains Matchstick Ventures' focus on pre-seed and seed-stage software companies in the Rockies and North regions of the US. The firm leverages its deep networks and connections in these areas, which are experiencing rapid growth and increased entrepreneurial density, especially post-COVID.
He observes that the pandemic accelerated the decentralization of talent from coastal tech hubs, fostering new startup ecosystems in places like Boulder and Denver. These regions now attract ambitious entrepreneurs who value quality of life and lower costs, while still accessing high-caliber talent and resources.
Zola outlines Matchstick Ventures' investment philosophy, prioritizing team quality above all else, followed by market potential, progress, and the idea itself. He believes that exceptional founders can navigate market challenges and create significant value.
For founders seeking venture capital, Zola advises building relationships with investors well before needing to raise funds, allowing investors to track their progress and increasing the likelihood of investment. This approach mirrors how Matchstick Ventures engages with potential portfolio companies, emphasizing a 'give first' ethos in nurturing ecosystem relationships.
Key Insights
- The 2020s offer unprecedented opportunities for startups due to accessible learning tools and platforms like Bubble and Product Hunt, yet venture capital remains concentrated in coastal cities, limiting investment reach.
- Matchstick Ventures focuses on pre-seed and seed-stage software companies in the Rockies and North regions of the US, leveraging deep networks in areas experiencing rapid growth and increased entrepreneurial density post-COVID.
- The pandemic accelerated the decentralization of talent from coastal tech hubs, fostering new startup ecosystems in regions like Boulder and Denver, which now attract entrepreneurs who value quality of life and lower costs.
- Matchstick Ventures prioritizes team quality above all else in its investment philosophy, followed by market potential, progress, and the idea itself, believing exceptional founders can navigate market challenges and create significant value.