Seattle, a city teeming with tech talent, has the potential to be a thriving startup hub. But what’s holding it back? Aviel Ginsberg, founder of Simply Measured (acquired by Sprout Social), managing director at Amazon’s Alexa Accelerator, general partner at Founders Co-op, and now co-founder of Foundations, believes the answer lies in fostering a stronger community and providing better support systems for founders.
In a recent episode of the Startup Project podcast, Ginsberg sat down with Nataraj to discuss his multifaceted career, the evolution of the Seattle startup scene, and the mission of Foundations, a new initiative aiming to be the anchor of Seattle’s VC ecosystem.
Listen to the full episode below, or keep reading for highlights from the conversation, edited for context and clarity. Subscribe to Startup Project for more insightful discussions at thestartupproject.io.
From Startup Weekend to Venture Capital
Ginsberg’s journey into the Seattle tech world began unexpectedly. Arriving fresh out of college during the 2007 recession, he quickly immersed himself in the burgeoning startup scene. A Startup Weekend, where he boldly claimed leadership of the design department, connected him with key players in the community, landing him a job at Aperture, a Founders Co-op portfolio company.
This experience provided invaluable insights into the inner workings of a startup, from coding and product design to customer interaction and product management. He eventually transitioned to founding his own company, Simply Measured, with backing from Founders Co-op.
Founders Co-op: Investing in the Pacific Northwest
Now a general partner at Founders Co-op, Ginsberg, alongside his partner Chris DeVore, focuses on pre-seed and seed stage investments in the Pacific Northwest. They target founders with a “Seattle DNA,” prioritizing those tackling unsexy business workflow problems over flashy consumer products.
The Importance of Founder Motivation
Ginsberg’s investment philosophy emphasizes founder motivation. He seeks individuals driven by an internal need to build and create, those who find fulfillment in the journey itself. This resilience, he believes, is crucial for navigating the inevitable ups and downs of startup life.
The Distortion of Opportunity Size
Ginsberg and Nataraj discuss the inflated expectations surrounding opportunity size during the recent boom. The pursuit of unicorns and decakorns, they argue, led to overvaluation and unsustainable business models. Ginsberg highlights the importance of recognizing that not every company needs to be a trillion-dollar behemoth. Sometimes, a successful acquisition is the best outcome, even if it means the product eventually gets shut down.
Foundations: A New Anchor for Seattle’s Startup Ecosystem
Foundations, Ginsberg’s latest venture, seeks to strengthen Seattle’s startup scene by fostering a community and providing resources for founders. Recognizing the need for connection and shared learning, Foundations provides a physical space, events, and an entrepreneur-in-residence program to connect founders with each other and with experienced mentors and investors.
What Seattle Needs to Thrive
Beyond Foundations, Ginsberg sees the need for more pre-seed funds and programs that help individuals transition from big tech companies to startups. He also emphasizes the importance of cultivating a network of angel investors who can provide quick, small checks based on their belief in the founder’s potential.
Consuming Wisdom: Aviel’s Recommendations
Ginsberg shares his current media consumption, including podcasts like All In, Rogan, and Jordan Peterson, as well as his love for sci-fi shows. He also highly recommends the book “The Courage to Be Disliked.”
Key Takeaway for Investors
Ginsberg’s advice to aspiring investors: Recognize the long feedback loops in investing. Focus on supporting founders and resist the urge to over-manage. Find other outlets for your builder’s energy and let the founders build.
To hear the full conversation and learn more about Aviel Ginsberg’s insights, check out the Startup Project podcast episode here. Subscribe on Spotify, Apple Podcasts, and YouTube.