Driving Alpha: Keeping Ahead of VC’s Unpredictability With Industry Ventures’ Hans Swildens

Driving Alpha

Hans Swildens is the CEO and Founder of Industry Ventures and manages the overall business. As an early pioneer of the modern secondary market for venture capital, Hans created new ways to get liquidity for venture capital investments prior to an IPO or M&A event. Additionally, he was early to support the development of a new class of venture capital partnerships focused on seed and early-stage investing during the last decade. He directs the firm’s investment processes, operations, and limited partner relationships. Earlier in his career, Hans was a successful entrepreneur who co-founded and acted as President of Microline Software. Microline was acquired by Blaze Software (IPO) and was subsequently acquired by Fair Isaac.

Episode Chapters:

(00:00) Introduction

(01:24) The role of Industry Ventures in backing emerging venture capital firms

(02:54) Hans' unexpected transition from an entrepreneur to venture capital

(04:37) The success and sale of Hans’ first company, Microline Software

(10:59) Hans uncovers the strategies and pivots behind the growth of Industry Ventures

(17:22) AI’s potential impact on industries and innovation cycles

(22:23) Strategies for pitching to venture capitalists for new funds

(25:15) What are the three crucial types of successful VCs Swildens identifies?

(28:40) Work-life balance and its impact on success

(35:08) The nuances and critical importance of partnership dynamics and succession in venture capital firms

In this episode…

In a world where technology evolves faster than ever, is it possible to stay ahead of the innovation curve and reap sizable investment returns? Many investors struggle to adapt strategies while continuing to foster an entrepreneurial spirit, which is crucial for longevity and success in venture capital. How can LPs and VCs navigate these shifting sands without getting swallowed by the next big platform change?

Entrepreneur and venture capitalist Hans Swildens delves into his inspiring journey from tech entrepreneur to leading one of the top venture firms focused on small venture funds. Hans shares how he tackled the dotcom bubble's collapse by strategically pivoting from angel investing to secondary liquidity, ultimately growing his firm's footprint to $8 billion in committed capital. He outlines the inherent unpredictability in venture capital, the excitement around AI's potential to drive an extensive innovation cycle, and the value of maintaining work-life balance.

In this episode of the Driving Alpha podcast, Steve Brotman hosts Hans Swildens, CEO and Founder of Industry Ventures, for an insightful discussion about the unpredictable journey of venture capital investments and maintaining success amidst the challenges. Hans provides strategies for investment management success, highlights the entrepreneurial drive needed to create opportunities from market shifts, and champions the importance of work-life balance in sustaining a flourishing long-term career.