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Christine Choi is not your typical venture capitalist. A veteran of both the corporate and nonprofit worlds, she’s mastered the art of translating the scrappy startup mentality into any environment—be it boardrooms or space hangars. With a reputation for building deep, authentic networks that turn even weak ties into formidable connections, her playbook focuses on the humans at the center of every story. 

As a brand leader, Christine’s passion for storytelling is rooted in a genuine curiosity that turns mundane details into captivating narratives. Whether she’s championing the voices of engineers on the factory floor or navigating a crisis with poise, she remains unwavering in her commitment to authenticity.

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Christine has made a career of embracing uncertainty. “Crisis doesn’t have to be scary, and pivoting is not a bad word,” she says. “I've made many career pivots, from public education and arts nonprofits, to music festivals and cannabis, to flying cars and commercial space. These decisions were driven by curiosity and wanting to learn more.”

As someone who values listening as the most important leadership skill, Christine’s not just about occupying the space at the table—she’s about creating space for others, encouraging them to join in the conversation. You’ll find her crafting narratives that celebrate the underdogs, the creatives, and the genuine leaders shaping tomorrow.

We sat down with her to talk about communication, community, and M13’s model of working with founders. 

Christine’s recent publications

• M13’s RocketGuide to Early-Stage PR and Communications
• Startup Comms Strategies from Unlikely Sources: Casey Neistat, Stacy London, and Dan Porter in Conversation
• How to Make the News: The Dos and Don’ts of Pitching Reporters
• 4 Lessons on Mental Wellness for Founders
• AI, Crypto, and Riding Hype Cycle Waves with Brad and Latif

On crisis and communication

What is a common misconception people have about brand, comms, or PR? 

One misconception I see is the idea that crisis is scary. Crisis can be an opportunity to bring teams together and reset an understanding of how we work together, how we communicate, and what it is we know about what we’re doing. 

I often get questions about the crisis playbook I helped build almost ten years ago, when the Virgin Galactic flight test accident happened. This was the early days of the commercial space industry. The accident stirred concern that it would be the end of the industry, because the spaceflight program was being tested, trust was being built, and it was such a tragic event. Some people said, well, commercial space people don’t know what they’re doing. They’re not trustworthy. They’re moving too fast and not thinking about safety. When in fact, none of those things were true. 

This crisis was an opportunity to ask: How can we communicate better with the general public, regulatory partners, and our own community? Especially with new pioneering tech, it’s important to include stakeholders on the journey of vision, process, and progress. Most founders won’t have to face a crisis with such high stakes, but in existential moments, teams will rally around their true mission and why it matters.

I think early-stage companies in particular are well-equipped to deal with the unexpected, because they’re constantly experimenting and responding to change.

Can you share a storytelling tip founders might not have heard before? 

Underdogs have a lot more fun! When you're obscure or not the incumbent, there are more ways for you to be creative and flex your freshness—and not fall back on safe corporate speak.

What’s something you learned from your time in the commercial space industry? 

In new tech movements—like commercial space, AI, or blockchain—there’s inspiration in uncovering the stories of people building industries and adoption that may not yet exist. Spark trust and understanding with fresh voices and authentic stories from “the hangar floor.” 

What’s a comms trend you don’t like right now? 

Quantity over quality. You may have raised a lot of capital, but a movement is energized by the right people.  

How are you thinking about AI and community right now? 

AI is a reminder to flex our humanness. In a time when we are trying to seek even greater efficiencies and answers with the help of AI, I love that people are seeking out other people more than ever. We’re seeking humans to curate experiences, ideas, and information. 

A community expert once told me, “Curation is one inch away from comfort.” I love that idea, and I think at M13 we do that with things like Future Perfect, where our community expects to hear from unlikely pairings of experts to take us in unexpected directions and to insights you didn’t know you need to know.

What makes a founder stand out to you? 

Purpose. If a founder feels a tremendous amount of conviction about what they're doing, it’s infectious. They attract and retain talent, investors, and partners. You can't do anything alone, so it's really important to express purposeful passion that gets other people buzzing and excited to be part of what they’re building.  

Brand sits at the center of so much. Storytelling might start out with something seemingly tactical, but it ends up being so much more than that.

What parts of your experience in nonprofits and commercial space are relevant to the work you do with founders today? 

Communication is more than “get me press” or “make me viral.” It aligns teams by bringing the mission and values back up front to reinforce the why and how—and clarifies behavior that no longer serves the company. 

One thing I appreciate about the Propulsion team is working collaboratively with others, including Matt Hoffman, our Head of People. He has a similar approach to communications, brand building, and focus on people. 

When there are challenges that come up with portfolio companies and their teams, Matt and I encourage founders and their executives to think first about people; make sure that bad news or a change is communicated quickly and with a lot of empathy; and make decisions with respect for the impact they’ll have on people’s lives. We help product leaders become company leaders.

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M13 and beyond

What made you want to join M13? 

Pursuing deep, immersive learning in a new sector and contributing fresh thinking and transferable skills sums up my career journey. My friends call it “Christine swimming upstream.”  It’s important to work alongside genuinely good people. I got lucky fast on the founding team of Teach for America, and then again at KIPP, and then at Virgin, where I worked with Richard Branson and other leaders to build new Virgin companies and industries like commercial space. When it came to venture capital, I knew Carter and Latif as friends, brothers, and husbands of people I adore. That familiarity accelerated my trust in their vision for M13.

What is something most people don’t know about you? 

I used to be fluent in Swedish. I went to elementary school in Stockholm when the only option for me was French language or Swedish school for diplomats’ kids. People think I still have it in me—but I haven’t been back to test that theory. 

Outside of M13, what’s a project you’re working on right now? 

One of the most frequent questions I’m asked is, "Why did you leave Virgin?" I’m writing a book about change, professional transitions, and saying goodbye, something I’m quite bad at. It was something I had to consistently do as a kid when we moved countries. That might explain why community is so important to me. My friend Sylvia says I’m a translator who understands the different languages of communities and can bridge them. And my relationship with Richard is even better now than when I was at Virgin. 

Lightning round

First job? 

In high school, I sold movie tickets at a local fine arts theater.

Guilty pleasure?

Resting with my cats, watching British procedural crime dramas. 

Daily habit? 

I’ve been getting into strength training at my very non-bro-y gym.

Music recommendation? 

Right now I'm having a renewed love affair with WBGO, the Newark-based jazz radio station.

If you weren’t working in tech or venture, what would you be doing?

I’d be writing a travel blog. 

And as a travel writer, where would you be going? 

Oh wow—where wouldn’t I be going?

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Seven years ago, Brent Murri was M13’s first-ever investing hire. Today, he’s a partner at the firm. 

This propensity to stick with things over the long term is a theme in Brent’s investing career. He looks to build relationships with founders that last decades, not quarterly reporting cycles. Unlike most M13 partners, he’s had a focused career in venture investing for 10+ years and takes an almost academic interest in the way venture markets function in the broader economy. And as a MasterClass-trained home chef, he has the patience not to open the smoker before a dish is truly ready.  

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M13 co-founders Carter and Courtney Reum won Brent over to M13 in 2017, and today, he looks for founders with the same qualities he saw in the Reum brothers back then: grit, a desire to do things differently, and enthusiasm for the second act, not just the debut.

We sat down with Brent to talk about where he’s excited to invest, changes in the macroeconomy and creator economy, and how he helped build M13’s investing team as investor hire No.1.

Brent’s recent publications

• M13’s RocketGuide to Investor Updates
• Investing in the Future of Commerce
• Our 2024 Predictions

Q&A with venture investor Brent Murri

What is exciting to you about AI right now? 

I’m interested in the convergence of AI and marketing/advertising. For B2C businesses, marketing to consumers has been extremely hard. CAC (customer acquisition costs) is rising, data privacy changes are making targeting harder, and many marketing channels that marketers used five or six years ago—like Facebook, Instagram, and TikTok—are not the reliable sources of ROI they used to be.

B2B businesses are experiencing the same challenges across their channels: Email open rates are down, attribution is harder to measure, and the proliferation of point solutions make it hard to make sense of all the data being gathered. 

I'm intrigued by how companies are using AI to better target their buyer, better track the end consumer, and more effectively measure their marketing efforts. 

For example, say a brand wants to find a YouTube influencer who’s a natural fit to talk about them. Rather than a human spending hours—or weeks—watching videos to find those influencers, there are solutions that use AI to scrape and understand language in YouTube videos, then identify which users are most aligned with the brand. Using AI to find the right messengers for your product is a really interesting use case to me. 

How is the creator economy changing? 

The creator economy 1.0 was about making it possible for anyone to build an online audience. If someone had a unique or funny take on something, they could gain a huge following using massive distribution channels like YouTube and TikTok. The hard thing about that is that your success is directly tied to the amount of time you spend producing content, and that doesn’t scale. 

Today, I’m looking for businesses that help creators build durable, lasting businesses that aren’t directly correlated with their time spent. These can be advertising platforms that help creators make money, or “business-in-a-box” offerings like Pietra that let creators build consumer product companies that can outlast them.  

What is a common misconception about venture that you want to clear up? 

I think the media often gives VCs way too much credit for having control over exit decisions. As a VC investor, I’m not sitting there with a red button that says, “SELL.” The decision to exit involves a much more complicated system, including founders, shareholders, the board, and most importantly, the buyer (an IPO, M&A, or secondary transaction). 

Obviously, one of the best ways to get liquidity in venture is through an IPO. But if you look at what’s happened to the IPO ecosystem over the last ten years, you see that’s become much harder. In 2018, median revenue at IPO was $90M. Today, the median revenue at IPO is $190M. 

In other words, market requirements for IPOs have more than doubled. That’s not up to VCs, though it does affect the way we return our funds. That’s why we explore all types of liquidity options for our founders and LPs, including secondary transactions when appropriate.

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As an investor, what makes a founder stand out to you? 

I'm drawn to founders who have a never-quit mentality. Whether they are multiple- time founders or a first-time founder with previous operating experience, I really admire grit and perseverance.

An example of where I've seen this play out well is with founders whose first startup did reasonably well—so they’ve seen what success looks like, and how growth happens—but they aren’t finished yet. Maybe they now feel like they sold too early, or the market shifted, or something happened in their personal life and they got out. So they come back to their next project with a bit of a chip on their shoulder, something more to prove. I like a good sequel. 

Because we invest at the early stages, it’s likely that the idea we originally back will change significantly—so I look for founders who I believe, when the first or second or third iteration doesn’t work out, won’t quit. 

For example, I backed a founder whose first business didn’t work out. We discussed two choices: (1) I take back the remaining investment, or (2) he puts that money toward a new idea that he was passionate about pursuing.

Other investors leapt at option one, but I told him, "We believe in you. Use our investment toward this next idea." The founder appreciated that I was backing him, not just his first idea, and the next idea turned out to be even better than the first.

I value that kind of resilience. It’s a quality I recognized early on in our co-founders Carter and Courtney, which played a role in why I joined M13.

How do you like to work with founders? 

I don’t want to be a blue skies investor. Here’s what I mean by that. 

When I started working with John and James Erck, the founders of Rebuy, I told them, “Every month at our check ins, I’m going to ask, What’s not working? What can we fix this month?” I think knowing that we could have that relationship really gave them a sense of security and has helped us solve problems much faster. 

What is something unique that you bring to the table as an investor?

When a founder shares a challenge, I try to check my ego, listen, and not lean overly hard on past experience. Instead of prescribing solutions, I try to uncover and understand all the symptoms and get the diagnosis right.

If I don’t have the right answer myself, I’ll move heaven and earth to help my founders find someone who does. Recently, I had a founder ask me about API pricing strategies for a new product she is launching. That’s something I don’t have experience with myself, but within 24 hours, I had gotten her the expert she needed to have that discussion. Afterwards, we discussed the optimal strategy together. 

I’d say my superpower is being able to connect people together very quickly and without ego. It's like being the “air traffic controller.” My job is not to fly all the planes, but to point them to where they need to go.

