04: 3x tech founder turned seed VC brings a founder mindset to startup investing - Amit Kumar, Accel

03/12/24 • 61 min

Amit Kumar, former founder and angel investor, is a generalist venture capitalist at Accel focused on dev tools, healthcare, and fintech startups. Twitter acquired Amit’s third company, and it was then that he realized his true purpose was supporting startup founders, and he shifted to venture capital. Amit shares insightful stories and lessons learned from 8 years of early-stage investing out of a large, top-tier VC fund.

Amit writes checks of $2M to $4M as the lead and first institutional seed investor.

Highlights from our discussion:

How Amit frames venture capital as a long game
Why Amit considers himself a “co-founder as a service,” and how that serves his startup community
The right way to think about deal setup for successful early-stage investing
Why the problem slide in your pitch deck is most important

This is for information purposes only. This is not investment advice.

Topics

(00:00) - 04: Amit Kumar - Accel
(00:16) - A startup idea seed investors will definitely say NO to (but maybe Shark Tank will take it)
(03:35) - Amit Kumar - seed investor and First Funder at Accel
(05:17) - Amit's Transition to Accel and the Power of Networking
(07:38) - How Amit learned about angel investing - friends, conferences, and meetups
(08:47) - What does it look like when a VC firm recruits you as a potential founder? Potential partner?
(12:14) - Angel investing as risk diversification and knowledge sharing, especially for existing startup founders
(13:56) - Venture capitalists can provide "co-founders as a service"
(17:21) - How Amit chose between being a founder again and investing full-time
(20:06) - Amit's first investment, and how past founder relationships build trust
(22:23) - Startups that don't go public in 7 years - does that hurt your model and LP relationships?
(24:11) - Conviction, not consensus - but what builds trust among GPs when startup investing?
(26:30) - Startup valuations: Amit's venture capital POV and moving targets in 2024
(28:37) - How does a large early-stage VC think about follow-on investments and the number of startups to fund?
(31:57) - Taking bigger risks earlier
(34:49) - How startup investors consider incumbents in a space when assessing competition and exits
(36:24) - Headway, and what Amit has learned about identifying good startup investments in new markets
(42:05) - How to think about thesis investing, conflicts of interest, and competing startups
(45:14) - How Amit thinks about return profiles and seed investing today
(48:08) - What founder and market signals does a venture capitalist look for?
(50:39) - How to get on the Midas List - it's the fundamentals
(51:47) - A movie you must see to understand venture capital and startup investing matters
(54:15) - Takeaways from Amit Kumar's First Funder approach
(01:01:18) - Outro

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Amit writes checks of $2M to $4M as the lead and first institutional seed investor.

Highlights from our discussion:

How Amit frames venture capital as a long game
Why Amit considers himself a “co-founder as a service,” and how that serves his startup community
The right way to think about deal setup for successful early-stage investing
Why the problem slide in your pitch deck is most important

This is for information purposes only. This is not investment advice.

Topics

(00:00) - 04: Amit Kumar - Accel
(00:16) - A startup idea seed investors will definitely say NO to (but maybe Shark Tank will take it)
(03:35) - Amit Kumar - seed investor and First Funder at Accel
(05:17) - Amit's Transition to Accel and the Power of Networking
(07:38) - How Amit learned about angel investing - friends, conferences, and meetups
(08:47) - What does it look like when a VC firm recruits you as a potential founder? Potential partner?
(12:14) - Angel investing as risk diversification and knowledge sharing, especially for existing startup founders
(13:56) - Venture capitalists can provide "co-founders as a service"
(17:21) - How Amit chose between being a founder again and investing full-time
(20:06) - Amit's first investment, and how past founder relationships build trust
(22:23) - Startups that don't go public in 7 years - does that hurt your model and LP relationships?
(24:11) - Conviction, not consensus - but what builds trust among GPs when startup investing?
(26:30) - Startup valuations: Amit's venture capital POV and moving targets in 2024
(28:37) - How does a large early-stage VC think about follow-on investments and the number of startups to fund?
(31:57) - Taking bigger risks earlier
(34:49) - How startup investors consider incumbents in a space when assessing competition and exits
(36:24) - Headway, and what Amit has learned about identifying good startup investments in new markets
(42:05) - How to think about thesis investing, conflicts of interest, and competing startups
(45:14) - How Amit thinks about return profiles and seed investing today
(48:08) - What founder and market signals does a venture capitalist look for?
(50:39) - How to get on the Midas List - it's the fundamentals
(51:47) - A movie you must see to understand venture capital and startup investing matters
(54:15) - Takeaways from Amit Kumar's First Funder approach
(01:01:18) - Outro

Connect with Us

Follow the First Funders Podcast

Newsletter with behind-the-scenes access and key takeaways

Twitter/X @shaherose

Twitter/X @avirani

Email us with feedback and suggestions on topics and guests

Previous Episode

03: Angel vs VC, finding purpose and community in startup investing - Rachel Sheinbein

Rachel Sheinbein is an angel investor with over 250 startup investments. She shares her insights on angel investing and how it allows her to work with founders “even before the seed stage,” writing $25k checks into technology startups through her vehicle Very Serious Ventures. Later, Rachel discusses how building a community drives her investing strategy and lessons from memorable startup investments. Shaherose and Aamir kick off the show with a special message for founders who like to argue and end with their personal takeaways from the conversation with Rachel.

