Dr. Joe DeSimone took his own path to entrepreneurship. His latest venture, Carbon, is changing the way things are made.
He’s assembled one of the most impressive Board of Directors and line up of investors to transform the $300 billion manufacturing industry.
Joe recently appeared as a guest on the DealMakers Podcast. During his exclusive interview, he shared how his team is transforming how the world makes things, the fundraising process, what it’s like building a nearly 500 person company in less than 6 years, and many more topics.
From Academia to Entrepreneurship
Joe DeSimone was born and raised in the suburbs of Philadelphia. Ever since high school, Joe found he had a knack for chemistry. For both understanding it and for teaching it.
He attended Ursinus College, and then Virginia Tech for his Ph.D. On a tip from a faculty advisor, he went to check out the University of North Carolina, at Chapel Hill—-one of the top 10 chemistry departments in the country.
If he would teach organic and polymer chemistry, then they would give him $500,000 to start a research program. He was convinced. At UNC, he enjoyed a highly successful career as a professor for 25 years.
Joe taught a lot of students chemistry and mentored many researchers. He learned that people have very different learning styles. From his perspective, if you want to be a great teacher, you have to take responsibility for explaining complicated topics in accessible ways.
It turns out that is a really important trait for entrepreneurs too. It’s a valuable skill whether you’re doing it in a classroom setting, talking to VCs or investors, or your own employees. The importance of bringing people along with you.
His position in academia enabled Joe DeSimone to pursue a handful of interesting startups based on his research before he launching his newest venture, Carbon, in 2013.
His first company was BioStent. A partnership with an interventional cardiologist at Duke University. They developed a coronary stent that is polymeric instead of metal-based. It dissolves in the body after 18 months, once blood vessels can operate on their own again. The company was acquired by Guidant, and then Abbott.
Next, it was Liquidia Technologies, a partnership with one of Joe’s Ph.D. students including Jason Rolland, now SVP of Materials at Carbon. Liquidia went IPO last year.
They developed technology that leveraged tools from the computer industry to make precision nanoparticles. It spawned new and more effective ways to deliver medicines to the airway.
It has proven valuable in improving treatment approaches for diseases like pulmonary arterial hypertension, and in creating next-generation vaccine platforms for infectious diseases and certain cancers.
After spending 25 as a faculty member at UNC, the opportunity to go to Silicon Valley and take on a new entrepreneurial challenge was something Joe couldn’t pass up.
UNC agreed he could take a sabbatical to pursue his idea. That was five years ago.
Departing Academia for Silicon Valley
When Joe left North Carolina for Silicon Valley to found Carbon, he didn’t know what the future would hold. Carbon is now one of the world’s leading digital manufacturing companies.
Based in Redwood City, Carbon’s mission is to enable companies to make breakthrough products that can improve human health and well being, transform industries, and change the world.
Joe launched the company and its groundbreaking Digital Light Synthesis™ (DLS) technology on the TED stage in 2015. DLS fuses light and oxygen to rapidly produce products from a pool of resin. Using DLS technology, Carbon is enabling companies like Adidas, Riddell, Ford and Johnson & Johnson to create breakthrough products at speeds and volumes never before possible, finally fulfilling the promise of 3D printing.
Joe believes that empowering product teams to make breakthrough products and bring them to market faster will change the way we live.
Carbon has cracked the code on 3D printing at scale. The manufacturing industry is a $12 trillion market and manufacturing polymers is a $330 billion market. There is enormous potential here for Carbon to lead the digital revolution in manufacturing.
Creating a Company Differentiated by its Technology, Business Model and Team
With a team of nearly 500 employees around the world, Carbon has also assembled an impressive team of board members and investors while raising $680 million in the process at a $2.5 billion valuation.
Carbon’s board includes former Chairman and CEO of DuPont, Ellen Kullman, former CEO of Ford Motor Company, and former CEO of Boeing’s Aircraft Division, Alan Mulally, and Sequoia’s Jim Goetz.
Some of their investors include Sequoia, Google Ventures, GE, Adidas, BMW, Johnson & Johnson, and JSR. They’ve also got Fidelity, Baillie Gifford, and Madrone Capital Partners as well as investment from additional international sovereign funds.
Storytelling is everything in fundraising and Carbon was able to master this. Being able to capture the essence of what you are doing in 15 to 20 slides is the key. For a winning deck, take a look at the pitch deck template created by Silicon Valley legend, Peter Thiel (see it here) that I recently covered. Thiel was the first angel investor in Facebook with a $500K check that turned into more than $1 billion in cash.
Critical Ingredients for a Successful Company
During the interview, Joe shared three of the most important components of building a successful company as being:
1. The importance of IP and patent-protection
2. Building highly differentiated technology
3. Assembling a world class team of people that are committed, passionate, and talented
DeSimone also shared his thoughts on the similarities between academia and entrepreneurship such as the importance of bringing people along with you and painting a vision for the future and how the world can be different.
Listen in to the full podcast episode to find out more, including:
I am a serial entrepreneur and the author of the The Art of Startup Fundraising. With a foreword by ‘Shark Tank‘ star Barbara Corcoran, and published by John Wiley & Sons, the book was named one of the best books for entrepreneurs. The book offers a step-by-step guide to today‘s way of raising money for entrepreneurs. Most recently, I built and exited CoFoundersLab which is one of the largest communities of founders online. Prior to CoFoundersLab, I worked as a lawyer at King & Spalding where I was involved in one of the biggest investment arbitration cases in history ($113 billion at stake). I am an active speaker and have given guest lectures at the Wharton School of Business, Columbia Business School, and at NYU Stern School of Business. I have been involved with the JOBS Act since inception and was invited to the White House and the US House of Representatives to provide my stands on the new regulatory changes concerning fundraising online
It’s what was passed on from Buffett’s father to Warren–the principle of having an “Inner Scorecard” rather than an “Outer Scorecard.” Either one can get you to success, but one matters more than the other. Buffett said:
The big question about how people behave is whether they’ve got an Inner Scorecard or an Outer Scorecard. It helps if you can be satisfied with an Inner Scorecard.
Unpacking Buffett’s “inner scorecard” principle
An outer scorecard is what most people have or want, often driven by hubris, greed, or a life lived off-balance. It’s an external measure of success that attempts to answer elusive questions like, “What do people think of me, my success, my image, or my brand?”
The inner scorecard is intrinsic and it defines who you are at the core of your values and beliefs. The focus is on doing the right things and serving people well instead of on what other people think of you. In one simple but hard-to-attain word in business, it’s about being authentic.
The inner scorecard has been the Warren Buffett way and what has worked for the self-made billionaire his entire life. It’s taking the higher road and it’s paid off for Buffett.