You were the very first investor Carter and Courtney brought on. What made you decide to join them?   

I wouldn’t have joined M13 if it wasn’t for Carter and Courtney's vision of Propulsion. The co-founders pitched me on building a new type of venture firm with more operators than investors in order to support companies early on. That was a completely foreign concept to me. My former firm had about 50 full-time investors, and only two part-time operators to help the portfolio, so it was an entirely opposite ratio. But I knew this was exactly the kind of help founders would want as they scale. 

What was it like to build a venture investing firm from scratch? 

My first year and a half, we didn't even do any investing. It was all about setting up the firm. We formulated our investment strategy, portfolio construction and differentiation in a crowded VC market. We hired our first lawyers, accountants, and fund administrators, the infrastructure a firm needs to operate. I talked to a lot of people to introduce us to prospective LPs, then spent a lot of time traveling around the country pitching LPs. It was an intense first 18 months. 

We wouldn’t have pulled it off without the countless fellow GPs, especially in LA, who graciously offered their time and counsel. I’ll be forever grateful for this.

What is something most people don’t know about you, outside of your life as an investor? 

I’m actually a pretty good cook. I love to grill and smoke. I was constantly on MasterClass during lockdown—I watched classes by Thomas Keller, Gordon Ramsay—and I learned more of the fine techniques of cooking. Being in the kitchen or outside at the grill is my escape. 

What’s a daily habit of yours? 

I try to end my day by spending 15 minutes reading. Not social media, not news—just a book. 

To close out, let’s do a quick lightning round: 

First job?

My dad is a home builder, so my first (unofficial) job, starting around 12 years old, was going to the job site and helping out. I did everything from cleaning up scraps to sweeping to laying gravel. The experience really taught me the value of a hard day’s work early in my life. 

Favorite app?

X. (I’m @brentmurri.)

Guilty pleasure? 

I have a huge sweet tooth, and I’m a sucker for all ice cream. 

Hidden talent?

I’m fluent in Spanish, which I learned while on a Mormon mission when I was 19. I went to Washington, DC, and I worked with a predominantly Hispanic population. I don’t get to use it a lot today, but I do still speak Spanish sometimes when I talk with my Chilean sister-in-law or order street tacos in LA. 

Book, movie, or music rec?

Setting the Table, by Danny Meyer from Union Square Hospitality Book, really teaches you how to be a good host. I try to incorporate that hospitality into my business practice. Asking, How does someone really feel when they’re with you? Did they enjoy their time? Do they want to come back? 

If you weren’t working in tech or venture, what would you be doing?

Probably hosting a cooking show—though my dream is to take over for Guy Fieri and host Diners, Drive-Ins, and Dives.

Startups are always storytelling. 

From the moment companies start sharing their vision with prospective talent and investors, they are communicating their brand. The startup mentality of agility and iteration can work well in today’s shifting media landscape, as our phones enable every platform, friend, and influencer to become a media channel. In a world where we’re always communicating, the first step in a communication strategy is to rethink how audiences are persuaded to try, buy, change their mind—and to trust. 

At this year’s Future Perfect conference, we convened filmmaker Casey Neistat, TV icon and author Stacy London, and Overtime founder and CEO Dan Porter to talk about the why, what, and how of storytelling. Their conversation challenged the startup focus on growth metrics as brand building—and encouraged a refocusing on authenticity and personal connection.

In a metrics-obsessed industry, I believe in the power of what can’t be measured. The satisfaction of an honest day of work, an epiphany that changes your worldview or direction, a meal with friends, holding hands with your elder parent—these are the things that touch and shape us at a cellular level. And these “unmeasurables” become the acorns of stories that reveal our genuine selves, shape the direction of our teams and business, and open the door for audiences and partners to connect.

“The top of the funnel has never been wider,” says Casey, the OG YouTube creator whose influence is evident in today’s top trending content. “Media and content used to be exclusive, and now it’s wide open. I celebrate the access we all have, but it doesn’t mean everybody gets to be good—and the bottom has not budged.” 

In this noisy landscape, what is the right startup strategy for brand communications—and how can companies leverage tension, curiosity, and authenticity, in their storytelling? Below, our panelists explore some of the key tensions and opportunities that can guide startups as they operationalize early stage communications strategies and brand reputation. 

Authenticity over metrics 

Data can help guide strategic marketing decisions and launch campaigns. But what happens when there is no precedence or data? Embrace the unknown and listen to the people who are in the know. When the engineers of Larry Page’s EVTOL company voiced concerns that our vehicle would be compared to a drone, I invited the biggest content creator known for drone-breaking videos to fly our personal flying car. That’s how I got to know Casey Neistat. 

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A parent by the age of 16, Casey worked at a seafood restaurant scrubbing pots before getting recognition and awards as a filmmaker. After YouTube launched, his daily vlogs made him the original YouTube creator. 

For Casey, content creation was driven by curiosity, not metrics—putting him at odds with today’s social media and startup cultures, where algorithms and metrics rule.

Casey encourages a focus on making things that can actually change the world, not just get views. “Thinking I need to be like this guy is a huge mistake. Instead of the creative spirit of an individual, it's about creativity by committee. That doesn't speak to me in any meaningful way.”

Today, you're able to literally craft content for social metrics, and it's a race to the bottom with creativity.

——Casey Neistat, Filmmaker

“Metrics are arbitrary, but necessary,” says fellow panelist Dan Porter. Dan has found repeated success as a founder in gaming, social media, and sports media. “They’re a good shorthand.” Before founding Overtime, recently named a Time 100 Most Influential Company, Dan started and sold two tech companies, and before that he and I were on the founding team of Teach For America and worked together in the early growth of Virgin’s North America portfolio. 

As Dan points out, metrics are useful as shorthand for progress—but true innovation comes from passion and creativity that can't be measured. 

Humans > logos

Years ago, LinkedIn EIC Dan Roth told me, “People follow other people, not brands.” 

The ability to convey authentic, human-centered stories is one way to build a brand moat. Personal narratives establish credibility and relatability far more effectively than corporate messages. Stacy London’s long-running fashion show What Not to Wear makes her a beloved personality, especially as she tackles tough topics. As she explains, “Style and self esteem go together.” 

Stacy’s career journey has taken her through grief, loss, shame, stigma, menopause, and education. “A billion people are going to be in menopause next year, and they don’t know anything about it,” she says, “They don't know they shouldn't be ashamed.”

I look for experiences that are hard to talk about, where it’s hard to connect people to each other—but once you do, you can create a community that’s more than extractive consumption.

——Stacy London, TV Host & Author

Stacy’s menopause advocacy highlights how founders can leverage personal challenges to build meaningful solutions in overlooked markets. By sharing real-life experiences in areas she is genuinely curious about, she has deepened connections with new and loyal fans and differentiated her brand in a crowded marketplace.

Casey also brings a human-centric approach to content. He began daily vlogging on YouTube to document what it was like to build a venture-backed technology company. “After three days of watching eight programmers write code, it became more about: What interestingness can I squeeze from my life? You start focusing on minutiae, then you keep drilling deeper and deeper. And I did that for 800 days in a row."

Casey’s focus on compelling storylines and consistent posting resulted in a massive following and influence—and it helped raise capital for the startup.

Focus on community to build product-market fit

To build a company, “you have to know something no one knows,” says Dan. For his third startup, he had the idea to engage an overlooked GenZ market that didn’t watch live sports. 

Creating high-quality, relevant, and shareable content can help attract and retain customers, build brand authority, and drive organic growth. By producing compelling shareable sports highlights on social media, Overtime built a community of GenZ sports fans. As a result, the company has grown community interaction (with over 100M followers across its social platforms) and built the brand credibility to expand into sports leagues. 

No one is freaking out about where to watch Friends. Audience development is about meeting audiences where they are.

——Dan Porter, Overtime Co-founder & CEO

Storytelling as a skill is also vital for building investor trust. Iterating on a business model, with the agility to adjust to market feedback and changing conditions, is a differentiator. Dan credits his ability to explain the evolution of his strategy for his success in winning over investors, partners, and talent.

The road ahead 

Storytelling is at the heart of persuasion. Relationships start with curiosity, and a strong communications strategy must aim to pique curiosity with shared interests, meaningful experiences, and unusual—controversial, fresh, from the heart—insights. 

There’s no silver bullet for brand building. Leaders get better at storytelling with road-tested practice and a willingness to mine vulnerabilities for anecdotes. As Stacy says, “Your attachment to who you were instead of who you are is stopping you from being the best version of yourself.”

What does this approach to storytelling look like? Our brand flywheel is a good place to start.

Balance creative passion with practical strategies and think deeply about your audience. Ask the questions: Where and to whom do they go to be persuaded? How can you be a meaningful part of their daily lives and habits? Finally, say yes to in-person events. In-person experiences open the door for conversation and authentic connections, which over time build cohesive and motivated partnerships. 

The need to reach audiences where they are, with the fullness of their diverse experiences, will not only build a brand function grounded in adaptability and creativity—but also build memorable tech in fast-changing times. 

It has been nearly 12 months since our last letter. In many ways the world has changed, and in many ways it has stayed the same. 

As we think about investing today, this letter will touch on macro factors at play, M13’s investment areas of interest, and how we support our portfolio companies. 

We consistently revisit our investment thesis to evaluate whether we have the right, risk-adjusted exposure to trends. In M13’s early years, we invested at the seed and Series A stages of 14 consumer tech companies that went on to achieve unicorn status including Ring, Lyft, and Scopely. Today, our focus is on infrastructure and applications enabled by B2B and B2B2C business models, with more recent investments including Prepared (assistive AI for emergency response), Form Health (a personalized medical weight loss telehealth solution), and Lightning Labs (building faster, cheaper, global layer-two bitcoin). We’re interested in the future of work, health, commerce, and money—and how emerging technologies like AI and blockchains can open up these markets.  

One observation we’ve made repeatedly is that we are investing in technologies that we believe could take a decade to get to scale (if not longer) and then grow explosively. Just look at the rise of mobile: IBM released the first touchscreen phone in 1994, Blackberry released its 5810 smartphone in 2002…then adoption exploded in the 2010s after the launch of the iPhone in 2007, reaching penetration rates upwards of 80%. 

We believe the biggest sea changes in technology occur slowly, then abruptly. We’re witnessing this in real time with trends like the AI wave that grew slowly for a decade (we’re coming up on the 10-year anniversary of Google’s DeepMind acquisition) then burst into its recent Cambrian explosion.

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(Inspired by the fantastic Michael Dempsey essay about technology cycles.)

How we got here: The macro landscape

Global and domestic politics continue to confound amidst the presidential election, while inflation has remained relatively consistent at ~3%. As of this writing, the market expects three rate cuts in 2024, followed by four more cuts through 2025, lowering the Fed funds rate from 5.33% to 3.00%–3.25%, per Morningstar and CME Fedwatch. We also believe there is a strong negative correlation between interest rates and multiples: According to a study by Evercore, this R-squared is 0.86.* 

Liquidity is king, and private investors have waited anxiously as tech IPOs have dribbled out between Klavyio and Instacart in Q3’23 and Reddit in Q1’24. But we need more to circulate money back into the system—and need companies like Stripe, Klarna, Databricks, Virta, and Chime to step forward. Multiple expansion should help.

Government antitrust regulation also has a huge impact on liquidity, as M13 Partner Karl has discussed here. Upwards of 95% of VC exits are via M&A, but we are not seeing the blockbuster deals that truly move liquidity through the ecosystem, as major acquisitions like Figma/Adobe and Plaid/Visa have been blocked. 

Against this macro backdrop, we have a mild obsession with tailwinds and hype cycles, which inform capital formation and talent migration. These factors are critical in any market, and we think this is especially true for exponential technologies like AI and crypto. (I recently discussed this at length with Brad Burnham from USV.) Paying attention to these cycles is important: Many people leave the market when things are low, so it takes courage to invest in a trough.

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We presented this hype cycle chart at Future Perfect. (Inspired by the Gartner hype cycle.)

