Ignite VC: Investing in the Next Wave of AI-Driven Startups with Xan Wood | Ep147

Ignite: Conversations on Startups, Venture Capital, Tech, Future, and Society

In this episode of the Ignite Podcast, Brian Bell sits down with Xan Wood, investor at Canvas Ventures, to explore his unconventional path into venture capital. From building an events business in Edinburgh to working in private equity across Asia, Xan shares how his diverse global experience led him to co-found Courtyard Ventures at Berkeley and ultimately join Canvas, where he now leads Series A and B investments in fintech, digital health, and AI.

The conversation dives into the differences between early-stage venture and traditional private equity, highlighting how people-driven problem-solving is at the core of great investing. Xan unpacks how AI is enabling a new generation of capital-efficient startups—what he calls “Velociraptors”—companies reaching $100M+ ARR with fewer than 50 employees. He also discusses how Canvas wins competitive rounds, supports founders through tough times, and focuses on sectors where the firm has deep domain expertise and proven results.

Brian and Xan touch on critical VC dynamics, from decision-making and founder evaluation to fund construction and follow-on strategy. The episode is packed with insights on building durable businesses, navigating exits, and why speed of execution is more important than ever in a world where AI is lowering the cost of intelligence across every industry.

Chapters:

Welcome & Guest Introduction (00:00 – 00:38)

Xan’s Global Journey Into Venture (00:39 – 02:28)

Comparing Emerging Markets PE to U.S. VC (02:29 – 03:55)

The Appeal of People-Driven Investing (03:56 – 05:23)

Founding Courtyard Ventures at Berkeley (05:24 – 07:14)

Hustling into Deals with a Small Fund (07:15 – 09:06)

Lessons from Raising & Deploying a Student-Run Fund (09:07 – 10:48)

Evaluating Luck vs Skill in Venture (10:49 – 13:22)

Decision-Making Discipline & Investment Memos (13:23 – 15:04)

Power Laws, Fund Math, and LP Preferences (15:05 – 17:12)

Transitioning to Canvas Ventures (17:13 – 18:49)

Choosing Apprenticeship Over Going Solo (18:50 – 20:01)

From Pre-Seed to Series A & B: What Changes (20:02 – 22:11)

The Series A Data Shift and Market Expectations (22:12 – 23:58)

What Defines Pre-Seed? Semantics and Valuations (23:59 – 25:06)

Why Valuation Sensitivity Beats Stage Labels (25:07 – 26:16)

Winning Competitive A & B Rounds (26:17 – 28:01)

Follow-On Strategy and Fund Structure at Canvas (28:02 – 29:29)

Preparing Startups for Exit: M&A as the Default Path (29:30 – 30:50)

Canvas Fund History & Sector Focus Shift (30:51 – 32:05)

Why Canvas Is Doubling Down on Fintech, Digital Health, and AI (32:06 – 33:08)

Investing in Healthcare: Navigating Incentives (33:09 – 35:10)

AI-Powered Healthcare and Reducing Burnout (35:11 – 36:41)

Savvy Wealth & Vertical SaaS in Fintech (36:42 – 39:23)

The Rise of Human-Enabled Tech in Wealth Management (39:24 – 40:59)

AI as a Tsunami: Lowering the Cost of Intelligence (41:00 – 42:03)

Velociraptor Startups: Capital Efficiency at Scale (42:04 – 44:00)

Durability vs Speed in AI-Enabled Startups (44:01 – 45:15)

How Venture Fund Size Shapes Strategy (45:16 – 46:55)

Power Laws, Return Expectations & Venture Models (46:56 – 48:10)

Why Canvas Stays U.S.-Focused (48:11 – 48:50)

The Rebirth of San Francisco as an Innovation Hub (48:51 – 49:19)

Rapid Fire: Founder Traits, Favorite Startups & Resources (49:20 – 51:20)

The Power Law Book & Silicon Valley's Secret Weapon (51:21 – 52:12)

Misconceptions About Venture Capital (52:13 – 53:40)

Productivity Tools: Granola AI & Workflows (53:41 – 54:52)

Global Problem Solving & Moonshots with Tech (54:53 – 56:12)

Closing Thoughts & Where to Find Xan (56:13 – 01:03:11)

Thanks to ⁠⁠⁠⁠Byldd ⁠⁠⁠⁠for sponsoring this episode! Byldd helps startups rapidly build and launch revenue-generating SaaS and marketplace businesses with cost-effective, scalable solutions - ⁠⁠⁠⁠Get Started Here⁠⁠⁠⁠.