
Friday Apr 21, 2023
Jonathan Hollis | Managing Partner at Mountside Ventures | Understanding And Leveraging Network Effects
In this episode of the FounderTech Decoded podcast we get the chance to talk to Jonathan Hollis, who is Managing Partner at Mountside Ventures and whose mission is to optimise the fundraising process for European startups and investors.
We discuss how asymmetry around network effects continues to influence and inform most of the capital allocation in the early stage space. One perspective as to why is that in the course of their lifetime, even an experienced founder will probably be at most across 2-3 companies, whereas an experienced VC will review 100s of deal flow opportunities - possibly and probably per quarter.
This creates an imbalance in market perspectives and network effects that spill into and inflect ongoing deal dynamics.
We explore the lack of diversity, regionally and impact currently in venture and ask whether this due to inefficiencies in capital deployment identifying and backing talent early or as a result of the reliance on primary and secondary networks to source and fund deal flow. With warm intros still making a successful investment 13 x more likely!
Finally, we talk about the 3 categories of capital allocation that Jonathan thinks might be help drive innovation in the deployment of venture:
i) data driven capital ii) alternative / revenue based finance and iii) SPV vehicles.
All of which are currently generating a much need optionality and choice for both founders and investors engaging with and evaluating deal flow.
Connect further with Jonathan:
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