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While generative AI may be at the peak of a hype cycle, we still believe it is a fundamental shift that will transform our lives—and that the efficiencies created by AI will be the greatest and most steady tamer of inflation. 

Crypto, unlike other technical innovations, is financialized, which presents investment opportunities but also plenty of volatility and noise. I suspect AI would have seen an equally volatile trendline over the last decade if it had a similar tokenization model. Crypto’s financial nature has also led to repeated peaks (of inflated expectations) and troughs (of disillusionment), but we believe that with each cycle these become less extreme.

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Our belief is that AI is rapidly approaching its golden age of productivity —and that crypto may circle back yet again before we unlock its true potential. The only area we believe has true product-market fit in crypto today is payments.

All of this is to say: let’s exercise patience. These innovations can take time. Sound investing means understanding where in the hype cycles a technology falls, and understanding a trough is not always the end of the line—or a reason to invest just because prices are cheap. And at any point in the hype cycle, we believe it’s vital to find and invest in the most exceptional founders. 

Past & future investments at M13

So far this year, most of our investments were in AI- or blockchain-enabled companies – and made with an eye toward thoughtful investing at reasonable valuations.

Many existing portfolio companies have successfully launched AI products in their respective verticals. Examples include Pietra’s AI-powered tool for generating design concepts and Canvas which leverages AI to write custom EMRs tailored for very specific conditions.

More generally in the last three years, nearly all of our investments have focused on enabling technologies and B2B models. But times are a changin’, and we also wonder out loud: is it time for consumer software to make a comeback? 

We believe AI and spatial computing are driving momentum for new use cases. Below, we dive deeper into some of our areas of focus today.

Theme 1: Jumping on AI’s quantum leap

We believe AI models are improving at an exponential rate, and we’re looking to how these models can be applied and deployed for step change value creation. We’re most interested in the implications and applications of AI—and the meaningful value these create.

It is our opinion that foundational models’ capital intensity make them best suited for strategics. There is also the potential issue of LLM commoditization: Will there be a difference in quality between OpenAI, Gemini, Llama 3, etc.?

With that in mind, here are three areas our AI strategy focuses on:

Really hard data problems.

We’re starting to see wider deployment of workflows built on top of LLMs to solve really hard data problems—like advanced disease detection, inventory planning, insurance underwriting, and complex resource allocation.

In healthcare, we’ve backed Carenostics, which is building AI models to detect chronic disease earlier. We’ve backed RadiantGraph, which leverages AI for better personalization for patients and is already partnering with large health plans. And to support the use of data for these applications, we’ve invested in Ensemble, which enhances model performance across prediction tasks. Focusing on the hardest data problems can create new market opportunities rather than incremental performance improvements.

Leapfrogging into the future.

M13 companies Prepared and Polimorphic are leveraging AI to leapfrog archaic public and government systems into the future. Prepared’s assistive AI technology brings new data to our legacy 911 infrastructure, and its recent integration with Apple means it will protect 150 million US iPhone users with the release of iOS 18 this fall. Meanwhile Polimorphic is leveraging AI to modernize constituent services (such as search, document retrieval, and customer service) and update the notoriously arcane local government tech stack.

Prepared allows 9-1-1 callers to share real-time data with first responders, giving them access to live video, photos, text, location data, and live subscription. Source: Prepared

AI agents in knowledge work.

We have also focused on the introduction of AI agents into enterprise workflows, with recent investments in Maven (customer support), Lantern (sales), and Zenlytic (business intelligence). Maven AGI’s platform is already answering 90%+ of customer support tickets autonomously for companies like TripAdvisor, Rho, Clickup, Hubspot, and others. We believe this is only the wedge into a much wider set of cases toward the creation of “Business AGI” (artificial general intelligence), where Maven’s platform can be used across an organization to drive strategic decision making and improve customer experience.

Like Maven, Lantern and Zenlytic bring data closer to the front lines, so salespeople and product leaders can partner with agents to make better decisions more quickly. M13 Partner Anna Barber spoke with three of our founders about the deployment of AI agents at our spring Future Perfect conference.

Theme 2: Crypto is no longer just for payments 

We believe crypto, a decade into its own cycle, has found product-market fit in payments: more than half of Fortune 500 companies are working on on-chain projects, and stablecoins process more than 2x Visa’s monthly transactions. Today, 4% of Turkey GDP is transacted in crypto (in the form of stablecoins) and almost 10% of all remittances in Venezuela are via stablecoins. The first stablecoin BitUSD was issued a decade ago so this rate of progress is remarkable. It is also our belief that the history of the Bitcoin halving (where the reward for miners securing the network is cut in half) and improved regulatory and rate environments should lead to a promising year end and 2025. 

This year also saw one of the most successful ETF launches ever with Bitcoin ($17B of net inflows after the launch this January) and leading fintechs like Stripe announce crypto payment integrations including for Solana, where we have long been bullish.  

But where is crypto going next?

M13 company Hivemapper is seeking to build a better Google Maps, uniquely enabled through crypto. Hivemapper's solution refreshes maps with a decentralized network that incentivizes contributors with its native honey token. The company has remarkably reached 25% global coverage in just two years.

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Source: Hivemapper

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Ted Livingston at M13 portfolio company Code, a Solana-based payments and messaging company, has been thinking about true consumer use cases in crypto since founding Kik (the predecessor to WeChat) in 2009. The Code experience is pure magic—check out how it works—and is empowering creators all over the world to get paid for what they create online (instantly and with no fees). If Code fulfills its mission, it could usher in a new business model that gives creators more opportunity and consumers more choice.

We are hitting the 10-year mark in crypto. Enough infrastructure already—it is time for applications, UX, and design.

Theme 3: Consumer is primed for its next big thing

We haven’t really seen anything interesting and new in consumer in over a decade, since the mobile platform shift that spawned Uber, Airbnb, and TikTok. Smartphones and apps had become ubiquitous and powerful enough to give rise to these consumer unicorns. 

Today, we find ourselves looking at another innovation wave. Just like mobile did for the Uber era, recent technological breakthroughs—all 10 years in the making—are setting the stage for the next era of generation of great consumer technology companies.

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What will be borne out of today’s emergent technology shifts? Here are a few areas we think are interesting.

Leveraging LLMs for consumer use cases: We believe LLMs can drive true curation and personalized experiences like we’ve never seen before. They’ll disrupt search and matchmaking—but will the real sea change be digital companions or AI cloning? Personalized interactions with AI could have a wide range of implications, from disrupting higher education to improving disease detection. Business model innovation could also be significant—and could lead to the end of the subscription model as consumers become conditioned to pay for very specific tasks (and perhaps on much cheaper crypto rails!).  And as fewer clicks go to ads, what will happen to advertising? How will publishers and content providers supplement their incomes? What will become of SEO? 

The remarkable rise of ChatGPT to $1.3B+ in ARR and 180M MAU since launching in November 2022 proves the power of LLMs and the myriad of use cases they enable. We believe the era of true personalization has finally arrived. The largest companies with the most significant network effects have historically sat at the application layer, and we believe this will continue.

Vision Pro and human-computer interfaces: We shouldn’t underestimate Apple’s ability to create markets, attract developers, and build new ecosystems. The Vision Pro experience is magical—but what is the killer use case? Entertainment consumption, gaming, and education are all candidates. 

Crypto and abundance: “NFTs” have become a dirty word, but as a technology they are still fundamentally interesting. It is important to move on from the PFP (profile picture token) association to a model focused more on abundance vs. scarcity. In our opinion, scarcity models drive trading; abundance models drive more innate behaviors in areas like gaming and social. We think Solana in particular allows for an abundance-based model, and we are looking for interesting edge cases.

Given this golden era of emerging technologies, it is our view that the next $100B+ consumer technology business will get to scale across one of these computing platforms—and we are on the hunt. Whatever the next big consumer software innovation, it probably won’t come in the form of your standard mobile app. In the words of Clay Christensen (as popularized by Chris Dixon), “The next great innovation will start out looking like a toy.” 

The road ahead

At M13, our investment focus is on identifying and riding technology waves with the best founders, always cognizant of where we are in a hype cycle. 

We continue to refine and improve our investment framework with an eye on markets, business models, and competition. Most of all, we invest in founders building the next-generation of leading software companies: their motivations, history, and the ability to both execute and communicate a powerful story. We’re proud to offer them the capital and support to execute their vision.

As we circle back to the macro, we believe monetization of our portfolio will be critical. We hope the FTC and DoJ release their stranglehold on M&A—recall that upwards of 95% of VC exits are via M&A, not IPO, and M&A is critical for recycling talent and capital back into the ecosystem—but we’re also not holding our breath.   

Liquidity is king, and we strive to deliver it to our investors and be creative in this pursuit. Through our board positions and Propulsion model, we look to actively manage our portfolio as it matures and seek liquidity in a way that delivers best risk-adjusted returns. This requires a clear understanding of operating performance and markets, especially over long time horizons.

Yes, there is uncertainty at the macro level, compounded by the presidential election cycle. But in our opinion, there is no debate that we are in the exponential age of technology, which always drives us forward with unfettered optimism. 

Do you agree with this letter? Disagree? Have something to add?

I’d love to talk.

Latif Peracha, Partner
latif@m13.co

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*Study was performed by Evercore for M13 Fund II portfolio company Rho and was not distributed publicly. 

The climate tech market continues to develop, and commercialization is becoming more real. Renewables are set to surpass coal-powered electricity production for the first time this year, as they become cost competitive with traditional generation methods.

As investors, we recognize that we are at a tipping point in this market. Climate tech innovation is meeting wider demand and driving adoption at scale. Considering commercial advancements—along with growing support from regulators, consumers, and the business community—now is a great time to focus on the climate tech market.

The term “climate tech” encompasses everything from sustainable food and new materials to renewable energy and climate data analytics. While we see promise in several subsets of climate tech, we are most excited to invest in the circular economy, decarbonization, and energy. 

Below, we dig into our interest in that third category, specifically, the shift towards a more decentralized electrical grid.

Investment focus area: Transitioning to a distributed electrical grid 

Electricity is already the largest supplier of useful energy, and demand for it is only rising, projected to increase 27% by 2050. At the same time, the current American grid is becoming more unstable. Climate change, weather issues, and poor maintenance have contributed to a 5X increase in outages in 2021 vs. 2000. The grid will face further strain as the AI boom persists.

Today, the way that electricity is produced, distributed, and consumed is changing. Non-fossil fuel energy sources are increasing, and we’re seeing a shift towards power generation from non-utility sources. 

As a result, we are increasingly moving away from electricity production at centralized power plants owned by large utility companies (e.g., ConEd, Exelon, PG&E) and towards a more mixed generation base of utility players and non-utility players (e.g., independent power producers, end consumers with at-home generation). This transition is already under way: Independent power producers generated nearly half of US electricity in 2022.

This shift towards a more distributed grid largely supports the generation of renewable energy—but there are a host of challenges and opportunities to consider.

‍Our investment focus is on early-stage software and tech-enabled companies contributing to this fundamental shift in our grid infrastructure. We have several areas of interest, ranging from how we better optimize the grid to how we electrify our buildings. 

• Resiliency software: Solutions that help existing large-scale grid players (e.g., utilities, transmission, and distribution companies) identify risks in their operations, with a goal of mitigating future outages.
• Interconnection: The interconnection queue refers to the backlog of new (primarily renewable) energy projects that are unable to connect to the grid and begin producing electricity. Often, the problem isn’t the supply of available energy; it’s connecting it to the grid and making it usable. Software-enabled platforms are alleviating these issues.
• Power purchase agreements software and marketplaces: As electricity volatility amplifies, businesses—led by big tech companies with large electricity expenditures—are increasingly procuring power in bulk through power purchase agreements (PPAs). This allows businesses to lock in longer-term visibility into energy costs and can help them hit net zero goals.
• Building electrification: Consumers and businesses continue to electrify, generate their own power (e.g., solar panels), and support their own energy storage (e.g., home battery systems) for energy backup and to manage energy intermittency.
• Virtual power plants & next-gen utilities: As consumers and businesses electrify and install more distributed energy resources, virtual power plants can become major players in their local markets, providing energy supply back to the grid.