Investor and author Guy Spier writes in his book The Education of a Value Investor, “One of Buffett’s defining characteristics is that he so clearly lives by his own inner scorecard. It isn’t just that he does what’s right, but that he does what’s right for him … There’s nothing fake or forced about him. He sees no reason to compromise his standards or violate his beliefs.”
Here are four examples of how living by your own inner scorecard can lead to success, as it has for Buffett.
1. Start with what you teach your kids.
In Alice Schroeder’s The Snowball: Warren Buffett and the Business of Life, she quotes Buffett offering a parenting tip: “In teaching your kids, I think the lesson they’re learning at a very, very early age is what their parents put the emphasis on. If all the emphasis is on what the world’s going to think about you, forgetting about how you really behave, you’ll wind up with an Outer Scorecard. Now my dad: He was a hundred percent Inner Scorecard guy.”
2. Beware of whom you hang out with.
One summer after graduating from Columbia University, Buffett had to fulfill his obligation to the National Guard and attend training camp for a few weeks. That experience taught him one incredible lesson: hang around people who are better than you.
Buffett said in The Snowball, “To fit in, all you had to do was be willing to read comic books. About an hour after I got there, I was reading comic books. Everybody else was reading comic books, why shouldn’t I? My vocabulary shrank to about four words, and you can guess what they were.
“I learned that it pays to hang around with people better than you are because you will float upward a little bit. And if you hang around with people that behave worse than you, pretty soon you’ll start sliding down the pole. It just works that way.”
3. Don’t forget the only two rules of investing you’ll ever need.
Buffett pares down his inner scorecard investment philosophy to two simple sound bites. He says, “Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1.”
Yes, he’s made billions but he has also personally lost billions–about $23 billion during the financial recession of 2008. What Buffett alludes to here is mindset–having a sensible approach to investing. That means doing your homework, finding sustainable businesses with good reputations, and avoiding being frivolous and gambling away your money. Buffett never invests prepared to lose money, and neither should you.
4. Never waver away from what matters most to you.
Buffett’s success is not so much about what he has done as it is about what he hasn’t done. With all the demands on him every day, Buffett learned a long time ago that the greatest commodity of all is time. He simply mastered the art and practice of setting boundaries for himself.
That’s why this Buffett quote remains a powerful life lesson. The mega-mogul said:
The difference between successful people and really successful people is that really successful people say no to almost everything.
This advice speaks directly to our inner scorecard. We have to know what to shoot for to simplify our lives. It means saying no over and over again to the unimportant things flying in our direction every day and remaining focused on saying yes to the few things that truly matter.
As young man, V.G. Siddhartha struggled to find the right path for himself. Perhaps the armed forces? No, no—a failed entrance exam to India’s National Defense Academy put the kibosh on that idea. What about community activism? “I was impressed by the philosophies of Karl Marx,” Siddhartha recalled a few years ago, “and really thought I would become a communist leader.”
After graduating from St. Aloysius College in southern India, he struck out into the provinces, eager to put Marx’s maxims to work raising the fortunes of the poor. This proved as impractical as military service. The countryside was rife with corruption and nepotism, impeding any progressive agenda. “India was so poor that there was no scope to become a Robin Hood,” Siddhartha said. “That’s when I realized that rather than being a wealth distributor, I should become a wealth creator.”
He did just that, founding India’s largest coffee-shop chain, Coffee Day Enterprises, a $572 million-in-sales business (with more than 10,000 employees) that persuaded a country raised on tea to consume something else entirely. It made him a wealthy man, one of the richest in India and, for a brief moment after Coffee Day’s 2015 IPO, a billionaire. Siddhartha came to represent everything India dreamed of becoming: a modern nation where entrepreneurs could brew new ideas, changing their lives and the circumstances of everyone connected to them as a result. That’s a radical notion for a nation constricted by millennia-old rigidity around class, structure and expectations. Siddhartha was fully aware of this. “If I was born 20 years earlier, I would have surely failed,” he said in 2011.
In death, Siddhartha, whose body was found Wednesday morning in the Netravati River in an apparent suicide, will likely also come to represent grimmer realities: the limits of the Indian economic miracle, the constraints of creating a business within a developing market, and the alleged harassment by government officials, which would have been not unlike the corruption that disgusted him in the first place.
Siddhartha was reared on coffee, his father’s family longtime plantation owners in. He resisted following tradition, though, and after college, in 1983, he took two busses from the countryside to Bombay, where he talked his way into a meeting with one of the country’s biggest stock-brokerage businesses. (He’d read about investing in a magazine and found it interesting.) To be more precise, Siddhartha charmed the secretary of the firm’s chief executive, Mahendra Kampani, and with the secretary’s help, showed up at Kampani’s office one day.
“The first thing was, I felt intimidated by the two elevators [at the Bombay office]. I had never taken an elevator in my life. So I climbed up the six floors,” Siddhartha later described that first day. From there, he reached Kampani’s inner sanctum. “He asked me who I was. I told him that I had come all the way from Bangalore, and I wanted to work for him. … I had never seen an office as large as his. … He said he would take me in, but he had no idea who I was.”
Quickly Siddhartha proved to be a natural. “If I started with $1,000, I made a $3,000 by the end of the day’s trade,” he said. By his own estimate, it took him only a year and a half to learn the brokerage game and build up enough wealth to launch his own book back in Bangalore. He started funneling profits into coffee plantations, amassing 2,500 acres by 1992.
Around then, the Indian government pared back regulations on coffee growers. Before, they had been forced to sell to a national clearinghouse for 35 cents a pound, less than half what the beans could fetch overseas. As the rules fell away, prices for coffee began to rise. They hit $2.20 a pound in 1994 when a freeze in Brazil decimated that country’s crop. Siddhartha picked up the slack, fulfilling orders for 4,000 tons. The unexpected boom paved the way for another idea: a string of coffee houses, modeled on a similar idea he’d seen in Singapore. In 1994, Coffee Day Enterprises opened its first 20 stores. Siddhartha was “constantly thinking and creating, never happy to rest on his success,” says Nandan Nilekani, a friend and former CEO of Infosys Technologies, an Indian technology-consulting business.
Since Siddhartha owned coffee farms, he could cut away many of the middlemen who added expenses to his rivals; he even milled timber from his properties and turned it into furniture for his restaurants. Coffee Day really took off once he added computers with internet access to his locations, creating some of India’s first cyber cafes.
