Today's episode explores three ideas that caught my attention:
Immigrant founders outperform statistically - Patrick's research shows a strong correlation between immigrant status and startup success. Makes me wonder how much untapped potential exists in commonly overlooked founder demographics.
The empathy imperative - Treating every "no" with respect is SO important because you never know where founders will be in a few years.
Sometimes revolution starts with regulation - A single 1968 ruling unleashed institutional capital into VC, which Patrick mentioned has enabled roughly 75% of public company value today. Got me wondering what current rules limit tomorrow's breakthroughs.
I explore these ideas and more with Patrick Sweeney, Principal at Elevate Ventures.
Patrick Sweeney brings a unique blend of quantitative rigor and founder empathy to venture investing, informed by his time as a Harvard Business School researcher studying the economic impact of venture capital. Now as Principal at Elevate Ventures, he leads investments for Indiana's $225M evergreen fund while championing the transformative power of innovation. His journey from energy trading to academic research to venture capital gives him a distinctive perspective on how capital allocation can drive both financial returns and societal progress.
During our conversation, Patrick shares:
A practical approach to balancing quantitative and qualitative factors in early-stage due diligence, particularly around customer value propositions.
Insights on the microchip industry's strategic importance and why maintaining manufacturing capabilities is critical for economic stability.
A framework for thinking about product-market fit through three key indicators: positive unit economics, demonstrated demand, and scalability potential.
What We Cover:
00:00 Introduction
01:02 Meet Patrick Sweeney
04:02 Patrick's Venture Capital Journey
06:16 Ellen Pao vs. Kleiner Perkins Case
08:55 Diversity in Venture Capital
10:45 The Art and Science of Investing
13:07 Patrick's Mission and Motivation
18:22 Insights from Elevate Ventures
32:56 Conclusion and Final Thoughts
Listen now on Spotify, Apple Podcasts, and YouTube.
Connect with Patrick
Connect with Andrew
Newsletter: https://thediligentobserver.substack.com
Website: https://pitchfact.com/
Stuff We Reference
Goose the Market: https://www.goosethemarket.com/
Paul Gompers: https://www.linkedin.com/in/paul-gompers-09203197/
Shark Tank: https://abc.com/show/535e2b07-18a9-4d94-9803-9ed8257b9d23
Kleiner Perkins: https://www.kleinerperkins.com/
Larry Warnock: https://www.linkedin.com/in/larrywarnock/
Check out my full interview with Larry here:
Venus Aerospace: https://www.venusaero.com/
Venture Capital’s “Me Too” Moment: https://corpgov.law.harvard.edu/2021/07/13/venture-capitals-me-too-moment/
The Economic Impact of Venture Capital: https://www.gsb.stanford.edu/faculty-research/working-papers/economic-impact-venture-capital-evidence-public-companies
Chip War by Chris Miller: https://www.amazon.com/Chip-War-Worlds-Critical-Technology/dp/1982172002
Brook Stroud: https://www.linkedin.com/in/brook-stroud/
Check out my full interview with Brook here:
IEDC: https://iedc.in.gov/
Elevate Venture Funds: https://elevateventures.com/resource-category/policies/
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All opinions expressed are personal and may not reflect the views of the individual’s organization or of The Diligent Observer. Not investment advice.
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