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E182: Lessons from 17 Years at Menlo Ventures and Accel w/Tyler Sosin
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In this episode, I speak with Tyler Sosin, Board Partner at Menlo Ventures, where he focuses on investing in tech-enabled SaaS, fintech, marketplaces, and workflow tools. Tyler specializes in high-retention, annuity-driven “layer cake” businesses that benefit from network effects, data lock-in, replenishment channels, and switching costs. His objective is to identify companies with durable customer relationships and potential long-term value—businesses that even Warren Buffett might admire .
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Highlights:
- The power of vertical software and markets that start small but grow big
- Characteristics Tyler looks for in early-stage founders
- Misconceptions around TAM and the overlooked upside in niche markets
- Why customer lock-in and annuity-like business models matter
- Thoughts on growth at all costs vs. compounding sensibly
- Lessons from past investments like Flywire, Carta, and Indio
- What venture gets wrong about market sizing and competition
- How Villain balances elements of both VC and growth equity
- The underestimated strength of founders who’ve been burned before
-- Guest Bio: Tyler Sosin is a Board Partner at Menlo Ventures, investing across fintech SaaS, workflow tools, marketplaces, systems of record, and transaction processors. He seeks out efficient, compounding growth businesses with sticky customers and structural moats, such as Alloy.AI, BitPay, BlueVine, Bread Finance, Carta, Envoy, Everlaw, FiveStars, HomeLight, PillPack, Qualia, RealtyShares, Stance, and tCell.io.
He began his career at Accel Partners—based in London—for three years before joining Menlo. Tyler holds a B.A. in International Relations from Stanford University.
Our Podcast now receives more than 300,000 downloads a month. Are you interested in sponsoring an episode? Please email David Weisburd at [email protected].
#VentureCapital #VC #Startups #OpenLP #assetmanagement
-- Stay Connected: X / Twitter: David Weisburd: @dweisburd
LinkedIn: David Weisburd: https://www.linkedin.com/in/dweisburd/ Tyler Sosin: https://www.linkedin.com/in/tylersosin/
Links: Menlo Ventures: https://menlovc.com/team/tyler-sosin/
-- Questions or topics you want us to discuss on How I Invest? Email us at [email protected].
(0:00) Episode preview (1:37) Peter Thiel's perspective and the role of market power (5:12) Identifying potential villain companies in early stages (8:26) Successful strategies in product bundling and market control (12:44) Venture capital approach to small markets (19:11) Balancing growth and sustainability in startups (24:56) Historical impact and profitability of tech giants (27:37) The importance of collaborative thinking and networking in VC (31:03) Herd behavior and innovation in fund management (34:53) Vertical software companies: PE and growth equity interest (37:23) Debunking market size myths in startup success (42:36) Storytelling and scaling in startup growth (44:15) Strategies for expanding market reach in growth companies (48:56) Career advice from Tyler Sosin's perspective (51:00) The Thiel fellowship's influence on young entrepreneurs (51:40) Closing remarks182 episodes
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