What Siddhartha loved more than coffee was working, and he celebrated New Year’s Eve 2009 in a Coffee Day, taking notes on how to improve service—and going behind the counter to see firsthand how customers treated his employees. “I was simply amazed how indifferent people are to those who serve. Three rich women came, ordered their drinks, did not once look at me, and settled the check, did not care to tip me, but worse, did not say a ‘thank you’ before leaving for someplace else where revelry awaited them,” he said. “It shocked me because it was New Year’s Eve. I thought people would be nice to others because they themselves were in such a joyous state of mind.”
His industriousness was getting noticed. The following year, a group of investors, including famed KKR, put $200 million in Coffee Day for a 34% stake. Revenue was then around $200 million, and sales nearly doubled within four years, the point when Siddhartha took his company public. His caffeinated kingdom extended across India, to 1,513 cafes in 219 cities. But to keep expanding, Siddhartha grew addicted to something that would, apparently, weigh heavily on his mind at the end of his life: debt financing. Coffee Day’s total liabilities blossomed from $189 million in 2011 to $758 million last year.
Earlier in 2019, Siddhartha began searching for a way to answer demands from his growing mountain of creditors. He tried, futilely, to talk Coca-Cola into buying a stake in Coffee Day and explored other asset sales, desperate to widen his cash stream. In a more mature economy, he might have secured different sorts of funding from the beginning—presumably the private equity investors he attracted in 2010 pushed him to load up on debt—or had the opportunity to borrow at less onerous rates. We’ll never know what would have happened had that been the case. But on July 29, Siddhartha switched his phone off, instructed his driver to take him to the Ullal Bridge over the Netravati River, got out of the car and was never seen alive again.
Purportedly, Siddhartha left behind a note, outlining the grief that drove him to his tragic end. He highlighted harassment from a tax official, prompting outcries from Indian politicians that the government has not done enough to boost entrepreneurs like Siddhartha and tamp down on corruption. Siddhartha also mentioned needing to borrow a large sum from a friend to stay afloat and, of course, mounting pressure from lenders. “My intention was never to cheat or mislead anyone, I have failed as an entrepreneur,” the letter reads. “This is my sincere submission, I hope someday you will understand, forgive and pardon me.”
The missive’s authenticity has not been verified. But its ending is certainly very Siddhartha, a cool-minded tabulation and twin insistences: that he hoped his assets would outweigh his liabilities and that, in the end, his family and business “can repay everyone.”
At Forbes, I cover the world’s wealthiest capitalists, as well as other entrepreneurs. For ForbesLife and Forbes’ lifestyle pages, I write about life’s greatest indulgences, including the finest chefs, food and booze
Justin McCurry doesn’t like much on his schedule. At most, he sets one thing to do a day. On Monday, that might be volunteering. On Wednesday, it’s likely grocery shopping. On Friday, there’s a good chance he’ll be playing tennis with his wife.
The rest of the time? It’s up to him. Pursuing a hobby, playing video games, doing yard work. It’s not the typical schedule for a 39 year-old with three kids. But that’s what McCurry has done since officially retiring as a transportation engineer in 2013.
In about a decade, he and his wife, Kaisorn, saw their portfolio balloon from a few thousand dollars to $1.3 million, yet neither of them had a job that paid close to six figures. And what’s particularly unusual about McCurry’s journey: He never had a passive income stream – other than his investment portfolio – that helped buffer his paycheck, boosting his ability to save. Instead, he did it all through cutting back and finding intelligent ways to squeeze savings, without sacrificing his lifestyle.
“I realized I had more paycheck than expenses,” said McCurry. “I just knew that saving money was probably a good thing,” as he tried to figure out what to do with the leftover funds each month.
When bloggers and FIRE (financially independent, retire early) voices talk about stepping away from the day job in their 30s and 40s, it’s also often coupled with side gigs that bring in dough, such as real estate or businesses that they built. It serves as a much-welcomed security blanket when managing a retirement that could stretch 50 years or more. For McCurry, though, it wasn’t about passive income streams or growing a sizable real estate portfolio. From 2004 to 2013, he and his wife lived on one income while essentially stashing away the other.
In the meantime, they had three kids, bought a house and have traveled the world.
Don’t Get Overwhelmed by the Size of It All
When McCurry first started saving, he looked at how long he would need to retire, and came up with a number that would let him step away from the job 20 years later. Even though he never was a big spender, the number seemed daunting.
“Knowing I would have to chug away for a decade or two,” said McCurry, “it’s almost like a pie in the sky.”
It made it difficult for him to see the benefits at first because that number was so large and the timeframe so long. This isn’t much different than when people set out for retirement on 40-year timeframes.
Researchers have found that the more someone connects with their future-self, meaning can view their future self with the same empathy and concern as their current self, the more they will save.
This ability to connect with the future self may be easier on this shortened timeframe. But it’s not guaranteed.
For McCurry, it became easier to handle as he continued to refine his plan, saving more than he and his wife ever expected they could. Then, after a few years, he started seeing the impact of compound interest.
He would place around $60,000 in the portfolio in a year, while the investments would return $100,000. McCurry soon realized that his 20-year plan had shrunk in half.
Cut Your Taxes
One of the most important ways McCurry saved was on taxes. At one point, he took the family’s joint income of $150,000, and managed to realize a tax hit of just $150.
His wife maxed out her 401k as well, while also doing the same in a health savings account and a flexible spending account. He then used a series of deductions, from the standard one to exemptions to child credits to reduce that income line to $28,950, leaving just a $150 tax liability.
McCurry took the approach that the tax breaks providing a discount to his savings. At the time, he would invest around $60,000 a year in tax-advantaged accounts. With that money, he locked in about $15,000 in tax breaks. That $60,000 investment, in actuality, only cost him around $45,000 if you count the tax break.
“It’s a little easier to save $45,000 versus $60,000,” McCurry said.
Design For the Worst Case Scenarios
One reason that McCurry’s timeframe shifted from 20 years to 10, despite lacking an additional income source, was simply because of the amount of buying he did when times looked bleak in 2007 through 2009.
He’s not like many in the FIRE world, constantly checking the portfolio, feeling the joy as the dollars increased, bringing him one step closer to quitting the day job. Instead, he mostly checks the accounts once a quarter, figuring out where he stands and if he needs any adjustments to his contributions.
“The last quarter in 2007, I noticed huge drops in our net worth,” remembered McCurry.
It didn’t deter him.
“I put as much as I could into the stock market each month, knowing I’m buying these shares at half or a third from where they were,” he added. “It was a buying opportunity of a lifetime.”
When the stocks began to turn in 2009, then his net worth went into hyper-drive. Since stepping away with $1.3 million, he’s now worth over $2.1 million, largely due to the fact that he now earns a little income from his blog, RootofGood.com (which means he doesn’t have to tap as much investment income) and the performance of his investments through a decade-long bull run.
But McCurry is savvy enough to realize the market will pull back at some point.
