UVC: Karl Alomar from M13 on the significance of providing support to portfolio companies when there are indications of a crisis, preference for investing in infrastructure layer startups & why VCs should think like an entrepreneur
Understanding VC is a deep dive on how venture capitalists work. In this episode, I talk to Karl Alomar, Managing Partner at M13 who shares his experiences of navigating success, challenges, and crises while building multiple startups. He believes that a VC should think like an entrepreneur and also discusses whether prior experience as an entrepreneur is ideal for becoming a VC.
M13's propulsion platform differs from other VC funds, and Karl explains how it helps startups. He emphasizes the importance of supporting portfolio companies when there are leading indicators for a crisis and building trust with founders.
M13's investment thesis focuses on backing startups that are building infrastructure layers. Karl identifies common mistakes made by teams and founders of infrastructure layer startups and how they can be avoided. He explains his quote 'the value that I seek can only be realized at scale' and what kind of startups he is looking for. Finally, Karl shares his insights on how startups should strategize their fundraising and operations during an economic downturn like the one we are experiencing now.
In this episode you will learn:
- What are some of the success stories, challenges, and crisis that Karl faced while building multiple startups, and how did he navigate them?
- According to Karl, why should a VC think like an entrepreneur, and how can this approach benefit startups?
- Does Karl believe that prior experience as an entrepreneur is ideal for someone looking to become a VC, and why?
- How is M13's propulsion platform different from the platform model of other VC funds, and how does it help startups?
- Why is it important for VCs to support their portfolio companies when there are leading indicators of a crisis?
- Why is building trust with founders important for a VC to ensure that they are taken seriously and not create friction?
- What is M13's investment thesis, and why do they prefer to back startups that are building infrastructure layers?
- What are some common mistakes made by the teams and founders of infrastructure layer startups, and how can they be avoided?
- What does Karl mean when he says, "The value I seek can only be realized at scale," and what kind of startups is he looking for?
- How should startups strategize their fundraising and operations during an economic downturn like the one we are experiencing now?
About
As DigitalOcean's COO, Karl built the business from first product to >500 employees & $250M ARR over six years and prepared it for its eventual IPO (NYSE: DOCN). Having previously managed and exited two startups over a 20 year operating career, Karl is now M13’s managing partner and oversees its day-to-day operations.
Managing Partner at M13
As DigitalOcean's COO, Karl built the business from first product to >500 employees & $250M ARR over six years and prepared it for its eventual IPO (NYSE: DOCN). Having previously managed and exited two startups over a 20 year operating career, Karl is now M13’s managing partner and oversees its day-to-day operations.