Get in touch

We are continuing to dig into the future of the electrical grid and other areas of climate tech generally. If you are working in the space, drop us a note. We’d love to chat!

Anna Barber, Partner
anna@m13.co

Mark Grace, Investor
mark@m13.co

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{{expertise}}

Anna Barber spent the first months of her life living in the Chelsea Hotel across the hall from Janis Joplin—possibly an early sign of the bold, fearless path she would take. From contemplating a life as a backcountry guide to founding a book publishing startup, Anna’s eclectic interests laid the groundwork for her eclectic career. 

Anna’s initial foray into the corporate world as a lawyer and McKinsey consultant provided a solid foundation in understanding the inner workings of large companies. Transitioning to Hollywood, she spent six years as a talent manager, refining her storytelling prowess—a skill that she now leverages to help founders articulate their visions compellingly. And as a former founder herself, Anna has navigated entrepreneurship firsthand, so she understands the resilience and creativity required to succeed in the startup world.

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As a venture investor, Anna champions a philosophy that combines deep support with high expectations, believing that this duality drives the best outcomes. She also sees beyond the frothy valuations and bubble talk, understanding that even in that environment generational companies will emerge. In an industry often dominated by short-term gains, her long-term vision and holistic approach to venture capital stand out.

We sat down with Anna to learn more about her career journey, what kind of founders she wants to work with, and what innovations she’s interested in right now.

Anna's recent publications 

• AI Fundamentals: What AI Really Does and Where We’re Looking to Invest
• M13's Guide to Building Your Early-Stage Fundraising Deck
• AI Guardrails: How Enterprises Can Safely Adapt to the Generative AI Wave
• The Rise of AI Agents

Q&A with venture investor Anna Barber

Many believe AI is at peak hype right now. Does a founder have to have AI in their pitch deck to get your attention? 

AI is all about efficiency gains—it makes things faster, cheaper, and better. It’s not a trend, it’s a paradigm shift that is improving efficiency. So if you’re a founder that is not using AI. I want to know why.

What are people getting wrong about AI right now?

There's a notion right now of we're in an AI bubble, and then the conclusion that some people draw is nothing that's getting funded today is going to work out. I think that's the wrong frame. 

People see that we're undergoing a massive platform shift—similar to what happened in 1999, similar to what happened in 2008 with cloud computing—and so people are excited to invest behind that thesis. As a result, valuations have maybe gotten a bit frothy, and people are getting ahead of their skis in terms of backing things that might not have an actual market.

“The fact is there will be generational companies that are getting funded now, even though there will also be a lot of companies that don't succeed.”

I think both can be true. While we're in a bubble and undergoing a major, exciting platform shift, it's also a great time to be investing. When you look backwards at 1999, you see evidence of that in companies that not only survived that period, but thrived, and become some of the largest companies in the world (like Google and Amazon, and infrastructure companies like Cisco). 

What is exciting to you about AI right now?  

I’d say there are three big areas I’m really interested in:

I’m also interested in companies building AI agents. I believe that yesterday, AI was all about data structures, algorithms, and machine learning. Today, the focus is on generative AI. And the AI of tomorrow is the world of agents.

What is not interesting to you about AI right now? 

As an early-stage investor, it’s challenging to invest in large foundational models. This is where big tech companies are focused on investing.

{{appearances}}

As an investor, what makes a founder stand out to you? 

There are a few types of founders that stand out to me. 

• Founders with a lot of courage, who aren’t afraid of contrarian thinking 
• Founders who see venture capital as a tool, not the end goal
• Founders with deep perspective on the market they’re building in because of prior experience—it’s probably not a coincidence that I tend to be drawn to older founders
• Founders with a deep conviction about their purpose and the business they’re trying to build

You were a founder and worked at a startup that went bust in the 2000 dot com boom. How has that shaped the way you make decisions as a venture capitalist?

I learned from the early 2000s dot com boom, that in every hype cycle, there will still be generational companies made. Apple, Amazon and Google were considered startups that many called “hype” back in 2001. I look at startups today as the future Googles and Apples. Regardless of the hype, a handful of startups today will be the biggest companies in the world in 2035.

‍You’ve also been a lawyer, a consultant, a talent manager, and more—how have these other career paths shaped you as an investor?

Starting my career as a corporate lawyer and a McKinsey strategy consultant gave me a real foundation of understanding how large companies work. That experience was valuable to me as I transitioned into the startup world, because I didn't harbor any illusions that things were somehow easier if you were a large company.  

I also spent six years as a talent manager working with writers and directors, which really helped me hone my storytelling skills. The time I spent in Hollywood has really informed both my ability to craft a great story and my appreciation for storytelling as a leadership skill. I believe founders are only as good as the story they tell. What attracts capital? What attracts people to work for you? Stories. 

Finally, I founded a company called Scribble Press: I raised money, ran that company for a while, and sold it. So I went through that entire trajectory of inventing something completely new, bringing it to the world, pivoting it, trying to sort out how to make the unit economics work, trying to iterate quickly in a physical retail environment where quick iterations are really, really hard. That experience taught me a lot of humility and insight into how tough it is to be a CEO and how lonely it can be.

What’s a daily habit of yours? 

Every morning I write down five things I’m grateful for and text them to a friend. It’s my gratitude practice. And I say “practice” because it doesn’t always come naturally—but I’ve found that when I do it, it puts me in a more positive mindset and helps me be more creative throughout the day. 

To close out, let’s do a quick lightning round: 

First job?

Photographer’s assistant. Once during a cosmetics catalog shoot, it was my job to make the perfect swirl in the cold cream. Today that job doesn’t really exist anymore; you can create the swirl with AI. 

Favorite app?

The New York Times games app.

Guilty pleasure? 

Elin Hilderbrand novels—they always feel like the beginning of summer to me. 

Book, movie, or music rec?

Right now I’m reading This Is How You Lose the Time War. It’s fantastic. 

Hidden talent? 

I used to be a pretty serious triathlete, and I can change over from the swim to the bike in record time. The secret is laying out your outfit in exactly the right way, for maximum efficiency. 

If you weren’t working in tech or venture, what would you be doing?

I think my alter ego lives in the Adirondacks and teaches kids to rock climb. 

✨ Highlights from this RocketGuide✨

• The brand flywheel — An overview of how all the pieces of a scalable brand comms function fit together, even at the early stages. This includes your website, social channels, visual brand, earned media, and more. 
• Fundraise announcement example — An example of a traditional fundraise announcement, what information is in there, and why. This is useful for crafting both a press release or a blog post announcement.
• Fundraise announcement timeline — Announcing a milestone takes time and prep work. Use our activities timeline to get the most out of an announcement—and learn why you should start earlier than you think. 
• [Template] Fundraise announcement timeline — Download our timeline to start planning now.

According to a recent study, the number two leading reason startups fail is poor marketing strategies and execution. In today's competitive landscape, brand marketing is more important than ever.

Brand communications touches every aspect of your business. Brand at the early stage includes PR (or "earned media"), social media, thought leadership, and events, and strong branding improves investor decks, product marketing, and internal comms. Done right, with a commitment to iterating quickly, the function keeps your startup top of mind, impacting customer purchase decisions, talent hires, fundraising, and more.

Whatever your experience, our comprehensive RocketGuide to Early-Stage PR will help you announce your near-term company news and, more meaningfully, activate your brand comms flywheel to achieve business goals going forward.

For more seasoned brand managers, today you may have fewer resources and more audiences to reach in a fragmented media landscape. You may also not be getting feedback that translates into traditional metrics. Our RocketGuide may spark coordination for greater consistency across your available channels, make your assets work harder for your brand, and help you iterate faster to improve engagement. The way we consume content is ever-charging—so let’s go!

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Christine Choi, M13 Partner, Head of Brand Communications
M13 founders work with partners like Christine to build trust and a resilient foundation early on for enduring businesses to scale. Prior to joining M13, Christine worked with Sir Richard Branson and Virgin's North American airlines, hotels, fintech, and commercial space companies to go to market and establish their brand reputation. She was also on the founding teams of Teach For America and KIPP public charter schools.

The brand flywheel

Even at the early stage, you’re already building the daily habits of a scalable, effective brand comms function. And you’re probably already getting feedback that shows that content matters. 

In a media landscape where news and social media are weighed equally, publishing your own content is essential. According to Edelman’s 2024 Trust Barometer, B2B buyers prefer “digital discovery” over a sales call, with 75% of respondents saying a specific piece of thought leadership content led them to research a product or service they were not previously considering.

Learn where your content can be amplified by checking out the brand flywheel.

Who is this for? Defining your audience 

Brand comms involves a range of activities, but its overall purpose is to connect your audiences with a memorable narrative about your company.

‍Narrative + engagement = brand reputation, built over time.

Understanding your priority audience(s) helps you build relevant content and an execution strategy to reach them. Audiences to engage at the early stages are: 

Customers: Understanding what matters to them helps shape helpful educational content that demonstrates your expertise, boosts sales, and builds trust.

Talent: Brand communications can attract and retain talent. Top talent is drawn to exciting, well-funded startups, and momentum—fueled by content, press, and awards—builds excitement around your brand. Encourage your team to share your story with their own networks and acknowledge them when celebrating milestones. 

Investors and partners: Effective brand communication helps raise capital. Research from Hard Numbers shows companies with the highest media coverage see a 35,635% increase in funds raised from their first event to Series B. Yes, investors are people too, and they’re checking out your social.

Media and opinion-makers: Unlike ads, earned media can’t be bought. An article from a trusted outlet that mentions your company can boost both awareness and credibility. Build relationships with reporters by following their work and engaging genuinely. Don’t just pitch—nurture reciprocal media relationships.

Crafting “sticky” messaging from the get go

Your investor decks, sales decks, job descriptions, and social posts are starting to tell the story of your company. To reach a wider audience, it’s time to dig deep and craft a compelling narrative, which starts by objectively answering the question: Why should I care? 

Consider additional questions to uncover compelling stories that can be authentically told by you in person or on a call (without slides!).

Company messaging: Spend time with your leadership team to create your company messaging. Unique stories matter, so pick concrete anecdotes that help you stand out. 

• Why does your startup exist? 
• What is most compelling about what you do? 
• What is a memorable compliment from a customer?
• What’s an ideal headline (8 words or less) for a news story about your company? 
• What will a journalist find most interesting about your company right now? 
• How has your product or service disrupted an industry norm? 
• What unexpected insight have you/your company discovered that will impact the future?‍

Founder messaging: Your audience and reporters want to know your reasons for being an entrepreneur and what it took to get your business off the ground. 

• What is your personal stake in the problem you are trying to solve? 
• What is your founder origin story?
• What or who inspires you? 
• What unexpected quality about you makes you the right person to innovate in your specific area? 

Mistakes are made to learn from. As you practice sharing your story out loud and activating the flywheel, your narrative will get even more precise—and stickier.

Early-stage PR: announcing your first fundraise  

Let’s now prepare for your first news announcement, which for early-stage tech founders is often your first fundraise. 

Explore two Rocket Guides templates to help you get going. First, our interactive fundraise announcement timeline—and the accompanying template you can download—will help you identify what to start doing ahead of your announcement.

Our example fundraise announcement identifies the basics you should cover for either a traditional press release or a more personal blog. 

Three basics every startup should do 

Even if you’re not quite ready to draft your first announcement, here are three things you can do to activate your brand flywheel:

Keep your social channels active. When reporters and investors look you up, they will look to social for signs of life, traction, and to see who’s on your side. Build a trust-based relationship with your community with a consistent cadence of insights, partnerships, educational tips and news. Save time by reposting content across multiple channels. (And if you absolutely don’t want to get active on social, don’t set up “zombie” channels with no followers that make it look like you have nothing to say.) 

Win hearts and minds, starting with those already on your side. Activate your network of stakeholders so they get emotionally invested in your team’s progress. Get them excited to receive interesting content from you to post on their own social channels (they’re influencers too). 

