The Best Venture Firm You’ve Never Heard Of: Uncovering Unconventional Founders and Investing in Overlooked Geographies

The Best Venture Firm You’ve Never Heard Of: Uncovering Unconventional Founders and Investing in Overlooked Geographies

In the world of venture capital, success often hinges on finding the right founder – someone with unreasonable ambitions, astonishing clock speed, and a hunger that portends a deep, personal unease. The best venture firms understand that the founder is not merely important; they are the only thing that matters. One such firm is Hummingbird, a venture firm that has made a name for itself by backing outlier founders in unusual geographies.

Hummingbird's success story begins with an investment of just $5 million that yielded a return of $276 million – a gross multiple of 54.4x. This exceptional return came from backing a founder who possessed an intensity and clock speed that set him apart from others. It was clear that he was willing to go to great lengths to succeed, even swimming across the Bosphorus every day if necessary.

But what sets Hummingbird apart from other venture firms is its ability to identify and connect with unconventional founders. They look for individuals who defy societal norms and possess a level of masked autism. This discrepancy, which they categorize as a level of masked autism, often leads to exceptional thinking and a unique approach to solving problems.

One such founder that Hummingbird backed was a woman named Mutlu. Despite the nascency of her project, Hummingbird was keen to understand her projections. When asked about the revenue she would generate in the first year, Mutlu confidently replied, "One hundred million." Her answer, "Because I will," showcased her determination and unwavering belief in herself. It was this kind of mindset that caught the attention of Hummingbird and led them to invest in her.

Hummingbird's approach to investing is not without its risks. They understand that founders may not always take their advice – and that's okay. In fact, the good ones rarely do. Hummingbird's founder, Van den Brande, learned this lesson early on and it proved to be instrumental in his investing career. By reserving capital for the years after the dotcom bust, he avoided an early demise and was able to raise a €31 million follow-on vintage.

To further solidify their approach, Hummingbird has developed a precise strategy that focuses on identifying founders in overlooked geographies and sectors. They believe that unreasonable, brilliant, strange, and damaged people make the best founders. These individuals often emerge in unconventional places, away from the spotlight of traditional tech hubs.

But what traits do Hummingbird look for in founders? They believe that an experience with trauma is predictive of success. The best founders have often faced adversity and come out stronger on the other side. They also observe a connection between exceptional entrepreneurs and some degree of Autism Spectrum Disorder (ASD), which may come with associated traits like bipolar disorder and dyslexia. This unique cognitive orientation often leads to out-of-the-box thinking and unconventional approaches to problem-solving.

Hummingbird's approach to hiring is just as unconventional as their investment strategy. They seek out individuals who have overcome challenges and have a chip on their shoulder. They are not interested in cookie-cutter resumes or traditional backgrounds. Instead, they ask questions like, "What was your childhood like? How did you do in school? Were you a good student?" These questions provide insights into a candidate's journey and their ability to overcome obstacles.

In the world of venture capital, it's not just about finding the right founder – it's also about finding the right investors. Rather than targeting large institutions, Hummingbird focuses on winning over high-net-worth individuals and the founders of its best-performing investments. This approach allows them to build a network of like-minded individuals who understand and appreciate their unconventional approach.

So what can aspiring founders and investors learn from Hummingbird's success? Here are three actionable pieces of advice:

1. Embrace your uniqueness: Don't be afraid to be different. Unreasonable, brilliant, strange, and damaged people often make the best founders. Embrace your quirks and use them to your advantage.

2. Overcome adversity: Use your experiences with trauma and challenges as fuel for success. Adversity often breeds resilience and determination – qualities that can set you apart from the competition.

3. Trust your instincts: While advice from external sources can be valuable, don't be afraid to filter out what doesn't resonate with you. Trust your instincts and have confidence in your own abilities.

In conclusion, Hummingbird is a venture firm that has achieved remarkable success by investing in outlier founders in overlooked geographies. Their unconventional approach, focus on unique traits, and ability to identify exceptional talent have set them apart in the world of venture capital. By embracing the qualities that make us unique and overcoming adversity, we can all learn valuable lessons from Hummingbird's story.