1Mby1M Virtual Accelerator Investor Forum: With William Hsu of Mucker Capital (Part 1) - Sramana Mitra

1Mby1M Virtual Accelerator Investor Forum: With William Hsu of Mucker Capital (Part 1) - Sramana Mitra


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Posted on Tuesday, Jun 26th 2018

Responding to a well-liked request, we at the moment are sharing transcripts of our investor podcast interviews on this new collection. The next interview with William Hsu of Mucker Capital was recorded in January 2018. 

William Hsu is the Co-founder and Companion at Mucker Capital, a Los Angeles-based fund that invests largely outdoors Silicon Valley and follows a extra fundamentals oriented strategy.

Sramana Mitra: Inform us concerning the fund. How massive is the fund? Inform us about your personal background. Let’s get to know one another and let’s introduce your to our viewers.

William Hsu: We're a $55 million seed-stage enterprise fund based mostly in Los Angeles. We make investments anyplace between 15 to 20 corporations a yr. We make investments on the very early levels. We will make investments anyplace from a two guys and a bit of serviette as excessive as tens of millions of dollars in annual income. We're about 50% shopper and 50% enterprise.

We truly make investments sometimes not within the Valley. About 50% of our portfolio is in Southern California. The opposite 50% is throughout america. I used to be born in Taiwan and immigrated to the US once I was 10 years previous. I spent most of my life within the Bay Space and went to high school at Stanford as an engineer. I graduated within the beginnings of the dot-com period round 1998. Like all of the naive web youngsters at the moment, I raised near $55 million to start out an organization that targeted on constructing SaaS for the business development business.

Then the market crashed in 2001. I had to get replaced. My VCs fired me and had individuals with grey hair to run the corporate. I went to enterprise faculty for a few years and began my profession over once more. I ultimately ended up working at AT&T as a SVP, Chief Product Officer for a division at AT&T.

In 2011, I left AT&T considering I used to be going to start out an web firm once more. As an alternative, I went with my companion to forming a enterprise capital agency. 5 years later, we're on our fourth fund. We have now about 75 portfolio corporations thus far.

Sramana Mitra: Let’s speak concerning the present portfolio. What have you ever invested in? How do you determine what to spend money on? I’d like to know your thought course of. As you speak concerning the highlights of your present portfolio, give us some window into why you selected to spend money on that exact firm. How did it evolve? In case you had any notable exits, you possibly can talk about that as properly.

William Hsu: A few of our portfolio corporations embrace corporations like Trunk Membership and Activity Rabbit. There’s Surf Air which his fairly well-known in California. There’s Service Titan, which is a big firm within the development business. We've an organization referred to as Honey which is in e-commerce.

How can we take into consideration investing? The standards we search for are groups which are nimble and agile. They should have the power to experiment and perceive the info that’s coming from the market and shortly pivot. For that, the iteration velocity is tremendous necessary to us as a result of we make investments so early within the founding cycle.

Sometimes, regardless of the unique speculation of the corporate is would in all probability be improper. That’s okay so long as the entrepreneurs are mild on their ft and may iterate out once more. We search for groups that aren't solely absolutely practical but in addition have a product individual and probably a go-to market individual.

We search for groups which are very low on burn to allow them to have as a lot time as they want. The quicker you possibly can run and the quicker you'll be able to run, the extra probably you'll be able to create success. We search for that within the very starting as a result of we’re so early within the funding cycle.