Relationships matter—and not only when you need something. Stay informed and get to know reporters and experts who cover your industry. Nurture these relationships, learn what matters to them and what they’re writing about (and what’s overlooked), and see what events they’re planning where your insights can be useful. Be brighter together.

The road ahead

Our RocketGuide may make you reconsider engaging earned media: It’s a lot of work. You may also start thinking about how to resource for brand comms. At the early stage, you may have people on your team already doing adjacent work. Other options are to hire an agency or consultant on a project basis or ask your investors for help. If you're an M13 portfolio company, reach out to us—that’s what we’re here for. 

Whether it’s now or later, you will need to scale brand comms as your company and responsibilities grow. A brand comms executive who has a seat at your table from the beginning will help you anticipate public perception risk early, before it’s too late to identify and address structural problems. 

Whereve you're at, knowing how brand comms works is a great first step and will establish realistic expectations.

Ready to learn more? Check out our full RocketGuide to Early-Stage PR. 

We’re going back to the moon—but this time we’re doing it with commercial industry, in a way that would blow the minds of the people at NASA 20 years ago.

——AC Charania, NASA Chief Technologist

You have to meet any market where it’s at. Sometimes having 10x better technology alone isn’t enough.

——Michael Chime, Prepared Co-founder & CEO

I fundamentally believe that the Empire AI project will spur the kind of broader economic and tech growth in New York that we saw centered around Stanford and Silicon Valley for 20 years.

——Julie Samuels, Tech:NYC President & CEO

At our Future Perfect conference this year, we brought together three innovators with a unique and important skill set: getting private and public companies to work together. 

As co-founder and CEO of Prepared, a company building the next generation of public safety, Michael Chime knows the importance of meeting government infrastructure, systems, and budgets where they’re at. As President and CEO of nonprofit organization Tech:NYC, Julie Samuels understands how different entities can work together to support New York City and State. And as Chief Technologist of NASA, AC Charania is ushering in a new era of collaboration between the private tech industry and the nation’s storied space agency—including literal moonshots. 

Here’s what our panelists shared about their experience navigating the overlapping worlds of public and private stakeholders. 

Meeting public entities where they’re at 

Michael Chime’s interest in public safety came early, when an active shooter event in a neighboring town became a catalyst for his interest in helping make schools safer. Years later, he and his co-founders built Prepared, an AI-powered assistive 911 tech company. Today, 30% of the American population is protected by Prepared’s tools for operators that reduce call process times, translate caller audio from 140 languages, transcribe calls in real-time, and equip first responders with live video that helps save lives. 

Building a solution for a public entity like the National 911 Program brings unique challenges for a tech startup. “For your regular SaaS company, if you can provide 10x better technology, you have a good chance of success. That’s the bar: 10x better tech,” says Michael. “When we were building Prepared, we walked into 911 dispatch centers and realized they had technology that was from the 80s. So it wasn’t only a matter of better technology being available; it was a matter of financial constraint, government procurement processes, and switching costs.” 

Drawing inspiration from companies like Slack and Yammer, known for championing a bottom-up business model, the Prepared team decided to offer their solution to dispatch centers for free or a low initial cost. Only after the center was up to speed on Prepared did they start to have procurement conversations. 

“You have to meet any market where it’s at,” says Michael. 

Julie agrees: “For a long time, we saw startups and tech companies come in and be like, I can fix this, it’s so easy to fix tech in government. But it’s actually not the technology that’s hard to fix, it’s all those other things Michael talks about. Meeting government where it is, especially at the local level, is key.” 

Empire AI: A case study for successful private-public projects 

Julie Samuels’ organization Tech:NYC sits at the intersection of the tech sector and civic space in New York City. As the landscape shifts and technology becomes the largest sector in New York, Tech:NYC works to make sure the tech industry is supporting the city, and vice versa.

One recent noteworthy win is the Empire AI project, a $400M public and private consortium to promote responsible research and AI opportunities focused on public good. With a new expert-designed supercomputer being built in Buffalo, universities will have access to the level of compute needed to compete with the private sector and do cutting-edge research across computer science, climate tech, astrophysics, and more. 

The massive project was made possible only through collaboration between public, private, and philanthropic entities, and is a shining example of what can happen when these entities work together. “We got this through the state budget process in a matter of months,” says Julie. “This kind of thing just does not happen that quickly, so it has been amazing.”

These collaborations can yield transformative results. Julie shares, “I fundamentally believe that the Empire AI project will spur the kind of broader economic and tech growth that we saw centered around Stanford and Silicon Valley for 20 years—becoming a new center of gravity for the best faculty, post-docs, students, employers, and startups.” 

NASA's new era of partnerships

AC Charania spent much of his career in private space and aviation companies like Virgin Galactic, Blue Origin, and Reliable Robotics, describing his job as “taking ideas from the back of a napkin and turning them into reality.” Today, he is NASA’s Chief Technologist and oversees meaningful partnerships between the private sector and America’s premiere space organization. According to AC, “My job is to take 20+ years of public-private partnership and technology development at private companies and translate that to working for the government.”

One major project at hand? Returning humans to the moon. The Artemis Program will include an expedition around the moon and later a week-long stay on its surface, and it will bring the first Canadian, woman, and person of color to this kind of lunar exploration. 

“We’re going back to the moon,” says AC, “but this time we’re doing it with commercial industry, in a way that would have been incredible for those thinking about a lunar return 20 years ago. The way we’re going about it contractually, and the architectures and collaborations we’re doing with commercial industry, are incredible.” 

NASA works with private entities through licensable technologies, contracts, and collaborations, as well as by publishing its list of technology gap priorities it is searching for other organizations to close. For example, there is solar arrays technology that was built by a startup and is widely used by NASA now: “It started with a small business idea that we incubated, and now we’re using it all over the solar system," says AC.

He concludes, "The wave of commercial industry collaborations with the government is probably an unstoppable force in the 21st century, because of the talent and capital that industry can bring to the table." Simply put, "Industry can innovate more rapidly." 

The team doesn't need you to be the best player in the league. They need you to be the best person in that role, for that team.

——Shane Battier, 2x NBA Champion

I love to talk about the power of compounding improvement. Every January 2nd, I always say: If we get 1% better every day, by the end of the year, we've gotten 37x better.

——Carter Reum, M13 Partner & Co-founder

Shane Battier is regarded as one of the most successful—if unusual—basketball players in history, known for his data-driven approach to basketball and teamwork. Michael Lewis famously dubbed him “The No-Stats All Star,” a nod to the fact that Shane’s strengths aren’t captured by traditional basketball metrics, but by the fact that his presence on a team made them significantly more successful overall. 

In other words, Shane's presence on a team helps the whole be greater than the sum of its parts—or as we say at M13, to shine brighter together.

According to Lewis, “The game tempts the people who play it to do things that are not in the interest of the group…. Morey has come to think of [Shane] as an exception: the most abnormally unselfish basketball player he has ever seen. Or rather, the player who seems one step ahead of the analysts, helping the team in all sorts of subtle, hard-to-measure ways that appear to violate his own personal interests.”

Shane joined M13 Partner & Co-founder Carter Reum at our annual Future Perfect conference to talk about leadership, teamwork, and his unique approach to winning. Here are some of the top lessons—for business and for life—from their conversation.

1. Embrace unseen, ‘unsexy’ contributions

Winning teams win as a team—not as individuals. It’s important to acknowledge that some of the most important work may not be immediately visible or celebrated.

“Kobe Bryant is the toughest competitor I’ve ever had to guard against. But even the great Kobe Bryant had strengths and weaknesses,” says Shane. “I knew when Kobe Bryant went to his right hand, he had a 62% shot of scoring. (That’s legendary, by the way—that’s what makes him one of the greatest players of all time.) But if I sent him to his left hand, and I kept him from the basket, it was only a 42% shot. You don’t have to be a math major from MIT to know that if I’m guarding Kobe, I’d rather him have the 42% chance of success than the 62%. If I can get him to do the 'bad thing' every single time, I’m creating positive expected value for me.” 

Armed with this data, Shane memorized every spot on the basketball court where he could get that edge. “And so even though I wasn’t sexy, I couldn’t jump, I was slow, I didn’t score—I still knew how to create value on every single space on the floor,” he concludes. “That’s why when I was on the floor, my teams magically played better.” 

2. Obsess over process

In both sports and business, you simply can’t control outcomes—they depend on too many factors outside of your control. What you do have control over is your own contribution.

“I became obsessed with process,” says Shane. “I cannot control the result. I cannot control whether the ball goes in or not. But I could affect where Kobe took his shorts from. I became detached from the actual result, because that’s something I can’t control—so I can’t worry about it.” 

This mindset helped him reframe success for himself and his team, and to focus in on the things he could influence instead of the things he couldn’t. “Carmelo did kick my butt,” Shane laughs, recounting guarding 10x NBA All-Star Carmelo Anthony. “But the process was pure, so I didn’t worry about it.” 

“I always talk about that with founders,” Carter agrees. “Respect the process. And if you just do the right things enough times over a long enough period of time, the results should follow.” 

3. Trust and mission focus are the most important factors for success

“As much as I love data, it still comes down to people,” says Shane. “In my work, running analytics in Miami for five years, we produce a lot of research—but maybe the most seminal piece of research that we produced was about the power of teams. There's two factors that determine your team's trajectory and success: trust and mission focus.”

Championship sports teams are made up of teams that have high trust in each other and a strong, united focus on the team’s ultimate mission. Similarly, 

“It’s the same for investing as it is for basketball,” says Shane. “It’s what makes us human.” 

4. Learn from worthy competitors

To encourage your own growth, seek out and respect worthy opponents who challenge you to grow and improve. Identifying and learning from people at the top of their game forces you to elevate your own strategy. 

“Kobe and I have played this meta game-within-the-game-within-the-game, the only he and I knew we were playing,” says Shane. “And he knew that I knew that he knew that I knew. As a competitor, I hope all of you find a worthy foil and a worthy competitor that you play a meta game with that only you know.” 

Your cheerleaders will boost you up, but sometimes it’s your competitors who build you up the best. 

5. Evaluating founders 

In closing, one attendee asked Shane about his experience talking to founders. His response came back to the main theme of the day—that winning teams requires more than just successful individuals. The whole must be greater than the sum of its parts. 

“I love talking to founders,” says Shane. “There are a lot of founders that have amazing ideas, have the passion, have the drive. But if they can’t get the right people to go along with them on their journey, they’re not getting my money. At the same time, I’ve invested in people whose idea might be subpar, who might not be very charismatic—but they are amazing at building a team that can execute, around that framework of trust and mission focus.” 

Being a founder is an incredibly stressful role, and at M13 we recognize the need to focus on mental wellness for all of our founders. “It is undeniably true that a healthier founder leads to a healthier company,” says Matt Hoffman, M13 Partner & Head of Talent. 

A key feature of M13 is that we are made up of former founders and operators who have been there before. “Investors should acknowledge and support the mental health challenges faced by founders,” says Matt. “As investors and board members, we need to own our part in creating stressful conditions for founders—and take responsibility for providing safe mechanisms to discuss and treat mental health issues."

Community is vital to mental wellness—which is why we held an event to connect our founders not only with our experts, but each other.

During mental wellness month, we hosted a conversation about mental wellness featuring Matt, Bonobos founder and venture investor Andy Dunn, Bouqs co-founder and M13 Partner John Tabis, and executive coach Golbie Kamarei. Here are some of the highlights.

1. Remember: You are not your company

“What do founders call their companies? Their baby,” Andy points out. “It serves companies well because we do everything to make it work. But the founder suffers.”

JT agrees: “The self-fulfilling prophecy of your belief can be your downfall: If something doesn’t work out, it’s all on you.” Belief in one’s unique capabilities can lead to severe personal repercussions when those expectations are not met. JT suggests that founders treat their role not as their identity, but as a job for which they were hired—which can provide a healthier perspective and reduce stress. 