That’s where he taps his engineering muscle. As an engineer, you always prepare for the worst-case scenario. If what you’re building works under that scenario, then it will work, theoretically, in all other cases. When he looks at his portfolio, if the market drops 40%, then it would reach the levels he started with when he first retired.
He might spend a little less, but with a 3.25% rate of withdrawal from his investments, his family would be “totally fine,” he said.
Each year for the past five, Forbes has searched the country for the 25 fast-growing, venture-backed startups most likely to reach $1 billion in value. Graduates include: food delivery service DoorDash, home seller Opendoor, luggage brand Away and synthetic biology company Ginkgo Bioworks.
This year, with the help of TrueBridge Capital Partners, we scoured the country again for budding unicorns. TrueBridge analyzed the finances of more than 150 startups, then our reporters dug deeper. That research caught problems at San Francisco-based Cleo, a parenting app with a troubled workplace and a CEO who lied about her age and background. The company was removed from consideration after our investigation, and its CEO resigned in mid-June. (The full story is here.)
FOUNDERS: Michael Gronager (CEO), Jonathan Levin, Jan Moller
EQUITY RAISED: $53 million
ESTIMATED 2018 REVENUE: $8 million
LEAD INVESTORS: Accel, Benchmark
New York-based Chainalysis makes cryptocurrency investigation software that can shine light on how people use bitcoin, ethereum, litecoin and more. Financial institutions use the technology to screen customers and comply with regulations designed to prevent money laundering, while government agencies such as the Internal Revenue Service and the Federal Bureau of Investigation can identify illicit transactions and investigate alleged criminals. Before teaming up to found Chainalysis, CEO Michael Gronager, 49, cofounded cryptocurrency exchange Kraken, while CTO Jan Moller, 47, built the Mycelium cryptocurrency wallet.
FOUNDERS: Arshan Dabirsiaghi, Jeff Williams; CEO: Alan Naumann
EQUITY RAISED: $122 million
ESTIMATED 2018 REVENUE: $25 million
LEAD INVESTORS: Acero Capital, Battery Ventures, General Catalyst, Warburg Pincus
In 2010, software security analyst Jeff Williams, 52, started dedicating resources at his consultancy, Aspect, to developing a program that would automate software security analysis. In 2014, he and former Aspect analyst Arshan Dabirsiaghi, 36, founded Los Altos, California-based Contrast Security to monitor the code within running apps and directly notify developers of potential vulnerabilities. “The work that previously had to go through security experts now goes directly to developers,” says Dabirsiaghi, now the company’s chief scientist. In 2016, the company brought in an outside chief executive, Alan Naumann, formerly CEO of online fraud detection startup 41st Parameter, to expand the business.
FOUNDERS: Lior Div (CEO), Yossi Naar, Yonatan Striem-Amit
EQUITY RAISED: $189 million
ESTIMATED 2018 REVENUE: $50 million
LEAD INVESTORS: CRV, Lockheed Martin, Softbank, Spark Capital
Cofounders Lior Div, Yossi Naar, and Yonatan Striem-Amit met during their service in the Israel Defense Forces’ elite intelligence unit, Unit 8200, fertile ground for many high-tech startups. While working on cybersecurity in the military, they came up with the idea for Cybereason, a cloud-based cybersecurity platform specializing in continuous monitoring and response to advanced cybersecurity threats. The company launched in 2012, and relocated from Israel to Boston the next year. “You provide value by helping a big organization not to be in the news as someone that gets hacked,” says Div, 41.
FOUNDERS: Paras Chitrakar, Jason Wilk (CEO), John Wolanin
EQUITY RAISED: $13 million
ESTIMATED 2018 REVENUE: $19 million
LEAD INVESTORS: Mark Cuban, Section 32
As a college student at Loyola Marymount University, Jason Wilk, now 34, blew through his budget, collecting overdraft fees. Wilk, an avid “Redditor,” saw that overdraft fees are a common complaint among users. So in 2016, he founded Dave, short for David, who beat Goliath, which Wilk sees as the big banks. The app tracks expenses and warns when a user’s account is in danger of being overdrawn. It hit a nerve: Dave was Apple’s “app of the day” in April 2017, and has been downloaded nearly 10 million times in two years. “Entrepreneurs can keep their ear to the ground for the next idea,” Wilk says. “Any idea that can be Reddit tested is a good place to start.”
FOUNDERS: Blake Murray (CEO), Alex Bean
EQUITY RAISED: $257 million
ESTIMATED 2018 REVENUE: $8 million
LEAD INVESTORS: Insight Partners, New Enterprise Associates, Pelion Venture Partners
Expense tracking service Divvy is taking on Concur and Expensify by offering its budgeting, fraud detection, and spend management tools for free. Instead of charging per user, Lehi, Utah-based Divvy gives businesses custom Mastercards and takes a cut of merchants’ fees to the bank when people make purchases. Founders (and high school buddies) Alex Bean and Blake Murray, both 35, have won over more than 3,000 corporate customers so far, including WordPress, Evernote and Qualtrics.
FOUNDERS: Luis von Ahn (CEO), Severin Hacker
EQUITY RAISED: $108 million
ESTIMATED 2018 REVENUE: $36 million
LEAD INVESTORS: CapitalG, Kleiner Perkins, Union Square Ventures
The world’s most popular digital language-learning tool, seven-year-old Duolingo has 28 million monthly active users. Most use the free version of its gamified courses. Revenue, largely from subscription fees from ad-free Duolingo Plus, is expected to double this year. CEO Luis von Ahn, 39, is a 2006 winner of a MacArthur “genius” grant and a former Carnegie Mellon computer science professor. Before founding Pittsburgh-based Duolingo, he sold two inventions to Google, including reCAPTCHA, the software that spits out the squiggly lines you type to alert a website that you are not a bot. An immigrant from Guatemala City who says learning English transformed his life, he’s driven to offer free language education to the masses. For our feature on Duolingo, click here.
FOUNDERS: Marcelo Cortes, Daniele Perito, Max Rhodes (CEO)
EQUITY RAISED: $116 million
ESTIMATED 2018 REVENUE: $100 million
LEAD INVESTORS: Forerunner Ventures, Khosla Ventures, Lightspeed Venture Partners, Y Combinator
In a bid to help mom-and-pop stores survive in the age of Amazon, Faire wants to take the risk and hassle out of wholesale purchasing. The San Francisco-based company helps retailers discover and buy new products online, and will accept free returns from them within 60 days for items that don’t sell. Today, it offers 5,000 brands to 35,000 stores. CEO Max Rhodes, a 32-year-old former Square employee, came up with the idea after he started working with a New Zealand-based umbrella brand and spent thousands of dollars to sit at a tradeshow booth to convince U.S. store owners to stock the high-end umbrellas.
