Decentralizing Silicon Valley: The Rise of the Outsider VCs and the Founders They Invest In
Jeremy Neilson talks with Nick Moran about his path to becoming a VC fund manager of a $42 M fund. As he says, despite venture capital being called an apprenticeship business, he broke in without having worked at a VC firm or having a successful tech exit. For him, his clever side door was a podcast. He talked about jumping in and writing investor memos, doing SPVs, and the importance of getting at bats.
In this Conversation:
Nick now has an established brand and a strong community of deal flow and investors that believe in his vision, with a track record to prove it. While his recently launched fund 2 has over $40 M in committed capital, Nick says New Stack will never go away from a hybrid model of SPVs and a blind pool. Not only does it provide strategic advantages for New Stack, but there is strong LP demand for SPV access. Nick talks about how many of his LPs expect it and use the fund as a funnel for the deals they want to co-invest in with NewStack SPVs.
On Building Relationships and Trust Through Media
"You're able to kind of build relationships with people without having one‑on‑one conversations with them. We spend 45 minutes with a hundred thousand people a week, and they end up feeling like they know you to a certain degree. After they listened for a while, that builds some trust that gives them enough trust to at least look at your deals and over time, slowly but surely, many of those investors became LPs in our SPVs and our funds."
Nick Moran is the Founder and General Partner at New Stack Ventures, a $42 M early-stage VC fund focused on outsiders, specifically investing between the coasts. He’s also the founder and host of the first VC podcast, The Full Ratchet, which he leveraged to break into VC and start doing SPVs despite a background in non-finance, non-tech corporate america. He was one of the first SPV syndicate leads, having done dozens of deals prior to launching New Stack’s first blind pool fund. After his $6 M fund 1 exceeded top decile performance, New Stack raised a 7x larger vehicle, the fund they are on now. He still employs a hybrid SPV/blind pool structure with New Stack today.
New Stack was founded in 2015 with a mission to invest in the Outsiders. Founder, Nick Moran, launched the first VC podcast, one of the first AngelList Syndicates, and subsequently raised their first VC fund. After Fund 1 ($6M) exceeded top decile performance, the team raised a 7x larger vehicle ($42M) to accelerate their strategy. The firm continues to innovate, building software including VC Rank and the Seeker – all with the goal of identifying and partnering with the most transformational tech leaders of our generation.
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