We believe there is a need for a new, additional type of venture capital that helps companies at scale pursue innovation and step function growth long past their IPOs.
Throughout our careers as entrepreneurs, investors, and directors, we have been students of why some tech companies sustain as market leaders. Often people view these companies from the outside-in as perfect, uninterrupted growth stories that were almost pre-ordained. However, we realize that behind these mythical growth stories are many hard-fought cycles of invention and reinvention. Invention is when a company builds a new product and achieves growth in an adjacent market, such as Amazon developing AWS. Reinvention is when a company has to adapt its core products and services to continue growing in an existing market, as Netflix did moving from DVDs to streaming.
For many public tech companies -- especially mid-cap sized -- these cycles can prove challenging to navigate while maintaining investor alignment. We went through our own invention and reinvention cycles while public at Zynga and LinkedIn, and it wasn’t easy.
We are excited to be a new kind of venture capital partner at the table for one of the many tech companies set to go public over the next few years and to help it maintain a growth mindset, be bold, and go for it in the face of pressure to deliver quarterly results.
We hope our experience, ideas, and insights can make a difference as we partner with a founder and CEO as they build a market-leading company that delivers products and services that matter in people’s lives.
Reid Hoffman and Mark Pincus