FOUNDERS: Dylan Field (CEO), Evan Wallace
EQUITY RAISED: $83 million
ESTIMATED 2018 REVENUE: $3 million
LEAD INVESTORS: Greylock, Index Ventures, Kleiner Perkins, Sequoia
Figma wants to move design online, casting aside the old model of software downloads and siloed creation in favor of a browser-based tool where designers can work and collaborate together. Founders Evan Wallace, 29, and Dylan Field, 27, met at Brown University—Wallace graduated, Field dropped out with a Thiel Fellowship—and launched the San Francisco-based company in 2012. Five years later, Figma started charging professionals to use its product. (Individuals are still free.) Today, professionals pay $12 per editor per month and businesses $45 per editor month to use Figma. More than 5,000 teams, at companies like Microsoft, Volvo, Uber and Square, are users. “Design is like this viral infectant because once your competitor is well-designed, you have to be well-designed, otherwise you’ll be disrupted,” says Field.
FOUNDERS: Arun Chandrasekaran, Matt Elenjickal (CEO)
EQUITY RAISED: $101 million
ESTIMATED 2018 REVENUE: $16 million
LEAD INVESTORS: August Capital, Bain Capital Ventures, Hyde Park Venture Partners
Matt Elenjickal, 37, a logistics geek with an MBA from Northwestern University’s Kellogg School of Management, founded FourKites in 2014 to help companies know where their deliveries are, when they’ll arrive and what’s going on along the way. Its predictive supply-chain management software is now used by more than 260 of the world’s top shippers — and upwards of 500,000 loads per day — including Best Buy, Kraft Heinz, Nestlé and Smithfield Foods. “If you are a shipper, once the truck leaves your facility you have no idea what is happening,” Elenjickal says. “That is how supply chains are run even now without a solution like FourKites. You cannot compete against Amazon.”
FOUNDERS: Mathilde Collin (CEO), Laurent Perrin
EQUITY RAISED: $79 million
ESTIMATED 2018 REVENUE: $16 million
LEAD INVESTORS: Sequoia, Uncork Capital
Mathilde Collin, an alumna of Forbes’ 30 Under 30 list, got the idea for Front while at her first job after graduate school. “I saw how much time was wasted with people sorting through their emails,” she says. So in 2013, she launched the San Francisco-based startup to help companies become more productive with a shared email inbox that incorporates Facebook, Twitter and SMS, and encourages team collaboration. Today, Front has 5,000 customers including Shopify, MailChimp and Stripe.
FOUNDERS: Sung Ho Choi, David Gandler (CEO), Alberto Horihuela
EQUITY RAISED: $145 million
ESTIMATED 2018 REVENUE: $74 million
LEAD INVESTORS: 21st Century Fox, Northzone, Sky
David Gandler, 44, a longtime network sales exec, launched FuboTV in 2015 to tap into pent-up demand in the United States for overseas soccer leagues. FuboTV offered live streams of soccer channels such as GolTV and Benfica TV to start, then expanded programming through deals with beIN Sports and Univision. Today, New York-based FuboTV is generally a cheaper alternative to cable (starting at $54.99 a month) that offers more than 90 channels.
FOUNDERS: Chris Clark, Stuart Landesberg (CEO), Jordan Savage
EQUITY RAISED: $213 million
ESTIMATED 2018 REVENUE: $104 million
LEAD INVESTORS: Bullpen Capital, General Atlantic, Lone Pine Ventures, Mayfield Fund, Norwest Venture Partners, Serious Change
Ask Grove Collaborative CEO Stuart Landesberg, 34, who his typical customer is, and he’ll give you a specific answer: “A 29-year-old mother of two working as a substitute teacher in Lawrence, Kansas.” Even in the age of Amazon, Grove has carved out a $104 million niche in e-commerce by selling natural products, from laundry detergent to sponges, in easy-to-order shipments. Around 60% of its revenue comes from products not sold on Amazon, says Landesberg. But he wants to do more than sell Seventh Generation or Method soaps online. In 2016, Grove started to manufacture its own all-natural products that now make up nearly 50% of its sales. The key? Designing products that are easier to ship. Its glass cleaner, for example, is highly-concentrated and smaller than a tube of toothpaste.
FOUNDERS: Augusto Marietti (CEO), Marco Palladino
EQUITY RAISED: $71 million
ESTIMATED 2018 REVENUE: $5 million
LEAD INVESTORS: Andreessen Horowitz, CRV, Index Ventures, New Enterprise Associates
Kong acts as a gatekeeper to companies’ APIs (code developers use to build apps) and monitors how often they’re used. Augusto Marietti, 31, and Marco Palladino, 30, launched the company out of a garage in Milan, where they both attended university, and were constantly flying back and forth to Silicon Valley to fundraise. “At this stage, we barely had enough money to eat,” Marietti says. “We definitely lost a few pounds when we were first starting up.” Now based in San Francisco, Kong has successfully penetrated the enterprise market with 130 customers that include SoulCycle, Yahoo Japan and WeWork.
FOUNDERS: Jack Altman (CEO), Eric Koslow
EQUITY RAISED: $27 million
ESTIMATED 2018 REVENUE: $7 million
LEAD INVESTORS: Shasta Ventures, Thrive Capital
Lattice founders Jack Altman, 30, and Eric Koslow, 28, learned first-hand the impact of work culture while working at startup Teespring, which sells custom t-shirts. In 2015, they decided to do something about it, starting Lattice. The San Francisco-based company’s human resources software uses surveys to shift the focus of performance management from employee evaluation to career development. Today, Lattice works with 1,300 customers, including Coinbase, Instacart, Slack and WeWork. “Employees are looking for more meaning from work than ever before, and have more visibility into and access to other jobs than ever before,” Altman says. Lattice helps their employers step up.
FOUNDERS: Elton Chung, Lidia Yan (CEO)
EQUITY RAISED: $125 million
ESTIMATED 2018 REVENUE: $46 million
LEAD INVESTORS: Brookfield Ventures, China Energy Group, Sequoia
Cofounded by husband and wife team Elton Chung and Lidia Yan in 2015, Los Angeles-based Next Trucking is moving freight brokerage online. While other startups like Convoy and Uber Freight move cargo from point A to point B, Next Trucking focuses on drayage, or the “first-mile” of transferring goods from port to warehouse. “Drayage is a lot more complicated because it involves terminals and ports,” says Yan, 38. As a result, Next Trucking has doubled revenue every year since 2016, reaching $46 million in 2018. Yan forecasts revenue will hit $120 million this year, helped by large contracts with retailers Dollar General, Rite Aid and Steve Madden. For our feature on Next Trucking, click here.
