How a Former Immigrant Operator Broke into Silicon Valley VC, and What he Looks for When Investing
I had the pleasure of interviewing Amir Kabir, partner at AV8 Ventures. Amir has been an entrepreneur, operator and investor with over 15 years of experience, working with early and mid-stage companies on financing, partnerships and strategic growth initiatives.
His background and career span over 3 continents, where he was exposed to different people, cultures and regions that shaped his global mindset.
At AV8 Ventures, Amir leads the Fintech and Insurtech practice, where he looks for entrepreneurs that are resilient and ambitious about the problems they are solving.
Thank you so much for joining us!
How did you break into tech investing?
From a very young age I was fascinated with technology. So much so that I assembled my own PC when I was 14. I truly fell in love with building things and realized that it simultaneously fueled my curiosity and creativity. After graduating college in Germany, I began my career as a network engineer, after which I went on to work at an enterprise software startup, where I held several roles in sales, business development and product management until acquisition. The opportunity allowed me to strengthen my technical skills, but most importantly to understand people.
As an immigrant, adversity is inherent to pursuing a successful, meaningful life. As a first-generation American, I understand the challenges one must overcome on the path to success as I encountered them regularly. When I came to the US a decade ago, the odds were stacked against me. Breaking into tech investing is not a typical path, specifically for a Silicon Valley “outsider” that didn’t graduate from an ivy league school.
Fortunately, I came across people who saw something in me, appreciated my non silicon valley tech background, and they took chances on me. As a result, I was able to work for several venture funds on the east coast, before making my way to San Francisco, where I was an investment director and founding team member at Munich Re Ventures where I led and managed investment efforts for two of the funds. My journey eventually led me to where I am now, the newest partner at AV8 Ventures, leading the Fintech practice.
What are you on the lookout for, both in terms of startups as well as entrepreneurs?
I am interested in anything related to financial services, be it insurance, core banking, alternative credit, web3, etc. Generally, I look for companies that are reinventing legacy financial services, consumer financial products and enterprise technology, while looking for founders who have an intriguing story to tell and are passionate about the problem that they’re solving.
When it comes to deciding whether to invest, I try to answer a few core questions:
- Is the team obsessive about what they are building, and does the team have a unique advantage, or non-obvious insights?
- Is the product differentiated enough to make a difference in a large addressable market?
- If this works, what can it be?
- Are there any regulatory tailwinds that can help the company succeed?
- Lastly, and most importantly, are these the people I see myself working with for the next decade?
While investing is not a linear process and nuances exist as they relate to each of these questions, the last question however is non-negotiable for me.
What has been your biggest challenge when it comes to finding the “right deals”?
I focus on the financial services sector and have built a network that I tap into. However, sourcing new deals takes up at least half of my time, and gaining access to relevant deals can be challenging at times.
I believe venture capital comes down to a number of core ideations specifically around deals:
- Does an investor have the network, knowledge or both to see every single opportunity within their focus area?
- If so, are they able to pick the right deals out of the several thousand deals they see?
- A very important one is whether they are able to get into the right deals and get the allocation that is meaningful for their fund?
- And finally, if they are able to get into the right deals, what value can they provide to the founder, team and other investors at the table to make it a big outcome for everyone?
I noticed that you’re on dozens of startup boards — very impressive. Why would founders want to work with you, and how would you build trust with them?
I spent most of my life in entrepreneurship either as an operator or early stage startup employee. I had my own e-commerce business when I was 20 years old. After graduating from university, I joined an early stage startup in the enterprise software space, building business communications software for fortune 500 companies within Europe. I was fortunate enough to work all over Europe and experience diversity firsthand. In my early days I worked closely with the CEO and CTO, spearheaded business development efforts and worked on product development. With that said, while I can look at my success, I also failed building startups which helps me understand founder dynamics and make better investment decisions today. I sat on both sides of the table.
As a former founder and someone who was part of a successful early stage startup, it is easy for me to relate to the founders I meet in general. They appreciate that I have been through the trenches and I make sure to explain to them that I understand what they are going through. When I introduce myself to founders, I make sure to convey this message which always builds trust. The best founders want investors who have walked in the founder’s shoes. Moreover, I firmly believe in honesty and authenticity in all aspects of life, be it with friends, family or business partners. When someone is honest, they give the other side a choice. When someone lies, they have already made the decision for the other side. Therefore, honesty and authenticity are most important to me and founders recognize that.
I have also built deep domain expertise in the financial services industry and founders regularly approach me for advice which has further bolstered my credibility, putting me at the forefront for founders.
What major trends do you expect to see in FinTech and InsurTech over the next 5 years that excites you?
Financial Services in general has been an emerging topic for years. I am excited about innovation, specifically in emerging markets such as LATAM, Africa and Middle East and emerging sectors such as commercial insurance and anything around speciality insurance. In the Fintech sector I am intrigued by technologies disrupting financial literacy and serving underprivileged communities, credit risk, open banking technology, wealth management and payments.
If you had to share, “words of wisdom,” with a Founder who’s about to start their own startup, what would they be?
- Focus on solving a problem: The most successful startups are those that solve a problem, not creating a solution and then looking for a problem.
- Build a strong team: It’s all about the people — make sure you surround yourself with amazing people that have a vision that aligns with yours. Make sure to apply this principle to everyone you bring on either on your team or captable.
- Resilience: Be resilient in your approach, but also open to feedback from the outside. And always remember consistency beats talent.
How can our readers follow you on social media?
Twitter: @amirkabir99
This was very insightful. Thank you so much for joining us!
