Ep. 66: Investing in Thunder Lizards to Build Compounding Luck with VC Mike Maples of Floodgate
The startups that become really big, really fast are capitalist mutations or ‘Thunder Lizards’ that force the world to react to their agenda. Their founders refuse to accept the world as is and write their own rules, rather than conforming to the systems in place. This is how VC Mike Maples identifies the entrepreneurs he wants to support, the Prime Movers he can serve as not just an investor but a coconspirator.
Mike is the founding partner at Floodgate, a venture capital fund focused on backing Prime Movers before others believe. Mike has been on the Forbes Midas List since 2010, and his investments include Twitter, Twitch.tv, ngmoco, Weebly, and Lyft, among many others. Prior to his career in VC, Mike founded two successful startups of his own, Tivoli Systems and Motive. He earned his MBA from Harvard Business School.
Today, Mike joins us at Boost to share the concept of the ‘Thunder Lizard,’ and explain why he prefers to work with Prime Movers. He discusses how he got involved with venture capital, who he goes to for advice, and his approach to cultivating humility. Mike offers insight around the time value to decision-making and the idea of progress by way of competing alternatives. Listen in to understand cryptocurrency’s potential to make trust free and get Mike’s advice for aspiring VCs.
Topics Covered
The concept of the ‘Thunder Lizard’
Great startups = capitalist mutation
Force world to react to their agenda
Why Mike prefers to work with Prime Movers
Don’t accept world as is
Serve as coconspirator (vs. investor)
Mike’s path to venture capital
First job as professional calligrapher
Involved in two successful startups
Visit to Sequoia Capital inspired move to Silicon Valley
Who Mike goes to for advice
Father (think big, create value)
David Marquardt, Kevin Compton, Bruce Dunlevie & Mike Moritz
Mike’s approach to decision-making
Two kinds: 51/49 and 70/30
See as product with ship date
Mike’s advice for aspiring VCs
Must find top 10 companies in given year, add value
Put self in places with high probability of getting lucky
Adopt emergent strategy as opposed to deliberate
How Mike cultivates humility
Pass on company that succeeds, take founder to lunch
Seek opportunities not to ‘breathe own fumes’
Mike’s take on the crypto space
Potential to make trust free (vs. expensive intermediary)
Decentralized business creates ‘wealth of the commons’
Mike’s insight on the job of technology
Bring ‘undecideds’ forward
Make case for abundance
The current problem with currencies
Manipulated for political reasons
No ability to exit = no power/voice
‘Forward progress involves choice among competitors’
Connect with Mike
Floodgate http://floodgate.com/
Floodgate on Twitter https://twitter.com/floodgatefund
Mike on Twitter https://twitter.com/m2jr
Mike on LinkedIn https://www.linkedin.com/in/maples
Resources
Mike on The Tim Ferriss Show https://tim.blog/2017/12/16/the-man-who-taught-me-how-to-invest/
Exit, Voice, and Loyalty: Responses to Decline in Firms, Organizations, and States by Albert O. Hirschman https://www.amazon.com/Exit-Voice-Loyalty-Responses-Organizations/dp/0674276604
Connect with Boost VC
Boost VC Website https://www.boost.vc/
Boost VC on Facebook https://www.facebook.com/boostvc/
Boost VC on Twitter https://twitter.com/BoostVC
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