Uncapped #37 | Saam Motamedi from Greylock Partners
Timestamps are as accurate as they can be but may be slightly off. We encourage you to listen to the full context.
Podcast Summary
Saam Motamedi, General Partner at Greylock Partners, shares insights into venture capital's evolution and what it takes to build enduring firms. The conversation explores Greylock's 60-year history, from its founding in 1965 as one of the first multi-LP venture firms to its current focus on enterprise software and AI applications. (01:38) Motamedi discusses the firm's transition from East Coast to West Coast, its success with company initiations like Workday and Palo Alto Networks, and the importance of maintaining a service-oriented mindset in venture capital.
- Main themes: The conversation centers on building durable venture firms, the importance of deep founder relationships, and strategies for creating alpha in today's competitive venture landscape.
Speakers
Saam Motamedi
Saam Motamedi is a General Partner at Greylock Partners, focusing on enterprise software entrepreneurs at seed and early stages in intelligent applications, cybersecurity, AI, and data infrastructure. In 2019 at age 26, he became Greylock's youngest General Partner in its 54-year history. His portfolio spans 14+ companies with collective valuations exceeding $10 billion, including Abnormal Security, Cresta, Snorkel AI, and Braintrust.
Jack Altman
Jack Altman is the host of the Uncapped podcast and founder of AltCap. He previously founded Lattice, a people management platform, and has extensive experience in the startup ecosystem both as a founder and investor.
Key Takeaways
Maintain a Service-Oriented Mindset
Motamedi emphasizes that venture capitalists must view themselves as being in the customer service business, with entrepreneurs and LPs as their customers. (05:16) This means being available when founders need help, even during Christmas or late nights. The core ethos should be "winning the Oscar for best supporting actor to the entrepreneur" - never being the star of the show but always being the person founders call first when something goes wrong. This service mindset differentiates successful VCs from those who treat venture as primarily a fee business rather than a carry business.
Focus on Market Makers vs. Market Takers
There's significant alpha in being a "market maker" rather than a "market taker" in venture capital. (43:56) Market makers create proprietary opportunities through early-stage company initiation or late-stage concentrated rounds, while market takers participate in auction processes. The barbell strategy of "first money and last money" provides the best opportunities - either investing at the very beginning when companies are raw, or providing large late-stage rounds that few firms can construct.
Build Deep, Concentrated Relationships
Rather than spreading efforts across many portfolio companies, focus on building intimate relationships with a smaller number of companies. (12:53) Motamedi describes how Greylock's deep involvement with companies creates network effects that compound over decades - engineers from one portfolio company become founders of the next, creating an 18-year flywheel of relationships. This approach requires being "causally impactful" to successful investments rather than just sourcing deals.
Implement Inputs-Based Performance Management
Traditional venture performance metrics focus on outcomes that take years to materialize and involve significant luck. (29:41) Greylock developed an inputs-based approach with 18 specific metrics across seeing opportunities, deciding, winning deals, building companies, and internal partnership. This includes measuring whether partners see 75% of competitors' deals in their sectors and maintaining responsiveness SLAs. This system allows firms to evaluate and develop talent without waiting years for investment outcomes.
Navigate the Capital River Strategically
Understanding the "capital river" concept is crucial for early-stage success. (55:58) Companies that get into this river benefit from momentum where capital flows easily, enabling better hiring, product development, and customer acquisition. Getting portfolio companies into this river requires focusing on early customer adoption quality, strong talent acquisition, and proper foundational architecture in the first year. This is more important than just revenue metrics, as companies in the river typically outperform those outside it.
Statistics & Facts
- Greylock turned 60 years old in 2024, making it potentially the oldest venture firm in the US to have started with multiple limited partners, pioneering the GP-LP relationship structure. (01:58)
- 93% of Greylock's current fund dollars (from an $850M vehicle that's 85% allocated) went to companies where they were the first institutional capital. (36:06)
- There are approximately 22,000 companies worldwide that generate over $1 billion in revenue, and these companies control about 93% of the estimated $1.4-1.5 trillion in global IT spend. (67:27)
