007 - Sheel Monot, Cofounder and GP at Better Tomorrow Ventures
Forward Thinking Investors Podcast Recap
Published:
Duration: 28 min
Guests: Sheel Monot
Summary
Sheel Monot shares his journey into venture capital and the strategic decisions behind founding Better Tomorrow Ventures. The episode highlights the focus on fintech and the importance of team dynamics in early-stage investments.
What Happened
Sheel Monot begins by recounting his unconventional path into venture capital, which started with creating software for hospitals, followed by management consulting, and eventually leading to founding two companies that were acquired. His entry into venture capital began when one of his investors invited him to join as a VC, which led to the creation of Better Tomorrow Ventures with his partner Jake.
Monot describes the strategic decisions involved in starting a fund, emphasizing the importance of portfolio construction and the necessity of a large number of seed-stage investments to offset risks. He details how Better Tomorrow Ventures plans to invest in 30 companies with a $75 million fund, allotting a significant portion for follow-on investments.
The conversation delves into the firm's focus on fintech, a sector both Monot and his partner have deep experience in. Despite initial skepticism about fintech's potential, Monot argues that the sector is ripe with opportunities, especially as more companies embed financial products into their existing services.
Monot highlights the importance of evaluating the founding team during the seed stage, prioritizing their ability to execute and attract talent, customers, and investors. He underscores that while markets and products may evolve, the founding team's composition remains crucial to a startup's success.
The topic of cryptocurrency and blockchain arises, where Monot expresses a cautious stance. While personally invested in Bitcoin, Better Tomorrow Ventures does not prioritize blockchain investments, as they perceive the current market to cater mainly to other blockchain users rather than the general consumer.
Monot discusses the challenges of the current venture landscape, noting the increase in startups and the difficulty in filtering through numerous opportunities. He emphasizes the importance of being chosen by startups, which requires building a strong brand and rapport with founders.
Finally, Monot shares insights on what makes a founding team appealing, such as their vision, execution capacity, and team dynamics. He concludes by reflecting on the unique nature of venture capital, where being chosen by the right startups is as crucial as picking the right investments.
Key Insights
- Better Tomorrow Ventures plans to invest in 30 companies with a $75 million fund, allocating a significant portion for follow-on investments to manage risk and maximize returns.
- Despite skepticism about fintech, the sector offers significant opportunities as more companies integrate financial products into their existing services, aligning with Better Tomorrow Ventures' focus.
- While personally invested in Bitcoin, Better Tomorrow Ventures does not prioritize blockchain investments, perceiving the current market as primarily serving other blockchain users rather than the general consumer.
- In the current venture landscape, the challenge lies in being chosen by startups, which requires building a strong brand and rapport with founders to stand out among numerous opportunities.