In almost 20 yrs in VC, I’ve seen over 50 failures (and lived countless of my own) for a host of reasons - timing, unit economics, execution and sometimes the idea just doesn’t work. Living with failure is part of the job description in Venture Capital. But it’s never easy. Each failure means a heartbreaking end of the journey for founders and their teams. Investors lose capital, and we don’t take that lightly. For VCs, it’s not a matter of brushing failure under the table, it’s an opportunity to review processes, decision-making and learn. The benefit of having a multi-generational team is that we learn together. To Dany Milham - it was a privilege to offer you a term sheet at the start of MILKRUN’s journey. A value we live and breathe at AirTree is Make New Mistakes. If you’re of the belief that mistakes shouldn’t be made at all, venture and startups aren't the space for you. For everyone else, keep on keeping on - Aussie and Kiwi ingenuity is world-class and we’ll continue to learn, iterate and build the next iconic tech companies.
Australia certainly needs to get better at “failure”. It’s too quick to throw founders and others under the bus forgetting how hard EVERYONE works for success. No one gets up every morning when either leading, working in or backing a venture with the mindset of “let’s fail and continue to believe our own BS”. Everyone works with the fervent belief of success. It’s a journey. May start well but the journey is never a straight line. Lots of major ups and downs. Those that can continue to apply their hard work and sweat even after set backs should be reveared and respected. It’s too easy to throw knifes and rocks. Much harder to put your shoulder to the wheel helping and then being an acknowledged participant in something that perhaps is just not working despite best efforts. Much respect Craig Blair to Airtree and all of your courageous founders and their teams!
As a Founder, if a VC doesn't have failures, they aren't a VC, as Startups are risky, and if one like this invests, then I'm not pushing the boundaries either. How a VC is measured is how they deal with the failures, as that shows their mettle, and responses like this show the value Air Tree and people like Craig Blair bring to this. This is why I would like people like this on my Cap table as they are there for me, and when it doesn't work out, they are there also. Been on the receiving end of failure, but have learned more from it each time and has allowed me to build what I have now.
Steven Ducat
1y
Craig, your perspective on embracing failure as an integral part of the venture capital journey is both refreshing and insightful. It's essential to recognize that while failure can be disappointing, it also offers valuable lessons and opportunities for growth. I couldn't agree more that the key to navigating failures in this space is to fail fast, recover quickly, and continuously assess risks to ensure that setbacks can be overcome. By adopting this mindset, both investors and founders can maintain resilience and agility in the face of challenges, enabling them to pivot, learn, and iterate more effectively. Your emphasis on the importance of a multi-generational team further highlights the value of diverse experiences and collective learning. As the ecosystem of innovation continues to thrive, let's celebrate and learn from our failures, fostering a culture that encourages calculated risks and supports continuous growth for Aussie and Kiwi ingenuity.
I have tonnes of new mistakes you can make with under represented founders - diversity and all ✊🏼
Paralect
1y
It's truly inspiring to see how embracing failure as a learning opportunity can lead to growth and innovation in the VC and startup space. At Paralect, we also believe in the importance of learning from our mistakes and supporting each other in our journey. Craig Blair, thank you for sharing your experience and for being a testament to resilience and determination. 🙌 To everyone in the startup ecosystem, let's continue to make new mistakes, learn, and build together! P.S. It would be cool to hear more about the key learnings and insights you've gained from your experiences. How have these lessons shaped your approach to future investments and support for founders?
Luther Poier
1y
Well said Craig. The more we transform failure - whatever the cause - into learning, the faster we can iterate and grow our businesses and the economy. 'Nothing ventured, nothing gained' - As true as ever.
I agree with your reflections Craig Blair. I've spent 14 years in Silicon Valley and the quality of Australian entrepreneurs is first class. They need bold venture investment. If there's one thing I've learnt about US (and Israeli) investors in contrast with Australians, it's that their environment is highly competitive and life is urgent. They crawl over each other for a competitive edge. They're prepared to take a risk. They want to be sold.
Living with, understanding and growing from failure is part of life... People go further when they figure this out. You learning nothing from success, and everything from failure.
Digital Strategy, Project Management & Marketing. Building an AI Investment and Management Consulting Model in my spare time...
1yAlas failure is central to the Venture Capital portfolio model - even more so in the 21st Century where even the flagship funds fail to consistently beat passive investing The industry's reputation for delivering outsized being better understood as a distant memory of an early era of computing than the output of a scalable system for investing in disruptive innovation https://tymbals.com/T5SW29.php