Invest Like the Best with Patrick O’Shaughnessy
Business:Investing
My guests this week are Jeremy Levine, Kent Bennett, and Brian Feinstein. They are partners at one of the oldest and most storied venture firms in the world, Bessemer Venture Partners. Our conversation is split into two parts. First, we explore Bessemer itself. It’s over 100 years old and has a unique operating model with lessons for every investment firm in the market. We then discuss Jeremy, Kent, and Brian’s investing styles and outlook. What they look for in businesses, their thoughts on various sectors like vertical market software, and we close with a discussion about AI and defensibility. Please enjoy this great conversation.
Listen to Founders Podcast
Founders Episode 136 - Estee Lauder
Founders Episode 288 - Ralph Lauren
For the full show notes, transcript, and links to mentioned content, check out the episode page here.
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Invest Like the Best is a property of Colossus, LLC. For more episodes of Invest Like the Best, visit joincolossus.com/episodes.
Past guests include Tobi Lutke, Kevin Systrom, Mike Krieger, John Collison, Kat Cole, Marc Andreessen, Matthew Ball, Bill Gurley, Anu Hariharan, Ben Thompson, and many more.
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Show Notes
(00:03:14) - (First question) - The unique history of Bessemer and how the firm stays current
(00:08:55) - The role of heritage and cooperative partnership in Bessemer’s model
(00:14:36) - How giving each partner autonomy and commissions can lead to better personal and company outcomes
(00:17:18) - The extent of freedom a partner has in terms of the style of investments made
(00:20:38) - Retro-analyzing the effectiveness of their investment roadmaps and core insights
(00:25:10) - What conflict typically looks like in partners’ conversations and how they resolve it
(00:27:06) - How they enable their junior staff using apprenticeship and open dialogue
(00:31:31) - Their different taste in investment targets
(00:35:11) - How they each evaluate companies based on their unique interests
(00:42:32) - Their thoughts on valuations and how they have dealt with with run-ups in the tech market
(00:45:46) - What they anticipate in the future of early-stage investing
(00:49:43) - The significance of Centaur companies that have hit $100-million in revenue
(00:52:38) - The success of Bessemer’s writing and online content
(00:55:13) - Where the vertical market software industry is in its life cycle
(00:59:12) - How the next wave of innovation may revolutionize software or even depart from it
(01:02:33) - Advice they give to companies looking to prepare for future shifts in tech and AI
(01:04:46) - What excites them and what scares them within the development of LLMs
(01:08:18) - Defensibility of an LLM-based company, given the high level of competition
(01:10:39) - How their firm deals with terminating partners if and when they aren’t a good fit
(01:14:53) - The kindest thing anyone has ever done for each of them
Marko Papic - A Multi-Polar World - [Invest Like the Best, EP. 268]
Garry Tan - Unwrapping the Gift - [Invest Like the Best, EP. 267]
Eric Mandelblatt - Investing in the Industrial Economy - [Invest Like the Best, EP. 266]
Sebastian Kanovich - Powering Emerging Markets Payments - [Founder’s Field Guide, EP. 56]
Frank Slootman - Narrow the Focus, Increase the Quality - [Invest Like the Best, EP. 265]
Tim Flannery - Simplifying Fund Closing - [Founder’s Field Guide, EP. 55]
Joey Levin - Building an Anti-Conglomerate - [Invest Like the Best, EP. 264]
Peter Chernin - Betting on Passion - [Invest Like the Best, EP. 263]
John Pfeffer - Adapt and Evolve - [Invest Like the Best, EP. 262]
Geoffrey Moore - Building Gorilla Businesses - [Invest Like the Best, EP. 261]
Gavin Baker - The Cyclone Under the Surface - [Invest Like the Best, EP. 260]
Sam Englebardt and Richard Kim - Investing in Immersive Worlds - [Invest Like the Best, EP. 259]
Ricky Sandler - Building an Investment Compass - [Invest Like the Best, EP. 258]
Orlando Bravo - The Art of Software Buyouts - [Invest Like the Best, EP. 257]
Nick Saltarelli - One Foot in Front of the Other - [Founder’s Field Guide, EP. 54]
Jenny Johnson - Seven Decades of Investing Expertise - [Invest Like the Best, EP. 256]
Doug Colkitt - The Evolution of Markets - [Invest Like the Best, EP. 255]
Bill Gurley and Philip Rosedale - Back to the Future - [Invest Like the Best, EP. 254]
Francis Davidson - Design-led Hospitality - [Invest Like the Best, EP.253]
Niraj Shah - Developing Every Skill - [Invest Like the Best, EP. 252]
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