When I started Ascend in 2019, I realized even though I was o-l-d OLD, I had more in common with the folks in town who were earlier in their professional investing journeys than the venerable VC’s I’d pitched as a founder. I admire and respect the new wave of Seattle/Pacific Northwest venture capitalists, and thought it would be fun to profile some of our region’s up and coming VC talents in these pages. —KW
I met Minda when both of us were still angel investing and exploring whether a “second career” in venture capital was something worth pursing. It turns out, for both of us, it was - and for many of the same reasons. I admire Minda’s founder-first perspective as well as the way she brings her whole self to the table. Whether raising millions of dollars to aid families in need during COVID, or raising her first venture fund, Minda’s infectious (pun intended) optimism rubs off on everyone around her, while her diligence and intellectual rigor bring the best kind of focus to her portfolio.
What made you decide to be a professional investor?
The leap came when I met Yoko Okano, my co-founder at First Row Partners a few years ago when we were in the angel group community as fund managers, investors and organizers. We clicked as collaborators and co-investors. We share and discuss divergent viewpoints really well, and our career goals align. We didn’t take starting a firm lightly, either. We spoke to a lot of fund managers about the challenges of moving from angel investing to venture fund management. Having our own firm gives us maximum flexibility and control for defining an investment strategy and deploying capital. I have a non-traditional background for venture capital, but one that I hope becomes more common.
The opportunity to expand my scope and expand professionally, as a venture partner for 2048 Ventures, means I can lead pre-seed rounds (First Row doesn’t yet lead rounds.) It means deploying more capital to early stage companies and being strategically involved in their raise. The 2048 ecosystem of founders and investing team offers more sounding boards and deal circulation outside of Seattle. And, they are excited about Seattle deals!
What did you do before becoming an investor and how does that benefit your founders?
I was a ‘lynchpin’ employee or co-founder at early stage startups for 20+ years, after five years doing systems integration projects for large product companies like Dial Corporation, Siemens, Motorola, HP and LSI Logic. I was at Andersen Consulting, now Accenture. I don’t code, but I’ve done every other role, in some part, at some point. I’ve worked across solutions in mobile apps, blockchain, affiliate marketing and lead generation, eProcurement SaaS + marketplace, and retail tech. “Figuring things out” has always been part of the job. So, I’ve also become good at sharing what I’ve learned.
Founders have said they appreciate my clarifying questions rather than doing ‘advice giving.’ Having been in startups for over 20 years, I’ve seen a lot. But it isn’t the direct application of a specific experience that helps, usually. I like to think I have a few good stories, though. Startups have a lot of ambiguity and the best way to navigate is by asking good questions and trying to connect dots.
These discussions begin at the earliest stages of meeting founders and really get going post-investment. In our initial meetings, founders frequently say things like, “Wow, you really get it. It feels like you were in our launch planning meeting last week!”
What are your most successful investments so far?
One of the hardest things about investing in pre-seed startups is the long feedback cycle of 5-10 years. I’m only a few years into investing, so I don’t have a ‘big exit’ story from an investment to share. I am delighted to have led the investment in Xemelgo as the fund manager for Seattle Angel Conference. They are creating the ‘digital twin’ of a factory floor with apps that pull sensor and other physical-layer data together. Being able to see their internal development and external growth (during COVID!) has been rewarding.
Why should founders want you on their cap table?
We call our firm “First Row Partners” because we see ourselves as being in their 'first row' of supporters, and we respect that founders are the ones doing the hard work and bringing a big idea to life. During the investment decision process, we identify the key milestones that the company needs to hit and which ones we can move the needle on. It sets expectations on both sides and helps us scale our time with each company. My goal is to use the founders’ time well because it’s a scarce resource.
How many new pitches (actual calls/zooms) do you take per month?
Maybe 30? It varies, and I am selective about meetings by asking for key information upfront. But I am all in on cold outreach by founders. I see a lot of pitch decks and wish every team in the PNW was on my radar. I try only to take a founder’s time if there’s a true chance for an investment. I have separate mentoring time on my calendar and find ways to be accessible through CoMotion at the UW and other accelerator programs. I miss our downtown Seattle coworking hubs like Create33, and I plan to organize some open/group coworking events once COVID safety permits.
How many new investments do you make per year?
Unclear, but I hope to be part of 10++ investments between First Row and 2048.
What's your sweet spot(s) in terms of check size, valuation, and vertical?
Both 2048 Ventures and First Row like to meet teams early -- pre-accelerator, post-team formation. Typically, these teams have valuation caps below $5M.
First Row checks are $25k today and will be $100-200k around 2021 Q2. We will be an early commitment in a round, but we don’t anticipate being the lead investor. 2048 Ventures is a high-conviction lead investor with an investment of $300-600k. At the pre-seed stage, that could be an entire round.
Both firms look for companies where technology or data is the differentiating factor. First Row emphasizes solutions where software is enriching our lives through community networks, at work and our consumer/retail lives. 2048 goes further -- adding deep tech, genomics, robotics and mobility.
What one portfolio company do you want to hype for us here?
I’m excited for Dathic, a company that 2048 and First Row co-invested in 2020 and I was the lead. They’re going to be the central source for modeling insights on the diverse Hispanic consumer. Today, consumer packaged goods companies are accessing the Dathic model to pinpoint new and potential customers for their brands. The combination of the Dathic data sets and customer data is providing insights that already exceed what they thought possible.
What do you think the next ten years looks like for Seattle/Pacific Northwest startups?
I love this question! I wrote a Twitter thread about it recently. I think Seattle has a big decade ahead. The trend I find compelling is that software developers are becoming creatives as software has a ‘supply chain’ aspect to it where APIs and dev tools enable developers to be problem solvers instead of coders. Given Seattle’s legacy of innovation and the strong arts economy, I’m hopeful that these “tech creatives” and the creators in the arts community can see the similarities in producing big ideas and navigating ambiguity. I’ve been fascinated by the connection between ‘creative destruction’ in both visual art and tech startups for a decade.
What song is currently getting the most run on your Spotify/Apple Music?
I found a great trove of electronic ambient music this summer for star-gazing. Magnetic Fluid by Aleksander Dimitrijevic is my favorite in that rotation.
Favorite shoes?
My plum colored Ecco sneakers with a size zipper.
Favorite cooking ingredient?
Butter!
Anything else to say?
We don’t require a warm intro. Founders can fill out a form on our website, and we will respond.
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