FOUNDERS: Jack Conte (CEO), Sam Yam
EQUITY RAISED: $166 million
ESTIMATED 2018 REVENUE: $35 million
LEAD INVESTORS: Freestyle Capital, Glade Brook Capital Partners, Index Ventures, Thrive Capital
Musician turned entrepreneur, Jack Conte, 35, wants to break the “starving artist” archetype by helping creators earn a regular income. “Deciding to be an artist shouldn’t have to be a difficult conversation,” says Conte. “It should feel like a viable career choice.” Using Patreon, artists offer exclusive experiences in return for contributions from their subscribers or “patrons.” HBO’s Issa Rae, Humans of New York founder Brandon Stanton and comedian Heather McDonald are some of the creators currently using Patreon and by 2019, the company expects to pay out more than $1 billion to its users.
FOUNDERS: Denis Mars (CEO), Simon Ratner
EQUITY RAISED: $14 million
ESTIMATED 2018 REVENUE: $1 million
LEAD INVESTOR: Kleiner Perkins
The Proxy app is like having a set of keys on your smartphone: Your profile’s signal gives you access to any building where you’re registered, eliminating the need for traditional ID cards and keys. It’s a straightforward idea, but Australian-expat founders Denis Mars, 42, and Simon Ratner, 39, are confident that they’ve just scratched the surface of its potential. So far, San Francisco-based Proxy has proven popular with commercial real estate clients like WeWork. Mars and Ratner now hope to expand their technology (which includes the app, management platform and signal-reading hardware) to identity verification for ride-sharing and event check-in.
FOUNDERS: Ofer Bengal (CEO), Yiftach Shoolman
EQUITY RAISED: $147 million
ESTIMATED 2018 REVENUE: $50 million
LEAD INVESTORS: Bain Capital Ventures, Francisco Partners, Goldman Sachs, Viola Ventures
Israeli tech veterans Ofer Bengal and Yiftach Shoolman set up a fast-database service, in 2011, to help businesses looking to speed up responses on their apps. Redis Labs relies on what’s known as NoSQL, an alternative form of compiling data that is faster than traditional models. That lightening-fast processing speed has helped it sign on FedEx, Mastercard and other corporate behemoths. To scale up quickly, the Mountain View, California-based company offered a free, open-source version to hook developers. In 2013, it rolled out a paid version with costs starting at $5 per month per gigabyte. “You can’t do without open source if you want rapid adoption,” says Bengal.
FOUNDERS: Shivaas Gulati, Josh Hug, Matt Oppenheimer (CEO)
EQUITY RAISED: $312 million
ESTIMATED 2018 REVENUE: $80 million
LEAD INVESTORS: Bezos Expeditions, DFJ Venture Capital (now Threshold Ventures), Generation Investment Management, Naspers’ PayU, QED Investors, Stripes Group
Remitly is taking on Western Union with lower fees — estimated 1.5% on average vs. the money-transfer giant’s 5%. Matt Oppenheimer, who had worked for Barclays in Kenya, and his cofounders launched the business in 2011 to help people in developed nations like the U.S. and Australia send money cheaply to relatives in developing countries like Mexico and the Philippines. Today, Remitly serves 60 countries and processes $6 billion a year in money transfers, about 1% of the nearly $700 billion remittance market. Already one of the largest fintech firms targeting immigrants, the Seattle startup’s long-term goal is to branch out into other financial services, potentially including credit cards, personal loans and auto loans.
FOUNDERS: Xuan Yong (CEO), Mike Witte
EQUITY RAISED: $94 million
ESTIMATED 2018 REVENUE: $21 million
LEAD INVESTORS: Bedrock Capital, Founders Fund, Quantum Energy Partners
There are nearly 1,000 rigs drilling for oil and gas in the U.S. Each well requires the input of dozens of service companies and workers — everything from high-horsepower compressors for fracking, to miles of steel pipe, and millions of gallons of water and truckloads of sand. Cofounder Xuan Yong, formerly of Citadel and D.E. Shaw, believes RigUp can improve on the good ol’ boy network by more efficiently connecting the “hyperfragmented” market of roughnecks, engineers and business owners with the big oil companies that call the shots. RigUp pre-vets workers and vendors, and creams an estimated 4% off every contract made via its online platform. Yong isn’t worried about machines invading the oilpatch. “Even with A.I. there will be demand growth for labor,” he says. “Field tickets are still signed on paper and stamped.” For now.
FOUNDERS: Stephen Hawthornthwaite, Roth Martin (interim CEO)
EQUITY RAISED: $42 million
ESTIMATED 2018 REVENUE: $140 million
LEAD INVESTORS: Goldman Sachs, Lightspeed Venture Partners
Founders Roth Martin, a former art gallery owner, and Stephen Hawthornthwaite (aka “Hawthy”), a former investment banker, launched the footwear brand after listening to their wives complain about the lack of stylish, comfortable shoes. Rothy’s 3D-knitted round-toe and point-toe flats, made from recycled plastic water bottles, have gained cult status. In just three years, it expanded rapidly with direct-to-consumer sales online, reaching revenue of $140 million last year. For our feature on Rothy’s, click here.
FOUNDERS: Phillip Liu, Karthik Rau (CEO)
EQUITY RAISED: $179 million
ESTIMATED 2018 REVENUE: $25 million
LEAD INVESTORS: Andreessen Horowitz, CRV, General Catalyst, Tiger Global Management
SignalFx monitors cloud infrastructure in real time for companies like Yelp, Shutterfly and HubSpot. In 2013, Karthik Rau, 41, who previously worked at tech startups LoudCloud and VMware, founded the company with ex-Facebook software architect Phillip Liu, 51. While competitors collect and query data in batches every two to three minutes, SignalFx evaluates and alerts users to anomalies in two to five seconds. “The difference between getting reliable alerts within seconds and getting them in minutes is the difference of seamlessly dealing with an issue,” says Rau. “Or having all of your users on Twitter complaining.”
FOUNDERS: Paul Dabrowski (CEO), Michael Dabrowski
EQUITY RAISED: $157 million
ESTIMATED 2018 REVENUE: $20 million
LEAD INVESTORS: Founders Fund, 8VC
Gene-editing tool Crispr has unleashed a gold rush for new products made possible by cheaply and easily editing DNA. Synthego is cashing in by selling the genomic equivalent of pickaxes, shovels, maps and other tools. Its ready-made and custom kits allow researchers in academia and the private sector to rapidly develop gene-edited products, including new medical treatments. Its founders, brothers Paul and Michael Dabrowski, 34 and 38, previously worked at SpaceX as engineers and drew on that experience to bring a new way of thinking to biotech.