Golbie’s clients regularly work to disentangle their identities from their work roles. One way they do this is by acknowledging the roles we each play at work and catching when we’re using language that equates one’s “beingness” with the role they play in an organizational system. 

For example, just adding the phrase “in my role” when describing a job can help create separation between the human and their job. Golbie highlights that we each play a collection of roles, and by disentangling ourselves from them, we can better manage stress.

“People conflate who they are with what they do, especially in this country, where we don’t have social safety nets.” says Golbie. “You are working for your healthcare, basic security, and livelihood, so we treat companies and our jobs like life and death.” Viewing life as a collection of roles rather than being wholly defined by one's work can help manage stress and maintain mental health.

2. Find the right language 

“You can’t address and harness and control that which we don’t discuss,” says Andy, who has written extensively about his mental health journey as a founder. He emphasizes the importance of accepting mental health diagnoses and using language that doesn't equate individuals with their conditions. 

"Use language that separates the person from the condition. Imagine if my doctor said, ‘You have cancer,’ and, ‘Oh also, you are cancer.’ Now notice and hear the difference between saying ‘Andy has bipolar disorder' and 'Andy is bipolar.'” 

JT has undergone his own journey of recognizing and accepting mental health challenges, which manifested as anger and frustration during times of stress, rather than what he viewed as a more “typical” feeling of sadness. He says, “I had no idea that mental health disorders could take such different forms until I spent time with a mental health expert and got the help I needed.” 

3. A culture of “high performance” can be a self-imposed trap

It’s common for high achievers to sacrifice their well-being for success—and startup culture can glorify the sacrifices founders make for their goals, normalizing suffering in pursuit of success. It’s no secret that this attitude can be a detriment to overall well-being.

“It’s quite common with founders I work with to not realize the trade-offs they’re making while in pursuit of a goal,” says Golbie. “High performers are used to working under duress. Making sacrifices and pushing through physical and mental boundaries is common.” 

What helps us be happy and well varies by person—and for founders, it can also vary by company stage. JT saw the impact of changing dynamics of leadership as the Bouqs team grew beyond his preferred leadership sweet spot of managing a small, collaborative team. “I was happy with 20 people and miserable with 110,” he says. “I ran into personal fears and imposter syndrome as the company got bigger.” Today, he highlights the need for self-awareness to understand where mental health challengers are coming from—and what help is needed to navigate transitions. 

“Survivor bias is real. We often only tell the success stories of founders who have defied the odds,” says Matt. Obscuring common struggles and failures can exacerbate our own high—and unhelpful—expectations. Andy additionally notes, “We should not lionize entrepreneurs as much as we do.” 

4. Build a portfolio of mental health support

“The founder experience is extremely stressful and unique,” says Golbie. “Some founders have found the experience traumatizing. If you’re struggling with aspects of your role, you’re not alone.” 

Goldbie encourages building a portfolio of support which may include coaching, therapy, or both. She differentiates between coaching and therapy: Coaching is often more future-oriented and goal-focused, while therapy is often more past-oriented and focused on deep, foundational healing related to core beliefs, habitual patterns, and trauma.

“Invest in your self-awareness and self-management, and seek professional help early, ideally before a crisis occurs,” she adds. “It may be hard to know if coaching or therapy is right for you. Both coaches and therapists offer complimentary consultation sessions. Meet with several to see if any individual’s offerings and style meets your needs. Trust your intuition."

Listening and talking with other founders willing to speak candidly about their mental health journeys can also be a good start to building strong support systems. Andy notes the importance of real listening and empathy: “Listening makes a world of difference for someone to unburden themselves. Don’t shift the spotlight. They may be making a small bid that took an ocean of pain to bring this to your attention—so don’t make it about you.” 

JT’s advice? "Give yourself some distance from day-to-day stresses and prioritize self-compassion. Recognize that maintaining your mental and physical health is crucial for long-term success.”

"As investors, we at M13 acknowledge the mental health challenges founders face and seek to support their well-being,” says Matt. “We need investors to encourage founders to seek professional support when they need it."

Recommended reading

Want to hear more from our experts? Learn more at the links below. 

Watch

• Andy’s TED talk: Lessons from Losing My Mind.
• Golbie’s TED talk: Success at What Cost? 

Read

• Andy Dunn’s memoir, Burn Rate: Launching a Startup and Losing My Mind
• JT shares his thoughts about navigating isolation and stress as a founder
• Article: ​Trauma May Explain The Suffering of CEOs, Leaders, & Startup Founders (Arzhang Kamarei)
• Quick read: The Station (Robert Hasting)

M13 connects our founders with career coaches. If you’d like to get in touch with Matt about coaching offerings at M13, please email him at matt@m13.co. 

M13 RocketGuides are interactive masterclasses in building your startup, from crafting an investor-impressing pitch deck, to strategic conference selection, to writing clear and actionable investor updates.

Written by our expert operators, investors, and former founders, these guides include in-depth insights and best practices to help your company shine. Dive into our guides below.

M13's Guide to Early-Stage PR ‍

Brand communications touches every aspect of your business. Brand at the early stage includes PR (or "earned media"), social media, thought leadership, and events, and strong branding improves investor decks, product marketing, and internal comms. Done right, with a commitment to iterating quickly, the function keeps your startup top of mind, impacting customer purchase decisions, talent hires, fundraising, and more.

Whatever your experience, our comprehensive RocketGuide to Early-Stage PR will help you announce your near-term company news and, more meaningfully, activate your brand comms flywheel to achieve business goals going forward.

Highlights:

• The brand flywheel — An overview of how all the pieces of a scalable brand comms function fit together, even at the early stages. This includes your website, social channels, visual brand, earned media, and more.
• Fundraise announcement example — An example of a traditional fundraise announcement, what information is in there, and why. This is useful for crafting both a press release or a blog post announcement.
• Fundraise announcement timeline — Announcing a milestone takes time and prep work. Use our activities timeline to get the most out of an announcement—and learn why you should start earlier than you think.

Our AI workflow automation tool experts:

Christine Choi, Partner & Head of Brand Comms; Mary Lara, Director of Product; Emma Miller, Content Manager; Abigail Snodgrass, Creative Director

M13's Guide to AI Workflow Automations in 2024‍

There are seemingly endless AI tools out there to help you do your job more efficiently, and you might not have time to test them all. So we did it for you.

Welcome to your new go-to resource for the latest in AI workflow automation. Dive into our curated selection of the top AI tools, carefully selected to meet the needs of startup founders—from AI meeting assistants to content generators to customer prospecting and more.

Highlights:

• AI code co-pilots: Assisting engineers in writing code has been an key early use case for generative AI. Various tools are attacking the problem from different angles, with the goal of enhancing the output of very expensive engineering resources. When done right, implementing these tools can multiply the impact of teams large and small.
• AI image editors & modifiers: Kate Middleton unfortunately made headlines for using AI to retouch and edit images of her and her family—but these tools can greatly reduce the time and money needed to make edits. The real power of these platforms is that now, even relatively unartistic people can make changes to existing photos and visual content directly. It's usually no more complicated than drawing the area a user wants edited and writing a quick prompt. Some of these workflows are finding their way into mainstream tools as well, showing promise for the space.
• AI for resume sorting & filtering: Job postings can attract hundreds of applicants, and manually sorting through them can take hours if not days. Now, emerging solutions can cut that time down to minutes. Particularly in high-growth situations where you are hiring dozens of positions with a small or non-existent HR team, these tools can help you avoid needing to put other founder duties on hold while hiring, hugely saving time and money.

Our AI workflow automation tool experts:

Mary Lara, Director of Product; Zach Naglieri, Data Operator; Carter Reum, M13 Co-founder & Partner; Rob Smith, M13 Partner & Head of Product

M13’s Guide to Investor Updates

Investor update emails are a crucial part of effective communication to help you leverage your investor network. They’re your opportunity to share your progress, celebrate your wins, and ask for help where you need it. 

In this interactive guide, we cover everything from deciding what metrics to include to finding the sweet spot between under-sharing and oversharing—so you can transform your updates into irresistible must-reads.

Highlights:

• "Investor updates can be just as important for potential investors as they are for current investors. If we meet a founder in between fundraising, we will often ask to be included on their investor distribution list. It’s a great way to stay top of mind for potential investors and give them some sizzle to get excited about." —Brent
• "Be transparent about challenges your startup is facing and the steps you're taking to overcome them. Acknowledging risks shows that you're realistic and proactive." —Rob
• "End with an action. Consider adding a CTA at the end (i.e. schedule a meeting, review a document, etc.) so it’s clear what action investors should take next." —Mary

Our investor letter guide experts:

Mary Lara, Director of Product; Brent Murri, M13 Partner; Rob Smith, M13 Partner & Head of Product

M13's Guide to Strategic Conferencing in 2024

Conferences present a huge opportunity for networking, fundraising, showcasing your product, gleaning insider insights, and much more. They can also be chaotic, overwhelming, and expensive.

If you’ve wondered: Should I be going to conferences? Which ones? How do I find them? How do I make the most of my time there? Then our RocketGuide to Strategic Conferencing—featuring M13’s Conference Finder Tool—is for you!

Highlights:

• “Pitching investors? Consider creating a data room specifically for the conference, with links to your deck, product demos, and testimonials. Prospective investors you meet can share the link with anyone on their team and you can set up unique link tracking to understand views and engagement." —Amelia
• “Be a good (and strategic) host. Identify great partners and sponsors to add to the network you can bring together, and keep close track of the overarching event schedule—both the conference and offshoot events—to choose an optimal time for your own event." —Melissa
• “Introvert? You’re not alone! Up to 40% of the population needs some solo time to energize. Figure out the 1–3 things that will re-energize you while you’re in the thick of it. AM meditation? 30-minute workout? Favorite B-vitamin supplement from home? Plan these in advance so you know your cup will be filled." —Lizzie

Our conference guide experts:

Lizzie Francis, M13 Partner & Head of Propulsion; Mary Lara, Director of Product; Samantha Hughes, Community Program Coordinator; Melissa Montan, Director of Propulsion; Rob Smith, M13 Partner & Head of Product; Amelia Zack, Portfolio Operations Analyst

M13's Guide to Building Your Early-Stage Fundraising Deck

Raising a seed or Series A round? Our comprehensive guide walks you through every. single. slide. your potential investors will want to read, from introducing an interesting problem you’re solving, to a strong product roadmap, to defining key metrics for your startup’s success.

Or check out the full deck below:

Highlights:

• “Investors can be lazy. If they only read the titles of your slides, that should be enough to tell your startup story.” —Rob
• “Twist the knife on your problem slide. Start with a problem, then highlight what makes it even worse. Use action words; be declarative.” —Anna
• “Financial projections should be optimistic but realistic. Make sure you understand what “good” looks like, and highlight that on your financial forecast slide.” —Karl

Our fundraising deck experts:

Karl Alomar, M13 Partner; Anna Barber, M13 Partner; Rob Smith, M13 Partner & Head of Product

Stay connected

Sign up for exclusive early access to future M13 RocketGuides

Artificial intelligence is on everyone’s mind. 

And with good reason. We are currently in an AI technology innovation wave similar to the dawn of the consumer internet, the advent of mobile technology, and the rise of cloud computing. New businesses are emerging to provide AI models, developer tools to build them, and infrastructure to host them. Existing products and services will be enhanced by AI capabilities, while entirely new offerings will upset incumbents with AI as a key competitive advantage. 

At the same time, we also recognize that we are at the peak of a hype cycle—a moment that inflates valuations and calls for caution when it comes to investing in this market. 

At M13, we value clear-eyed evaluation of the emerging technologies reshaping the future of work, money, health and commerce. Below, dive into some of the key subjects we talk about when we talk about AI. 

Get in touch with our investors 

‍

Anna Barber, Partner
Interested in vertical AI, SMB workflow, commerce, AI guardrails.
anna@m13.co

Latif Peracha, Partner
Interested in AI for healthcare, vertical AI, AI infrastructure.
latif@m13.co

Morgan Blumberg, Principal
Interested in embedded AI, AI guardrails, productivity tools, AI infrastructure.
morgan@m13.co

Perspectives  

The Rise of AI Agents
_{By M13 Team}

What's the future of artificial intelligence? AI agents that can autonomously carry out complex tasks.

