20VC: The 2 Core Roles Played By The Best Seed Investors Today, What To Look For In Potential Co-Investors & Why Seed Funds Can Grow Ownership in Their Best Companies Across Rounds with Ron Bouganim, Founder @ Govtech Fund
Ron Bouganim is the Founding Partner @ The Govtech Fund, the first-ever venture capital fund dedicated to government technology startups. To date, he has backed some incredible category leaders including mark43, Neighbourly, MindMixer and SeamlessDocs just to name a few. Prior to the Govtech Fund, he was Accelerator Director @ Code for America and was an active angel investor and advisor working with more than twenty startups including ShareThrough, HelloSign, PagerDuty, and Close.io.
In Today’s Episode You Will Learn:
1.) How Ron made his way into the world of technology and startups and became angel investing? How that led to the founding of Govtech Fund and the belief in the space today?
2.) There is the notion that there many challenges to investing in Govtech and scaling companies in the space, how does Ron respond to the suggestion the sales cycles when selling to government are too long for startups to navigate successfully? How does Ron respond to the suggestion that the growth rates in the space are to low for venture returns? How does Ron respond to the suggestion that founders in the space are inherently older as only they have experienced the problems of government tech?
3.) Why does Ron believe that a vertically focused fund is the right strategy is creating a massively outperforming fund? How does Ron respond to the possibility of missing moonshots in alternate categories? What does Ron most look for in the co-investors that he invests with? What do they bring to the table?
4.) What does Ron believe are the 2 fundamental roles of a seed investor today? How does that differ from previous generations of seed funds? Why does Ron believe that fundraising and hiring help is now merely table stakes? What else can seed investors do to meaningfully move the needle for their portfolio?
5.) Why does Ron advocate for a highly concentrated portfolio? How does Ron respond to LP concerns around a lack of diversification? Does Ron believe that you can grow ownership of your best companies over subsequent rounds? What is the sign of success for Ron when the founder comes back for re-financing?
Items Mentioned In Today’s Show:
Ron’s Fave Book: Leonardo Da Vinci by Walter Isaacson
Ron’s Most Recent Investment: Sema: Automated Code Maintenance