David Tisch - Tech Investing Outside of Silicon Valley - [Invest Like the Best, EP.55]

My guest this week is David Tisch, who was instrumental in building and fostering venture capital investing in New York City. If you liked my conversation with Jerry Neumann--who, incidentally, introduced me to David--you are going to love this one. David was a co-founder at tech stars, New York's answer to Silicon Valley’s famous tech incubator Y Combinator. He now runs the Box Group, a prominent seed stage venture capital firm, which has looked at thousands of startups and invested in more than 200. We explore tech investing outside of Silicon Valley, the tech accelerator model, the evolution of early stage investing, and why the best companies may start coming out of non-traditional venture hubs. David does a great job of explaining how things have changed for technology startups and why certain strategies--especially those for acquiring customers--won't work nearly as well in the future. I learned a lot during this hour, and I think you will too. Please enjoy. For comprehensive show notes on this episode go to http://investorfieldguide.com/tisch For more episodes go to InvestorFieldGuide.com/podcast. To get involved with Project Frontier, head to InvestorFieldGuide.com/frontier. Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub. Follow Patrick on Twitter at @patrick_oshag Show Notes 2:16 – (First question) – Looking at David’s motivation and role in building up the venture capital tech investment scene in New York 6:14 – What David did to further the mission of fostering tech startups in New York, namely his work with TechStars 10:11 – What is Y Combinator and how does that differ from Tech Stars 13:02 – What is the procedure for getting into a startup incubator 17:08 – Most memorable applications 19:12 – What is the boot camp/incubator experience like 20:34 – What should future incubators be focused on to help develop the right ideas 23:46 – What aspects of the business should a start up be focused on in the beginning 26:46 – What got David interested in investing 28:47 – The challenges of launching new tech today and the colonization of identity 32:04 – Exploring David’s investing strategy 35:45 – Finding the consumer facing companies that can scale and provide a return for venture capitalists 38:03 – The problem of scaling up for start ups 39:20 – What business models does David prefer when making venture investments 40:53 – What’s important to look at when investing in other sectors, starting with Fintech 44:41 – Where does David think we are in the venture capital cycle 49:37 – How much does the exit strategy play into the initial seed investment 50:18 – David’s thinking on the portfolio of companies when picking an investment 52:48 – David’s biggest sin of omission 53:56 – Common personality traits among potential founders 55:24 – Is storytelling relevant for startups focused on the enterprise side of the business 56:07 – David’s story to convince founders to work with him 57:51 – biggest mistakes that David has seen 1:01:47 – What does it mean for our health that are time has become completely consumed by technology 1:03:58 – What trend has David most excited looking forward 1:06:44 – Kindest thing anyone has done for David Learn More For more episodes go to InvestorFieldGuide.com/podcast. Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub Follow Patrick on twitter at @patrick_oshag