Greylock Partners
What I Knew Before
-
Greylock is a venture capital firm that has invested in many top tech companies
-
Reid Hoffman is the VC Partner
Introduction/ Expectations
After visiting so many successful companies that began as startups, I was very interested to hear from a company that actually evaluated startups and decided whether or not to finance them.
The venture capital firm has made 604 investments in 348 companies since 1996, and has raised about $3.5 billion in capital. Greylock invested in companies such as LinkedIn, Pandora, Insta, and more, and they invest at every stage of the investment process. They are a very old firm, dating back to 1965, and they chase startups as opposed to having companies come to them.
Visit Summary
On our visit, we visited with Jeff Markowitz, who leads their executive talent team. We had met Jeff the prior Sunday when he hosted a BBQ at his house. The presentation was in the same room that many companies give pitches in; there was a long wooden table with a presenters spot at the end. The feel was very relaxed, with students asking questions throughout the presentation.
Greylock gave us insight to what they look for in a CEO. Greylock looks for leaders who have both a high IQ and EQ. They want a pitch to be extremely thorough, with the pitchers knowing every last detail about the company. They also want to make sure that a CEO fits into the company culture, are a leader, and set an example for their employees to follow. Jeff also wants to invest in leaders; he wants someone that he invests in to be a person who pursues excellence, and demands the same from their employees.
Key Takeaways
-
Greylock often invests in a person as opposed to an idea. If they come across an entrepreneur that they think is a good leader, extremely detail-oriented, have a high EQ, etc. then it is not uncommon for them to invest in them not for their business proposal, but rather because of the person. They referenced a situation in which 2 entrepreneurs had a failing venture, but because they really believed in the men, they then invested in their next venture.
-
This goes hand-in-hand with what Gary Swart said about the importance in developing a personal brand. In order to get a VC investor to believe in you, you must be selling them your personal brand.
-
-
Being a successful entrepreneur means being knowledgeable about every single aspect of your business. When you are in the pitch room, it is not acceptable to not have the answer to a question. Whether it have to do with product design, finances, marketing, or supply chain, the entrepreneur needs to know everything about every topic in order to win the investors over.
-
Having good communication skills is a skill an entrepreneur must have. When giving a pitch to investors, the slides need to be meaningful, and you must be able to confidently present your thoughts with a smooth delivery.
Post Visit Actions/ Thoughts
-
After the visit, I connected with Jeff on LinkedIn
-
Being involved in venture capital is very exciting. You get an inside look at a young company ready to hopefully grow, and you can impart advice to help a company find its way.