- Startups - Rob Hayes of First Round Capital - TWiST #249

TL;DR

Rob Hayes, a venture capitalist from First Round Capital, discusses his investment strategy and what he looks for in entrepreneurs during a podcast interview on This Week in Startups.

Transcript

today's episode of this weekend startups is brought to you by trata the leader and crowd-sourced online advertising marketing and by ii minutes lawyers who focus on forming and maintaining corporations and llcs hey everybody it's this week in startups i'm jason calacanis your host and today we have an amazing guest Rob Hayes's with us he's a ventur... Read More

Key Insights

• 😤 First Round Capital focuses on being the first institutional investor in startups and looks for entrepreneurs who have surrounded themselves with qualified team members.
• 🤩 Growth is the key driver of success for startups, and Hayes looks for entrepreneurs who have a clear plan for growth and user acquisition.
• 🧑‍🏭 Design and intuitive user experience are important factors in the success of a product.
• 👁️‍🗨️ The startup environment is showing some signs of a potential bubble, but it is difficult to predict when it will occur.

Questions & Answers

Q: What are some qualities that Rob Hayes looks for in entrepreneurs during the investment process?

Hayes looks for entrepreneurs who have surrounded themselves with qualified team members and demonstrate a clear plan for growth and user acquisition. He also values design and intuitive user experience in a product.

Q: What is the key driver of success for startups according to Hayes?

Hayes believes that growth is the key driver of success for startups. Those that can achieve rapid user acquisition and scaling are more likely to be successful.

Q: How does Hayes view the current startup environment in terms of a potential bubble?

Hayes believes that we are on our way to a bubble but cannot predict exactly when it will happen. He points to indicators such as increased traffic and reservations at restaurants as signs of a potential bubble.

Q: What role does ownership threshold play in venture capital investments?

Traditional venture capital firms aim to own a certain percentage of a company to ensure significant returns in case of a successful exit. Hayes, however, focuses more on the level of involvement and support he can provide as an investor.

Summary & Key Takeaways

• Rob Hayes has invested in over 100 companies, including well-known companies like Uber and Square.

• First Round Capital focuses on being the first institutional investor in startups and looks for entrepreneurs who have surrounded themselves with qualified team members.

• Hayes believes that growth is the key driver of success for startups and looks for entrepreneurs who have a clear plan for growth and user acquisition.

• He also emphasizes the importance of design and intuitive user experience in a product.