AI, Crypto, and Riding Hype Cycle Waves with Brad and Latif
_{By M13 Team}

Union Square Ventures co-founder Brad Burnham in conversation with M13 Partner Latif Peracha about lessons learned from decades of venture investing.

M13's RocketGuide to AI Workflow Automataions in 2024
_{By Mary Lara, Zach Naglieri, Carter Reum, Rob Smith}

There are seemingly endless AI tools out there to help you do your job more efficiently, and you might not have time to test them all. So we did it for you.

AI Fundamentals: What AI Really Does and Where We’re Looking to Invest
_{By Anna Barber, Morgan Blumberg}

A venture investor’s point of view on the AI wave.

AI Guardrails: How Enterprises Can Safely Adapt to the Generative AI Wave
_{By Anna Barber, Morgan Blumberg}

As AI adoption has exploded, companies are under more pressure than ever to figure out how to use this technology safely. We dig into key considerations and what questions companies need to be asking to prepare.

AI and the Future of Work
_{By Anna Barber, Morgan Blumberg, Matt Hoffman}

How we see jobs evolving in the era of AI—and the questions companies need to be asking to prepare for this sea change.

2023 Mid-Year Letter to Investors
_{By Latif Peracha}

Here are the tectonic shifts we’re paying attention to in the tech market—and how our investing philosophy fits in.

Our 2024 Predictions
_{By M13 Team}

From the maturing AI market to the workforce’s new normal, M13 partners share their top predictions for 2024.

AI Is Coming for Our Work. That’s a Good Thing.
_{By M13 Team}

Adobe’s Scott Belsky digs into what the proliferation of AI tools means for human workers.

‍

Recent investments 

Below are select investments from our AI portfolio. These are not inclusive of M13’s total investments; for more information, check out our portfolio.

Investing in Maven AGI: Leveraging AI to Fix Customer Support
_{By Anna Barber, Morgan Blumberg}

M13 leads the $20M Series A for Maven AGI, a pioneer in artificial general intelligence (AGI) for business, starting with customer support.

Investing in Norm Ai: The First Regulatory AI Agent Platform
_{By Morgan Blumberg, Anna Barber, Latif Peracha}

Norm Ai agents are empowering compliance teams with autonomous context-aware compliance checks across increasingly complex regulation.

Investing in Polimorphic: Easing the Burden on Local Government Workers
_{By Latif Peracha}

M13 leads the seed round to a GovGPT solution to better connect local governments with the constituents they serve.

Investing in Carenostics: Empowering Clinicians with AI
_{By Morgan Blumberg, Latif Peracha}

M13 leads the $5M seed round for Carenostics, which deploys life-saving AI to diagnose and treat chronic diseases.

Investing in Canvas Medical: Reimagining the EMR for the Future of Healthcare
_{By Morgan Blumberg, Latif Peracha}

Canvas enables startups and established healthcare providers alike to launch new patient experiences and business models faster.

Investing in Pietra: The One-Stop Shop Helping E-Commerce Brands Grow
_{By Morgan Blumberg, Brent Murri, Carter Reum}

Pietra offers the critical infrastructure to start and scale modern e-commerce businesses.

Investing in Rebuy: Supercharging E-Commerce
_{By Jack Gorab, Brent Murri}

M13 is leading the $17M Series A for Rebuy, a data-driven personalization platform helping e-commerce brands maximize cart values.

The crypto market is different from previous hype cycles. It is both a technology and a financial system.

——Brad Burnham, Union Square Ventures Co-founder

It’s pretty clear that incumbents have massive advantages in data and distribution in AI. But in crypto, they have zero advantages. They’ve tried, but they can’t actually figure it out.

——Latif Peracha, M13 Partner

M13 partner Latif Peracha brought his friend and colleague, Union Square Ventures (USV) co-founder Brad Burnham, to M13’s Future Perfect 2024. Brad shared his insights on the challenges and transformative potential of crypto and AI, as well as on investing in these rapidly evolving technologies.

USV successfully raised its first fund in 2003 by focusing on the application layer of the internet, a contrarian move during the post-dot-com crash period. With this history in mind, Brad acknowledges the importance of timing and of understanding the hype cycles that technologies move through. 

Today, two major hype cycles on investors’ minds are those of AI and crypto. Below, check out some highlights of a sweeping discussion that took our audience from the Industrial Revolution, to the year the Internet broke, to Turkey’s stablecoin adoption (4.3% of its GDP), and even to sound advice from Brad’s mother.

But first, hype cycles: A history

History repeats itself. Carlota Perez, author of Technical Revolutions and Financial Capital: The Dynamics of Bubbles and Golden Ages, points out that there have been hype cycles around every innovation since the Industrial Revolution. Perez’s book reviews innovations such as steam and railways; steel, electricity, and heavy engineering; oil, automobiles and mass production; and information and telecommunications. 

The cycles that have accompanied these major technological shifts created the necessary financial bubbles to drive experimentation, infrastructure development, and ultimately sustained growth. Carlota lays out a few key phases of these cycles: 

• Capital mobilization: Bubbles help to rapidly mobilize large amounts of capital needed for infrastructure and innovation.
• Experimentation and innovation: Speculative frenzy encourages a wide range of experiments and innovations, many of which fail (the process of “creative destruction”) but some of which succeed spectacularly.
• Market creation: Bubbles create markets and industries that did not exist before, laying the groundwork for sustained growth during the synergy and maturity phases.

On hype cycle challenges  

The unusual crypto case: “We've seen, for the first time, real volatility within a hype cycle,” Brad explains about the crypto market. He compares crypto today with where the internet was in 1995, “the year the internet broke”  with the first browser, the first web application, and the first search engines. 

“[With crypto], there’s this hint that something really important is going on. A bunch of people have been working on it and thinking about it for a while. But the broader population is unaware of how important it is. You talk to people at cocktail parties and they ask, ‘What’s it good for?’ It’s the same question we used to get in 1995. The underlying architecture does make a difference, and we're about to see real applications.”

The problem with overfunding: Latif describes the difficulty in distinguishing between the financial aspects of crypto projects and the actual technological innovation and development due to their market-driven nature and resulting noise. 

Brad acknowledges the unique challenges of investing in publicly traded tokens, including that token offerings result in managing excess funds. "If you happen to do a token offering at a moment in time when there's significant momentum, you could raise a ton of money,” he says. “And it turns out to be really hard to run a company with too much money. You end up over-investing, building big organizations that become unwieldy and you're not actually delivering as fast as you used to.”

In other words: If you've raised so much money that you never have to go back to your investors, the drive to deliver can be diminished. Investing rounds can be a useful framing checkpoint where the decision to reinvest demands disciplined dialogue among investors.

Now for the bright side: Opportunities

‍An environment of innovation: Technologies need the chance to mature and become useful. Similar to information technology on the internet, crypto and AI are experiencing similar rapid innovation. 

"Without that financial bubble, without that enthusiasm, you don't get the experiments that you need in order to put the infrastructure in place to build real systems,” Brad says. "[At USV] we made the argument that we were through the initial crash of the information technology hype cycle, and that we were going to be building now into what Carlota Perez called the deployment period. That’s when a lot of the technologies that were first introduced in the crash actually became important." 

Adaptation: "It's our job to figure out how to live with these new problems. It's not the job of the technology or the market to make it easy for us,” says Brad.  

Implications: Both investors encouraged looking at the implications of a technology, not just the technology itself. Thinking beyond the infrastructure or core technical pieces brings a huge number of opportunities.

Advice to live and invest by

In closing, Latif asked for advice for investors and founders. Brad offered these two parting insights. 

First, “Doing the right thing is a lot harder than doing things right. Doing things right is available to everybody: just keep plugging away. Keep paying attention to your customers, and you can build a business. Doing the right thing is sometimes a matter of luck."

The other piece of advice comes from Brad's mother: "If you marry for money, you pay for it for the rest of your life. Why is that relevant in a venture capital context? Well, if you take the highest offer for your company, if you recruit people using money instead of your mission, you’ll end up paying for it in lots of subtle ways.” 

Get in touch

If you are building in crypto and AI and want to talk, please reach out to our investing team: Latif Peracha at latif@m13.co and Mark Grace at mark@m13.co.

Customer support is notoriously hard to deliver well and at a reasonable cost. At our 2024 Future Perfect conference, Maven co-founder and CTO Sami Shalabi noted that the average support ticket today costs companies $40 in English—and $120+ in other languages. 

Innovations in customer support over the past few decades have centered on ticketing systems and offshore call centers, with the focus squarely on delivering the same support at a lower cost per ticket. 

But we believe artificial intelligence is changing all that, allowing companies to deliver world-class customer support at a fraction of the cost—with AI in the loop both to replace and to empower human agents. Not only does AI have the potential to drive down CS costs dramatically, but AI-native CS platforms can also generate revenue by capturing customer input that comes through the CS channel, providing valuable insights to product and marketing teams.  

Venture dollars have poured into AI-native customer support disruptors, as incumbents like ServiceNow and Zendesk invest in their own homegrown AI solutions. Now, all eyes are on AI for enterprise, and we believe customers have a strong appetite to try new products. 

In this environment, a new product that can resolve 90 percent of customer inquiries out of the gate can grow quickly.

‍

David Doyle, Head of Strategic Support Programs at ClickUp, a current Maven customer, reports that Maven increased rep solves by 25% in week one, freeing up the team to invest in more proactive retention activities. 

Ultimately, the Maven team has its eye on the larger “business AGI” opportunity. The Maven system ingests any customer data in any form and allows customers to build agents on top of that data—so these agents can help with not just customer support, but also product research, sales, and customer onboarding. At every point, Maven has designed its architecture for both performance and ease of use, such that customers are coming up with new ideas about how to use Maven, on their own.

In a recent case study on Maven, OpenAI noted, "Maven AGI aims to unlock the human potential trapped in input/output tasks. Customer interactions extend beyond support, and combining the technology of Maven and OpenAI will improve the coordination of customer-facing functions like support, sales, and marketing."

“Maven AGI is transforming how we engage, interact with, and support our customers. It autonomously handles 90% of incoming queries, significantly exceeding our initial expectations.”
—Rahul Todkar, Tripadvisor Head of Data and AI

As investors, seeing such a well-executed product so early in its life cycle seriously impressed us. And when two portfolio companies we introduced to Maven promptly became customers, it confirmed that we wanted to invest! The potential of Maven is clear even in a first sales call.

In a competitive and fast-moving space, having the right team is everything, and rarely does a team come along that impresses us as much as the MavenAGI founding team. The combination of Jonathan Corbin, Sami Shalabi, and Eugene Mann is another key reason we were excited to back Maven. Each brings deep leadership experience over decades at companies like Adobe, Marketo, Stripe, Google, and Hubspot, and they’ve previously worked together and known one another for years. This team understands the opportunity in front of them, and they understand how to build a world-class team and company. 

“​​Creating a better customer experience has been an obsession, and it’s why I’ve spent time at so many industry-leading companies in the CX space,” says Maven CEO Jonathan Corbin. “Organizations spend billions of dollars on people and technology to create personalized experiences, but siloed data structures, lack of training, and disparity in tools across functions meant that we could never achieve success. That’s why I left Hubspot—to build the customer experience of the future.”  

We’re proud to have partnered with Maven AGI on this journey, leading their $20M Series A and investing alongside our peers at Lux Capital and E14 Ventures.

Key takeaways

Yesterday's AI was about data structures, algorithms, and machine learning. Today, the focus is on generative AI. And the AI of tomorrow is the world of agents.

——Anna Barber, M13 Partner

We need to get to a world where you can say to an AI agent ‘I’m hungry’ instead of ‘order me a pizza.’

——Sami Shalabi, Maven AGI Co-founder and CTO

An agent needs to have a component of action and execution power and a feedback loop. The action is different across every context, but the common elements are reasoning plus action and some amount of learning.

