Artisanal Cheese, Cocktails … Now the Artisanal VC?

Reno Martin/Shutterstock

Reno Martin/Shutterstock

Most venture investors say they are hands-on, but now some are taking it a step further and calling themselves “artisanal” VCs. What does this term really mean? Is it just a pretentious moniker that fits into today’s world of “handcrafted” $5 coffee and $4 toast? Or is there actually a new movement happening in the venture community?

While the term “artisanal” may be a bit overhyped, I would argue there is a real change afoot in the early-stage venture industry. There is a curiosity on the part of some VCs to focus on being a part of fewer, higher-quality, handcrafted companies. Investors like myself are now applying the same type of “craftsman” passion and care to help nurture companies from their earliest stages.Continue Reading

A ‘Silver Linings Playbook’ approach to venture capital

Silver liningThe venture capital industry is getting rightsized, with less capital raised and deployed, smaller funds, fewer active venture capital firms, and more regulation. The exit climate has picked up, but is still not at the level required. And valuations are overall more rational, with some exceptions at the later stages or in consumer-facing momentum companies.

However, with the confluence of not one but four big market drivers (discussed below), and the rise of a new technology cycle,  we think this is still a great time to be a venture capitalist or entrepreneur.

Recent VC industry data released by the NVCA confirmed the reality of a welcome flight to quality and rightsizing trend. Key findings include:

  • In 2012, the VC industry raised $20 billion vs. the almost $100 billion in 2000;
  • 92% of this capital went to existing managers (vs. first-time managers) and 48% went to 10 large firms;
  • Overall, about 522 firms are estimated to be active, and some believe this number even lower closer to 100 defined as firms that have made at least 4 investments over the last year;
  • The median fund size for 2012 was $150 million, and the overall deal pace has come down to slightly over 750 investments per quarter;
  • Although some momentum companies are being bid up, valuations are trending lower overall according to Dow Jones Venture Source data.Continue Reading

Rules of the Road for the Era of Simplicity, Mobile and the Social Web


SocialI have been involved in the technology industry for 20 years as a serial entrepreneur, corporate executive and investor. There are some key rules of the road that have guided my journey and these are especially relevant in the current era when the social Web is dominant, mobile platforms are ubiquitous and consumers are demanding simplicity. As an entrepreneur, I believe that living by some core beliefs is key to leading teams and building companies that last. Here are a few of my fundamental beliefs, illustrated with examples from the entrepreneurs that we are working with.

The Customer is Queen:

Actively listening to your customers and rapidly iterating to reflect customer needs has never been so important. From a vendor of cloud-integrated storage appliances to a mobile fashion marketplace, Mayfield Fund entrepreneurs like Ursheet Parikh and Guru Pangal of StorSimple and Manish Chandra of Poshmark, who constantly listen, react and respond to customer feedback, are finding a quick path to customer engagement.Continue Reading

Going Green: Investing In Consumer Focused Energy Tech

In recent years, the revolutionary opportunities in the energy sector have attracted billions of dollars from early stage venture investors. But the venture world has learned some hard lessons on the difficulty of building energy businesses: they face science risk, often take a long time to scale and can be capital intensive.

While the overall appetite for venture-backed energy suppliers has cooled, we believe there are abundant opportunities for entrepreneurs to innovate on the ‘demand-side’ of energy markets. We are seeing a wave of new energy companies developing technologies focused on energy efficiency. Alas, most of these companies fall short when it comes to bridging that crucial gap between technical innovation and customer adoption. Similar to the trend toward consumerization of IT, we believe the companies that are poised to explode and redefine the energy tech landscape are the ones that are putting the consumer in the driver’s seat. Their value goes beyond the promise of energy efficiency, to deliver products and services that delight users, make them accessible through innovative business models, and understand the mindset of the energy consumer.Continue Reading