FOUNDERS: Umar Afridi (CEO), Sid Viswanathan
EQUITY RAISED: $13 million
ESTIMATED 2018 REVENUE: $48 million
LEAD INVESTOR: Initialized Capital
If you buy birth control from Nurx or hair-loss products from Hims, behind-the-scenes pharmacy Truepill will actually fill and deliver your prescription. The three-year-old startup’s founders Umar Afridi, 37, a former retail pharmacist, and Sid Viswanathan, 35, who previously worked at Johnson & Johnson and LinkedIn, see a growing market in bringing technology and efficiency to pharmacy. Although Truepill started with direct-to-consumer brands, it’s now making a bigger play to bring on corporate customers with pricey, specialty medications.
FOUNDERS: Benjamin Bercovitz, Filip Kaliszan (CEO), James Ren, Hans Robertson
EQUITY RAISED: $59 million
ESTIMATED 2018 REVENUE: $20 million
LEAD INVESTORS: First Round, Meritech, Next47, Sequoia
While many startups have tackled the “smart home” with varying degrees of success, Verkada has exploded in shy of two years on the market by offering big businesses, municipalities and schools a cloud-based system that combines hardware and software to detect movement and easily store and share surveillance streams. In 2019, the company founded by three Stanford graduates and the former cofounder of Meraki (a cloud startup since acquired by Cisco) signed on the city of Memphis — a nearly 1,000-camera contract — Juul Labs and Newtown Public School District, the district of the 2012 Sandy Hook Elementary School shooting tragedy.
Additional reporting by Susan Adams, Elisabeth Brier, Dawn Chmielewski, Lauren Debter, Michael del Castillo, Jillian D’Onfro, Christopher Helman, Jeff Kauflin, Alex Knapp, Alex Konrad, Christian Kreznar and Monica Melton
Cover Photographs by Tim Pannell for Forbes | Illustrations by David Wilson
Australian casino mogul James Packer agreed to sell nearly 50% of his remaining stake in Crown Resorts Limited to Macau billionaire Lawrence Ho’s Melco on Thursday. The deal will close in two tranches—one in early June and the other in late September.
Melco also said that it’ll pursue a larger stake in Crown as well as board seats, pending regulatory approvals. The $1.22 billion (A$1.75 billion) purchase price is a tiny premium—not even 1%—over Crown’s closing price Thursday. On Friday, Crown’s stock dropped 3% on the Australian Securities Exchange from the previous day.
Forbes calculates Packer’s net worth at about $3 billion, based on the $850 million he’ll likely receive (net of taxes), and Friday’s closing stock price. That’s a drop of $600 million since January when we published our ranks of Australia’s Richest. At the time he was the nation’s ninth richest person, worth $3.6 billion.
It’s quite a comedown for Packer, whose father was considered one of Australia’s most successful entrepreneurs. Kerry Packer, who died in 2005, owned Australia’s leading television network and the country’s biggest swath of magazines. Kerry had inherited a media company from his father, Sir Frank, and grew it into a broadcasting and publishing empire worth $5 billion. James Packer seemed up for the job, and was initially lauded for reinventing his father’s empire by selling most of the Packer family media assets to a Hong Kong-based private equity firm for $4 billion across two deals in 2006 and 2007 and moving into casinos. A decade ago, James Packer was the nation’s richest person. Five years ago, his net worth peaked at $6.6 billion. Today he’s worth less than half that.
This is not the first time Melco and Crown have done business. The two companies partnered in 2004 to develop and operate casinos in Macau. The partnership ended in 2017 when Packer sold his Macau assets back to Melco to focus on his Australia-based casinos.
Lawrence Ho, CEO of Melco, who like Packer is the son of a powerful, legendary entrepreneur (97 year old Stanley Ho, who retired last year), is currently worth $2.1 billion, according to Forbes. Most of his net worth is tied up in Melco, in which he owns an approximate 54% stake.
Currently, the biggest project for Crown is its $1.5 billion casino in Sydney, which is slated to open in 2020.
Earlier this year Packer tried to cash out of Crown. In April, Wynn Resorts, which was founded by billionaires Steve and Elaine Wynn, explored taking over Crown for $7 billion. But hours after Crown announced the proposed deal, Wynn Resorts issued a statement saying it was off due to “premature disclosure.”
Packer stepped down from Crown Resorts’ board in March 2018. Four months later, he resigned from the board of his family company Consolidated Press, which he and his sister inherited from their father.
According to the Sydney Morning Herald, Packer has been seeking a lower-profile life since stepping down from Crown’s board. “He definitely wants an easier life, and a less-stress life,” one colleague told the paper. “No doubt about that.”
Packer’s board exits were reportedly due in part to mental health issues, following a tough year when Crown exited its Macau and U.S. gambling investments.
Packer, who has three children living in Los Angeles with his ex-wife, Erica Packer, also finances Hollywood films via his RatPac Entertainment, which he cofounded with Brett Ratner, who directed the Rush Hour film series and X-Men 3: The Last Stand.
Stress is never good for you or your health. But with almost 54% of the Americans, stress has become part of their lives. It can be stress from work, family or could be of dealing with financial issues. Whatever the cause of stress, it isn’t good for your health.
Here are 8 simple steps to relieve stress from your everyday life.
Understand the Source of Stress
When it comes to stress, it’s surprising that most people don’t even realize they are stressed. Common indications of stress include tense muscles, clenched jaws, and hands or a feeling of cramps in your stomach. Other telling symptoms are frustrations and anger.
Whenever you feel stressed, find out the reason for your stress. One of the most common stress factors includes financial problems. Enlist help. Talk to a financial advisor. They will help you guide you out of your financial situation. For instance, they will guide you on how to deal with debt collectors effectively.
Other sources of stress could be your workplace or family issues. Find out how you can deal with them. Don’t leave everything to time. Try to find solutions for your issues. This will help you use your energy is a positive way, which can also be a great stress buster.
Practice Deep Breathing Techniques
When you are stressed, your body starts releasing stress hormones. When you feel an increase in heart beat and your breathing get quicker, sit down and practice deep breathing. Deep breathing activates your nervous system which in turn will help your body to relax.
Start by focusing on your breathing. Take a deep breath. Breathe through your nose. Fill up your lungs with air. Slowly release the breath through your mouth. Practice for 10x times. Bring down your breathing rate. Feel your body relaxing.
One reason for the increase in stress for many people is the decrease in physical activity. Your body needs physical stress, to give the brain some rest to relieve itself of all the mental stress.
When you exercise, your body releases hormones called endorphins. Endorphins are natural pain killers and help your body in combating stress. The release of these hormones also improves your sleep quality, thus improving mood and reducing stress.
