Brad Feld

Tag: themes

Brooks and KenaiWoof! We just announced Foundry Group’s investment in Rover.com this morning. We led a $7m financing in the leader in digital dog boarding that connects dog owners with approved, reviewed, and insured sitters. Rover.com is part of our marketplace theme, which now includes investments in SideTour and PivotDesk. I’m psyched to be joining the board, working with my good friend Greg Gottesman at Madrona on another Seattle-based company.

Two years ago we probably wouldn’t have considered Rover.com as it would have fallen outside our active themes. Marketplace is a good example of how our themes evolve. Seth and I worked together on ServiceMagic in the 1999 – 2004 time frame (IAC acquired it in 2004 for $180m) so we had a deep understanding of how a heavily metric-based buy/sell marketplace worked. However, at Foundry Group, we didn’t start paying attention to this theme again until we made a seed investment in SideTour coming out of the TechStars New York program. In this case, Seth had been SideTour’s mentor and we classified it as “other” as we sometimes make exceptions and invest in companies outside our themes when (a) we love the founders and (b) we are interested in what they are doing.

Last summer, Jason mentored the founders of PivotDesk as they went through TechStars Boulder. At the end of the summer, we decided to invest as well as categorize SideTour and PivotDesk together in the same theme, which we originally named RAM, after Ryan’s initials, which happened to be the same as the abbreviation for “remnant asset monetization”, the key element of each of these companies that we were interested in.

Specifically, we aren’t interested in investing in any two-sided marketplace. Instead, we are looking for ones that have a very clearly defined inefficiency around “remnant assets”, or assets that expire if not used in a timely fashion. We’re also looking for ones that have huge under-accessed supply or demand, where mobile and location have an immediate impact on utilization, and where existing transaction friction – either as a result of process or trust – exists.

Rover.com was the first of over 100 companies we’ve seen in the last three months that fit these criteria. As a bonus, we loved the entrepreneurs and the domain, as three of the four of us are dog lovers (Jason, sadly, goes for cats, but we have Cheezburger for that.) Furthermore, it’s our fifth investment in Seattle, joining SEOmoz, Cheezburger, BigDoor, and Gist (now part of RIM). And it’s got two linkages to Startup Weekend (where I’m a board member) – they are both Seattle-based and Rover.com was conceived at a Startup Weekend.

I’m psyched to be an investor. And, every time I get in my Range Rover, I’ll think of Aaron. Especially when I’m with my golden retriever Brooks.


Once a quarter my partners (Seth, Ryan, Jason) and I spend 48 hours together. Unlike a typical offsite that ten zillion organizations have, we tend to spend less time on formalities and more time on wider ranging, forward looking discussions about what we are doing, both professionally and personally.

Last night, over an amazing meal, we ended up talking about what we’ve been investing in over the past four years. When we reflect on the 37 companies we’ve invested in since we raised our first Foundry Group fund in 2007, we’re delighted with the mix of companies and entrepreneurs we are working with. We have a very clear thematic strategy that we’ve discussed openly, along with a few other key principles such as being willing to invest anywhere in the US and being syndication agnostic.

At dinner we zoned in on all of the current activity in early stage tech. There’s an awesome amount of exciting stuff going on right now and a real entrepreneurial revival throughout the US. Sure, there’s all the inevitable bubble talk going on which I’ve encouraged entrepreneurs to simply ignore and play a long term game instead, and once again many VC firms are spreading themselves wide and chasing after whatever the latest interesting thing is. But entrepreneurship, especially throughout the US, is vigorous, exciting, and creating many really interesting companies, some of which will be important in the future.

When we think about what has driven the success of some of our investments, we realize that we’ve chose the macro environments to invest in really well. Our HCI, Adhesive, and Distribution themes are all great examples of this. With HCI, we are at the very beginning of a massive shift over the next 20 years around how humans and computers interact. Adhesive plays the macros of digital advertising – every year meaningful ad spend is shifting annually from offline to online and that will continue for quite some time. And with distribution we’ve benefitted from the application of the concept of social to extremely large existing online markets where innovation had stagnated.

Our conversation shifted to 2015. While we still believe there are many exciting opportunities within our existing themes, we think that given the velocity of technology innovation and the way we use technology, things will shift dramatically over the next four years. Completely new and unexpected innovations are emerging and entrepreneurs who are obsessed with transforming existing industries, creating radical new technologies, or dramatically changing the use case of existing technology are starting to work in 2011 on things that will matter immensely in 2015.

We have one new investment coming up that reflects this and, when we start talking about it, you’ll see the kind of entrepreneur and company we are searching for. We decided last night to look for a lot more of it. While our deeply held beliefs about what we invest in and how we invest are the same, we’ve decided to open up our intellectual aperture and make sure we’ve incorporated a stronger view of “what is 2015 going to be like” into our thinking.


At Foundry Group, we often talk about our thematic approach to investing.  Steve Bell from StartupTrek did a nice job of capturing my perspective in under eight minutes.