Collin Wallace is a partner at
Lobby Capital with 20+ years as an engineer, inventor, operator, and investor. Before Lobby, he was Managing Director of Techstars Silicon Valley, launching the first two Bay Area accelerator programs with JPMorgan and eBay. He founded FanGo (Techstars S10)—acquired by Grubhub in 2011, where he became Head of Innovation (OrderHub + pre-IPO patents)—and later co-founded ZeroStorefront (YC W19), acquired by Thanx in 2022. Collin advises the Roelof Botha & Huifen Chan Innovation Program, co-teaches Startup Garage at Stanford GSB, has run two YC Demo Day Funds, and has invested in 80+ startups (e.g., Payjoy, Landed, Mosaic Voice, Postscript, Vellum).
In this episode, Collin gives founders some great advice: you’re running two businesses (product for customers, equity for investors). Fund math in concentrated portfolios means ~2 of ~20 bets must carry returns; with dilution to ~10% at exit, winners need multi-billion-dollar potential. Sequence your proof: Pre-seed = prove value; Seed = prove people pay (repeatably); Series A = scale what’s already repeatable. Don’t scale misses (the Steph Curry test). And match capital to your vehicle - venture is rocket fuel: perfect for rockets, destructive for "pickup trucks".
Key Topics Covered:
- Running a startup involves selling to customers and investors.
- Different VCs have varying expectations based on fund size and strategy.
- Founders should tailor their pitches to the specific needs of investors.
- Understanding investor dynamics can improve fundraising success.
- Successful founders diverge from conventional thinking in their industries.
- Ambition and hustle are key traits for founders.
- Expectations change significantly after receiving funding.
- Consistency and repeatability are crucial for scaling a startup.
- Community engagement can foster innovation and collaboration.
- The back office is essential but often seen as a distraction.
Chapters
(
00:00) Introduction to Colin Wallace and His Journey
(
02:14) The Shift in Growth Expectations for Startups
(
05:03) Understanding Investor-Fit and Fundraising Dynamics
(
11:12) The Importance of Founder Attributes
(
17:15) Navigating the VC Landscape and Expectations
(
21:03) Post-Funding Realities for Founders
(
22:40) Understanding Seed Capital and Series A Expectations
(
25:19) The Evolution of Funding: Series B and C
(
29:05) Coaching the Next Generation of Founders
(
32:09) Building the Back Office: The Unsung Hero
(
35:42) Community Building and Inclusive Events
Where to find
Collin Wallace:
Where to find David Phillips:
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