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When IVP lately announce the completion of its 18th fund , I called Eric Liaw , a longtime cosmopolitan partner with the development - stage firm , to ask a few questions . For starter motor , wringing $ 1.6 billion in capital commitment from its investor right now would seem a good deal more challenging than garnering commitments during the frothier day of 2021 , when IVP declare a $ 1.8 billion vehicle .
I also wondered about succession at IVP , whose many wager admit Figma and Robinhood , and whose founder and early investor still loom large at the firm — both figuratively and literally . A recentFortune storynoted that pictures of steady founder Reid Dennis remain spread out “ in all sorts of places throughout IVP ’s San Francisco office . ” Meanwhile , icon of Todd Chaffee , Norm Fogelsong and Sandy Miller — former world-wide mate who are now “ advisory partners ” — are mix in with the firm ’s general partners on the business firm ’s website , which , visually at least , make less elbow room for the current generation .
Not last , I wanted to talk with Liaw about Klarna , a portfolio company thatmade headlineslast month when a behind - the - scenes dissonance over who should sit on its board slop into public survey . Below are parts of our confab , edited for duration and limpidity . you’re able to listen to the longer conversation as a podcasthere .
Congratulations on your newfangled store . Now you could relax for a distich of months ! Was the fundraising summons any more or less unmanageable this time given the market ?
It ’s really been a jerky full point throughout . If you really rewind the clock , back in 2018 when we recruit our sixteenth store , it was a “ normal ” environs . We raised a somewhat bigger one in 2021 , which was not a normal environment . One thing we ’re beaming we did n’t do was raise an extravagant amount of capital relative to our strategy , and then deploy it all very quickly , which other family line in our industry did . So [ we ’ve been ] pretty consistent .
Did you take any money from Saudi Arabia ? Doing so has become more acceptable , more widespread . I ’m enquire if [ Public Investment Fund ] is a fresh or survive LP .
We do n’t typically notice on our LP foundation , but we do n’t have capital from that region .
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Speaking of regions , you were in the Bay Area for years . You have two degree from Stanford . You ’re now in London . When and why did you make that move ?
We act about eight months ago . I ’ve actually been in the Bay Area since I was 18 , when I came to Stanford for undergrad . That ’s more yr ago than I care to include at this gunpoint . But for us , expansion to Europe was an constitutive extension of a scheme we ’ve been pursuing . We made our first investment in Europe back in 2006 , in Helsinki , Finland , in a troupe called MySQL that was acquired subsequently by Sun [ Microsystems ] for a billion dollars when that was not run - of - the - mill . Then , in 2013 , we enthrone in Supercell , which is also base in Finland . In 2014 , we became an investor in Klarna . And [ at this point ] , our European portfolio today is about 20 troupe or so ; it ’s about 20 % of our fighting portfolio , spread over 10 different countries . We felt like put some base on the earth was the correct move .
There has been a lot of drama around Klarna . What did you make of The Information ’s study about [ former Sequoia investor ] Michael Moritz versus Matt Miller , the Sequoia partner who was more recently map the house and has since been replaced by another Sequoia collaborator , Andrew Reed ?
We ’re humble investor in Klarna . We are n’t active in the board discussions . We ’re excited about their business organization performance . In many ways , they ’ve had the bad of both worlds . They file publicly . They ’re subject to a flock of examination . Everyone see their number , but they do n’t have the currency [ i.e. , that a in public traded company enjoy ] . I think [ chief operating officer and co - founder ] Sebastian [ Siemiatkowski ] is now much more undefended about the fact that they ’ll be a public entity at some item in the not - too - distant future , which we ’re frantic about . The reporting , I guess if accurate , I ca n’t get behind the motive . I do n’t sleep together incisively what befall . I ’m just happy that he put it behind them and can focus on the business .
Klarna ’s fiscal glow - up is my favorite story in tech mighty now
You and I have talked about unlike countries and some of their respective strengths . We ’ve talked about consumer startups . It brings to mind the social mesh BeReal in France , which is reportedly seem for Series C financial support right now or else itmight sell . Has IVP kicked the tires on that company ?
We ’ve researched them and spoken to them in the yesteryear and we are n’t presently an investor , so I do n’t have a lot of visibility into what their current scheme is . I think social is gruelling ; the dirty money is massive , but the way to get there is pretty laborious . I do consider every few years , companies are able to constitute a foothold even with the strong point of Facebook - slash - Meta . Snap continues to have a strong pulling ; we endue in Snap pretty early on . Discord has cut up out some space in the market for themselves . Obviously , TikTok has done something jolly transformational around the world . So the swag is handsome but it ’s backbreaking to get there . That ’s part of the challenge of the fund , investing in consumer apps , which we ’ve done , [ figuring out ] which of these rocket ship has enough fuel to discover through the air and which will descend back down to land .
Regarding your Modern fund , that Fortune story noted that the firm is n’t named after father Reid Dennis as proof that it was build up to survive him . Yet it also noted there are pictures of Dennis everywhere , and others of the firm ’s preceding better half , and now advisor , are very prominently featured on IVP ’s internet site . intravenous pyelography tattle about making way for young partners ; I do marvel if that ’s really happening .
I would say without head , it ’s happening . We have a strong culture and custom of providing citizenry in their careers the chance to move up in the organization to the high echelon of the general partnership . I ’m fortunate to be an instance of that . Many of my partners are , as well . It ’s not entirely the way of life at the firm , but it ’s a literal chance that people have .
We do n’t have a manage married person and we do n’t have a CEO . We ’ve had people accede the firm , serve up the business firm and our LPs , and also as they get to a unlike point in their lives and career , take a step back and move on to unlike things , which by definition does make more way and responsibility for hoi polloi who are younger and now are attain that prime old age in their careers to help carry the institution forward .
Can I ask : do those advisers still receive carry ?
you could necessitate , but I do n’t want to get into economics or thing along that attribute . So I ’ll quietly decline [ that question ] . But we do evaluate their input and advice and their contribution to the business firm over many years .
There ’s obviously a valuation reset going on for every company seemingly that ’s not a big language model caller , which is a hatful of companies . I ’d guess that give you easier entree to top companies , but also hurts some of your existing portfolio companies . How is the business firm navigating through it all ?
I recall in terms of companies that are raising money , the ones that are most bright will always have a choice , and there will always be competition for those rounds and thus those rounds and the evaluation associated with them will always feel expensive . I do n’t recall anyone has ever touch a great venture outcome feeling like , “ Man , I get a steal on that deal . ” You always feel slightly uncomfortable . But the opinion in what the company can become first that feeling of discomfort . That ’s part of the fun of the job .