Highlights from our discussion:

Why Rachel chose angel investing over a partner position at a VC firm
What to look for in a quality angel group
Using a DAF to align with an investing purpose
Detecting founder passion and coachability
Defining your purpose

This is for information purposes only. This is not investment advice.

Topics

(00:00) - 03: Rachel Sheinbein, Angel
(01:14) - PSA: Your startup's users know more than Aamir the angel investor does
(02:51) - Rachel Sheinbein, angel investor and advisor
(04:56) - From engineering to venture capital to angel investing
(07:28) - Do angel groups and angel networks provide value to startup investors?
(13:23) - How Rachel aligns purpose and philanthropy with her early-stage startup investing
(16:08) - Rachel's first angel investment was in a gaming startup
(19:17) - Investor experience, startup luck, and Sequoia
(21:49) - How does an angel investor like Rachel measure bad outcomes in startup investments?
(24:53) - How angel investors operate differs from venture capitalists
(29:47) - Pitch decks - do they matter when seed investing so early?
(33:45) - Startup founder signals that matter to an angel investor
(40:47) - A climate tech seed investment that paid off quickly and returned funds
(46:39) - Very Serious Ventures angel invests $25k super early in founders
(48:51) - An exercise to help you become a better angel investor
(51:04) - Speed round, and the best book on strategy for startup founders
(52:59) - Our takeaways on better startup investing

Connect with Us

Follow the First Funders Podcast

Newsletter with behind-the-scenes access and key takeaways

Twitter/X @shaherose

Twitter/X @avirani

Email us with feedback and suggestions on topics and guests

Next Episode

undefined - 05: Discovering hidden baseball talent to leading Sales at Stripe all applied to finding outliers in tech - Meka Asonye, First Round Capital

05: Discovering hidden baseball talent to leading Sales at Stripe all applied to finding outliers in tech - Meka Asonye, First Round Capital

Meka Asonye, a Partner at First Round Capital, started angel investing in 2018 while working at Stripe and joined First Round in 2021. He has made dozens of Angel investments and 13 Venture investments, and he's just getting started! While he focuses on B2B SAAS, he has not shied away from investing in audacious founders, from modernizing 911 call centers to putting the biggest satellites in space. Meka shares his approach to finding true outliers, a practice he began while uncovering hidden talent for the Cleveland Guardians.

Meka writes checks of $2M to $5M as the lead at pre-seed and seed.

Highlights from the discussion:

Meka's unconventional path to VC: from discovering high-potential baseball talent to leading sales at startups to VC
Meka's first angel investment came from Craiglist!
Exploring the frontiers: investing in Space and GovTech
How Meka supports founder friends, honestly
Leveling up in VC by learning from partners, retros, reviews, and reflection powered by process and data

This is for information purposes only. This is not investment advice.

Topics

(00:00) - Kicking Off the First Funders Podcast with Meka Asonye
(03:52) - First Round Capital's role in Meka and Shaherose's transition from Angel to VC
(05:53) - Meka's Unconventional Path to Venture Capital: from baseball talent to management consulting to startups to VC
(10:54) - Meka's purpose is rooted in being a part of the founder's village
(13:55) - The Art of Angel Investing: Meka's First Investment Story came from a person he met on Craiglist!
(18:37) - Thoughtful reflection: outliers can't be discovered via pattern matching
(20:15) - How Meka assesses for money smells and hustle in a founder
(23:16) - Missed deals like Anthropic keep Meka up at night.
(28:10) - How Meka supports founder friends
(33:42) - Outcomes and up rounds thus far: Rimeto, CODA, K2Space, Prepared
(36:16) - Exploring the Frontiers: Investing in Space and GovTech
(37:42) - Meka's betting on a pair of brother's putting big satellites in space
(39:04) - Unexpected VC bet: Integrating tech into every 911 emergency call
(43:31) - Meka is a generalist investor with a focus on B2B SAAS, Fintech and hard tech
(44:54) - Investing in YC companies and maintaining an orientation towards prioritizing ownership over valuation
(49:28) - First Round Capital's approach is rooted in consensus not conviction, they invest as team
(52:17) - Leveling up in VC by learning from partners, retros, reviews, reflection powered by a process and data
(01:07:47) - Outro