Some forms of exercise you can try out are walking, running, yoga, dancing, swimming etc.
Use Your Senses
Sensory experience can help you deal with stress is an effective manner. When you employ the use of your five senses, you become more aware of your surroundings which help you relieve stress in a calming manner. Here’s how you can employ the use each of each sense to relieve stress:
Sight: Close your eyes and imagine your happy place. It could be your childhood home or just a beautiful place you went to recently. Another way to use your sight is to go outdoors. Go to a park or a scenic place. Talk a walk around. You can also put flowers in your home to enlighten it.
Hearing: Listen to some calming, good music. You can also turn on some background classical music to help you relax.
Smell: Light candles or burn essential oils. Some good calming scents you can try are Lavender, Germanium, Neroli, Rose, and Sandalwood.
Touch: Relax your muscles and body with a good massage. Get a professional masseur to unknot the tensions in your muscles. Give your spouse or partner a good kiss. Hug your children closely. Taking a warm bath or resting under a warm blanket will also do the trick.
Taste: Mindless eating can add inches to your waistline. That can also be a source of constant stress for most people. Whenever you eat, enjoy the entire experience. Take small bites and savor the flavor with each bite. Enjoy your favorite snack or meal. Give it time. Some stress relieving foods you can try out are dark chocolate, citrus foods and foods containing omega 3 fatty acids. You can also try drinking calming, herbal teas.
Unplug from the World
When most people feel stressed, they turn to media. They watch TV or scroll through their cell phones mindlessly. The idea is to switch off the stress by focusing on something else. But research concludes that the use of media including smart phones actually increases stress levels.
Unplug from the world and media. Even if you don’t feel stressed on a particular day, don’t let media entertain you. Turn off the TV for the rest of the day. Go without using the Wi-Fi on your cell phone for a day. Turn off your cell phone when you get home. If you can’t do it daily, do it at least three or four times in a week.
Get Together with Family and Friends
The right way to forget about your stress is by spending time with family and friends. Plan an outdoor picnic together. Laugh and smile together. Discuss your problems. Be each other’s support system. Don’t be afraid to ask for help.
When you spend time with your loved ones, your body releases oxytocin. Oxytocin is a natural stress reliever. This is especially true for women and children.
The venture capital firm cofounded by Facebook billionaire Eduardo Saverin and partner Raj Ganguly has raised hundreds of millions in new funding to invest in startups.
B Capital has raised $406 million in a first close of its second fund, according to a new regulatory filing with the SEC obtained on Friday. The firm, which wrote in the filing it had raised that amount from 62 investors since late March, indicated that it planned to raise more than that amount, which already tops the $360 million it raised for its first fund.
B Capital declined to comment on the filing or its funding plans.
Earlier in March, Forbes published a wide-ranging interview with Saverin, the cofounder of Facebook who moved to Singapore in 2009. In that article, Saverin and Ganguly revealed a strategy to invest in companies with an international focus—B Capital maintains offices in California, New York and Saverin’s Singapore—and ones that can benefit from a “special relationship” with Boston Consulting Group, the consulting firm that is one of the anchor investors in B Capital’s initial fund.
At the time, B Capital had made about 20 investments from that fund, using up much of its “dry powder,” as the industry sometimes refers to money available to invest in startups. A source told Forbes at the time that B Capital would look to raise a second fund of approximately twice the size of its first later in 2019. That remains the goal after this first filing, the source says now.
At the time, B Capital had recently expanded to bring on a seventh partner, Karen Appleton Page, a former executive at Box and Apple. With seven investment partners and check sizes that can run into the tens of millions, it’s not surprising that B Capital, still just four years old, would seek out so much money so fast.
“No matter how lucky or blessed I might be, I will never retire on a beach,” Saverin told Forbes in early 2019. “We are still so early into making the technologies that will impact the world.”
Read more of Saverin’s views—and see how B Capital is looking to stand out in a crowded venture capital market—check the full feature story here.
Follow Alex on Forbes and Twitter for more coverage of startups, enterprise software and venture capital.
Capital Today founding partner Kathy Xu laughs when she talks about her career-making early investment in Chinese e-commerce company JD.com, which began with a late-night meeting with founder Richard Qiangdong in 2006:
“We met at 10 p.m. and we talked until 2 a.m.!” she tells Forbes. “I gave him five times the amount of money that he asked for — I was so worried that otherwise he’d meet with other investors.”
Capital Today managed to become the startup’s sole Series A investor and Xu’s check — $18 million USD — paid off royally as JD swelled into an ecommerce giant, with Xu working closely with Qiangdong along the way, advising him on key hires and company branding. Two years after JD went public in 2015, her firm cashed out returns of $2.9 billion.
A couple years and a handful of new deals later, Xu is making her bold debut on the Forbes 2019 Midas List, ranking in the top 10 venture capitalists in the world in her first year of inclusion (her work has previously been highlighted on Forbes China’s list of top 25 women venture capitalists in China).
This year’s list features 21 investors who are either of Chinese nationality or work for a firm based in China, the largest number ever on the list and a tribute to the growing power of China’s startup and venture capital ecosystems.
Xu says that Capital Today, which manages approximately $2.5 billion, focuses all its energy on companies based in and serving China and has zero interest in looking outside the country.
“It’s a big enough market, the economy is doing well, the entrepreneurship is great, and we’re starting to see real innovation booming for the first time,” she says. “It’s a lucrative market to focus on.”
Xu says that her team disciplines itself to only five or six deals a year in business-to-consumer companies and spends a lot of time with founders that it invests in.
“There’s more and more money here now, so building a connection with the entrepreneur and spending a lot of time with them is more important than ever,” she says, citing proximity as an advantage over out-of-country investors who only make occasional business trips.
Beyond JD.com, other Capital Today portfolio highlights include Chinese gaming company NetEase, discount e-commerce site Meituan-Dianping, classified listings site Ganji.com (which merged with 58.com in 2015), Yifeng Pharmacy, which went public in 2015, and hot snack company Three Squirrels Snack Food.
Other Chinese investors who made this year’s Midas list are Sequoia China partner Neil Shen, who topped the rankings for the second year running, Qiming Venture Partners’ managing partner J.P. Gan, No. 5, and Hans Tung from GGV Capital, No. 7.
Anyone can survive the short-term fear of a roller coaster. Not everyone can endure the stress of entrepreneurship. Entrepreneurship isn’t like a ride or a game, where there is a finite ending to the experience. The stress and fear of entrepreneurship is pervasive, persistent, and cumulative over time. Chronic stress negatively impacts both our physical and mental well-being, and it severely hampers our decision-making abilities……