In early 2024, two prominent venture capital firms, Andreessen Horowitz and Lerer Hippeau, made the surprising decision to pivot away from consumer tech. This move sparked a lively debate on social media about whether there are still opportunities in this space. However, Maven Ventures’ Jim Scheinman and Sara Deshpande disagree with this notion, asserting that there are indeed opportunities to be seized.
To prove their point, Maven Ventures has recently raised $60 million in capital commitments for its fourth fund, which will focus on "massive consumer tech trends." The firm’s founders believe that this is the perfect time to invest in consumer tech, as it is currently experiencing a trough in the cycle. According to Scheinman, this means that there is less competition and noise in the market, making it easier for investors to spot opportunities.
A History of Seeding Game-Changing Companies
Maven Ventures has an impressive track record of seeding companies that have gone on to become household names. One notable example is Zoom, which was seeded by Scheinman himself. He even came up with the name for this videoconferencing giant. Another example is Cruise, an autonomous vehicle maker that has received significant investment from Maven Ventures.
When asked about the notion that no one wants to invest in consumer tech anymore, Scheinman countered: "It’s not true." He explained that like other sectors, consumer tech has its cycles where consumers either enthusiastically adopt new technologies or reject them. Currently, the sector is experiencing a trough, but this presents an opportunity for investors.
The Rise of AI and Its Potential to Transform Consumer Tech
Scheinman pointed out that web3 was initially thought to be the next big thing in tech, but it has been eclipsed by artificial intelligence (AI). He believes that AI will have a significant impact on consumer tech, enabling companies to create more personalized experiences and improve people’s lives.
Maven Ventures plans to invest in companies that are leveraging AI to transform various industries, including healthcare, climate, and sustainability. The firm is committed to seeding similar consumer tech trends, including applications of AI, personalized medicine, climate and sustainability, family technology, and fintech.
Fund IV Brings Total Assets Under Management to $200 Million
The new fund brings Maven Ventures’ total assets under management to $200 million, with more than 50 investments made so far. The firm makes six to eight investments each year, writing average check sizes between $1 million and $1.5 million.
A Focus on Founders Who Understand the Potential of AI
One key theme for Fund IV is investing in founders who have unique insights into how technology can improve life for consumers. Scheinman emphasized that Maven Ventures is looking for founders who are not only building innovative products but also have a deep understanding of their potential impact.
Conclusion
Maven Ventures’ recent fundraise and commitment to consumer tech demonstrate the firm’s confidence in this space. With its impressive track record of seeding game-changing companies and its focus on AI, Maven Ventures is well-positioned to capitalize on emerging trends in consumer tech.
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