——Nami Baral, Niural Co-founder and CEO

Acceptance of AI agents is about trust, and it’s about stakes. But if you have a way to build a lot of trust, you can handle higher-stakes processes.

——John Nay, Norm Ai Founder and CEO

What is an AI agent? 

While generative AI has dominated conversations in the past year, the real change to come is autonomous AI agents that not only generate information but orchestrate action. At our recent Future Perfect conference, M13 partner Anna Barber and three M13 founders—Norm Ai’s John Nay, Niural’s Nami Baral, and Maven AGI’s Sami Shalabi—discussed AI agents and the impacts on their respective industries.

Compliance: Norm Ai, which built the first regulatory AI agent platform to help companies stay in compliance, thinks of AI agents across three levels.

• Level one is a system that can autonomously assess if a document or action is out of compliance, flag it, and then pass a full legal review to a human. 
• Level two agents take that assessment, then autonomously suggest what actions to take to become compliant. (This is where Norm Ai is at today.) 
• Level three, the future state, will be systems that don’t need to hand documents off to humans at all in order to implement changes needed to become compliant.

Human resources management: Today, an AI agent may be able to respond to a request like, “Help me hire this person in the Netherlands.” The agent can create an employment contract, figure out whether this person needs a visa and the requirements to get that visa implemented, get all of the documents in order, make sure that all of the payment methods are aligned, handle taxes, and so on. “That kind of AI agent has a limited scope, where it’s trained on certain kinds of high-precision actions,” says Niural co-founder and CEO Nami Baral.

Tomorrow, an AI agent could respond to a request like, “Here’s our headcount plan, now execute that.” “Then whether you hire in the Netherlands, China, or Kentucky doesn’t really matter,” says Nami. “That’s the level of autonomy that agents should be able to take. Obviously, there are different layers of autonomous action that can happen with HR because HR is so sensitive—but this could create a whole other level of efficiency for the company.”

Customer service (and pizza): Maven AGI co-founder and CTO Sami Shalabi explained his take on agents as he innovates in customer service. 

“It's about ultimately giving AI outcomes,” says Sami. “For a non-business use case: Today you can tell an agent, ‘order me a pizza,’ and a pizza arrives. But at the next level, you tell an agent, ‘I’m hungry,’ and it knows from your overall history that you like pizza, and so it orders you one. We’re looking to create that in the business setting. So if you’re a marketing tech company, you can say, ‘I want 100 leads.’ There's a lot of potential value in that, because it's fundamentally 100x-ing human productivity.”

In short, the AI agent technology of tomorrow is about being able to take actions and putting those together in a way where humans aren't in the loop.

What are the benefits? And how does it impact us humans? 

John highlights how AI agents can transform regulatory compliance from a burdensome task to a more efficient process. By fully automating compliance tasks that are neglected due to complexity and time-consuming manual compliance, AI agents can help organizations become more compliant than ever before, ensuring higher adherence to regulations.

Sami describes customer onboarding that brings human experience into deciding where to use AI agents in a way that results in ROI:

“It’s a journey to get there on the human side—s opposed to a capability. We typically start with the human in the loop, and when we present that as part of all of our experience, people are able to see the value. Then this unlocks the next phase, and the next phase. When it's not performing, we tell you why. We're hitting about 93% efficiency where our AI agents are able to answer questions without human intervention.”

Where is the line?  

As Anna points out, the future of AI agents won’t only be about technical innovation but also a willingness to accept agents that are truly autonomous on an emotional level. “On a societal and cultural level, where are we ready—or not ready—to accept true agents?” she asks. “For example, right now we are more accepting of human error when it comes to driving than of self-driving cars making errors. But people are getting comfortable faster than I thought.” 

High precision and rigorous testing are essential for AI agents, especially in sensitive areas like payroll and compliance. Nami points out that Niural does not deploy AI agents until they achieve over 90% accuracy, and for financial transactions, Niural requires 99% accuracy. This high standard ensures that the AI agents can be trusted to handle critical tasks without errors, which is crucial for gaining client confidence and ensuring compliance with various regulations.

“Acceptance of AI agents is about trust, and it’s about stakes,” says John. “I don’t necessarily think stakes are the blocker. If you have a way to build a lot of trust, you can handle higher-stakes processes.”

Get in touch

If you are building in AI and want to talk, please reach out to our investing team: Anna Barber at anna@m13.co and Morgan Blumberg at morgan@m13.co.

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As a venture investor, I find myself thinking a lot lately about the shifting M&A regulatory landscape and its impact on the innovation my industry seeks to support. Last year, worldwide M&A volume fell 17% YoY, reaching a 10-year low. The abandoned $20B Adobe-Figma deal is just one of the latest tech mergers to be squashed by regulators in the name of preserving innovation. 

While multiple macroeconomic factors are contributing here, it’s worth paying attention to how regulation has impacted this space.

Notably, as AI has exploded, calls for regulation have also reached a new fever pitch, with FTC Chair Lina Khan recently noting, “There’s no AI exemption from the laws on the books.” 

I agree that, to preserve competitive markets, some transactions shouldn’t happen. However, I also believe this should be the exception, rather than the rule. And lately, it seems to be the rule.

Generally, the story is, large mergers reduce the consumer benefits that result from a competitive environment, necessitating regulatory bodies to intervene and block them. But does that argument hold up to scrutiny?

When people in my world—venture investors and the founders they support—hear this argument, we heave a collective sigh. The fact is, M&A deals are a crucial part of supporting innovation and the investment ecosystem needed to foster it. Squashing M&A transactions doesn’t protect innovation; it restricts it. 

That’s why I get concerned when I see a lower proportion of investigated M&A deals being approved. In 2022, more than half of antitrust investigations led to a complaint or abandoned transaction. By 2023, that ticked up to 92%.

Innovation is at the center of the entire venture capital industry—and venture is uniquely positioned to support it. That in mind, there are a few misconceptions about the relationship between M&A and innovation that I would like to debunk. 

Myth #1: Innovation is fed by competition, which is protected by M&A regulation.  

Counterpoint: Innovation is fed by investment—and investment is driven partially by returns from M&A. 

Creative innovation is hugely driven by the venture investments that support disruptive founders. But while VC firms like M13 are inspired by innovation, it’s important to remember that we are also accountable to our investors. Ultimately, we need to make sound financial decisions. 

VCs generally create returns for their investors via two key routes:  

1. IPO: A portfolio company goes public.
2. M&A: A portfolio company gets acquired.

(It is also possible for private companies to become cash flow positive and share dividends to shareholders—but it’s uncommon, and for our purposes, a fairly negligible source of returns.)

While IPOs generally create better returns, M&A is by far the likelier outcome. In 2022, M&A transactions outpaced IPOs by more than 30x.

While M&A deals generally drive smaller returns, the difference isn’t that vast. One survey found that IPO returns to VC firms averaged 9.7x, vs. M&A returns of 7.4x. M&A transactions also generated returns more quickly, averaging a median 4.7 years between first VC funding and exit, vs. 6 years for companies that IPO. 

When regulation takes M&A off the table as an avenue to create returns, VC becomes a less compelling investment category. In turn, Limited Partners (investors in venture funds) become less likely to invest. The end result is that less capital goes to innovators that are feeding the market with new technologies and businesses.

Myth #2: Large mergers discourage founders from innovating in a space. 

Counterpoint: M&A not only encourages founders by offering a “finish line” to work toward, but also brings them back to innovating again more regularly. 

Venture firms aren’t the only players interested in financial returns from startups; founders and their teams are too. Because it’s difficult for more entrenched firms to truly innovate, more nimble startups are able to monetize on new ideas. As the far more common exit path than going public, M&A creates an invaluable incentive for founders to work toward.

Moreover, founders that successfully exit through M&A often get back the time and freedom to innovate again. For example, after Spencer Rascoff’s Hotwire was acquired by Expedia in 2003, he went on to become co-founder and CEO of Zillow (2011 IPO), in addition to founding myriad other companies (dot.LA, Pacaso, Recon Food, heyLibby, and more). Today, Rascoff continues to feed the innovation ecosystem as an educator, PledgeLA Board member, and General Partner at the VC firm 75 & Sunny. 

I believe an ideal outcome of our industry is to allow the world’s greatest innovators to cycle back regularly and innovate a number of times over their careers. M&A deals are one way to release great founders back into the ecosystem so they can build over and over.

“Undue and disproportionate regulatory hurdles discourage entrepreneurs, who should be able to see acquisition as one path to success, and that hurts both consumers and competition—the very things that regulators say they're trying to protect.”
—David Zapolsky, Amazon SVP and General Counsel

Myth #3: Large mergers block consumers’ access to innovative technologies. 

Counterpoint: Acquisitions give consumers more access to innovation. 

FTC Chair Lina Khan and others often argue that large companies should be innovating on their own, rather than acquiring innovation solutions through M&A deals. I couldn’t disagree more. 

Large companies—especially public ones—are terrible at organic innovation. They are limited by short-term performance expectations and restrictive existing technical infrastructure. Moreover, no matter how good a technology is, when it goes to market, over time the uniqueness and the ubiquity of that technology diminishes. This creates an opportunity for smaller, more nimble companies to compete. 

In fact, there are many companies that have flourished and provided value to the consumer only because they were acquired by a larger firm that has the ability to continue to fund their operation—such as Facebook’s acquisition of Oculus, or Microsoft’s purchase of LinkedIn. In both cases, tech giants acquired companies that were adjacent to their core business, rather than directly competitive with it. Facebook bet on VR, while Microsoft expanded into business social media.

Because it was acquired by Facebook, Oculus was able to launch its VR product and bring this new technology to millions. Even companies with an existing user base can attain new reach through M&A; Instagram was acquired with fewer than 90 million users, but today boasts more than 2.2 billion.

In short, acquisitions give these smaller companies the resources and reach to offer their innovative solutions to more consumers.

Looking ahead to a better system

I believe the stated goal of regulation is sound: prevent monopolies, enhance competition, and push for new innovation in the market. However, the practices in place today are losing sight of this goal. A few key issues: 

• ‍High fees. Antitrust investigations can be costly for the companies being investigated, and increasing scrutiny of M&A transactions can deter companies considering sizable acquisitions. 
• Retroactive reversals. Transactions can be overturned even after the deal is finalized—sometimes long after. One extreme case is Axon's $13M acquisition of VieVu in May 2018: the FTC challenged the deal in 2020, sparking a multi-year litigation process.
• ‍Lengthy timelines. It can take months or even years to complete M&A investigations, leaving companies stuck in long holding patterns. Amazon's acquisition of iRobot was abandoned in January 2024 after eighteen months of litigation went unresolved.

Together, these factors discourage companies from entertaining acquisitions and hinder healthy M&A activity in the industry. Many companies are becoming apprehensive about M&A. And many deals that could bring new tech to the market aren’t even being considered, or are being rejected for the wrong reasons. 

Knowing the shortcomings of the current system, I think a better system would isolate regulatory assessments to a question of monopolies. Most major acquiring firms should not be able to merge with their major competitors. However, the acquisition of adjacent offerings or smaller extensions to existing products should be allowed, as this drives more distribution, further innovation, and more disruption over time. 

Let’s really focus on driving innovation in our world. Let’s give high-risk early investors a chance to establish strong returns and cycle their money back into more innovation. Let’s let the best founders find homes for their companies, so they can move on to build the next major disruptor. Finally, let’s allow the consumer to benefit from allowing disruptive offerings to improve the services and value they receive every day in the market.

After a banner year for new AI applications, companies, and ideas, it’s almost impossible not to talk about artificial intelligence in this moment. While specific news stories come and go, there are a few fundamentals that won’t be changing in the near term.

At M13, we believe AI represents a true paradigm shift. As with the dawn of the internet, the rise of mobile, and the rise of cloud computing, this technology will usher in a fundamental change in the way software products are built and how we do our work. While to the average consumer AI may feel like an uncertain landscape, in ten years, it will just be another part of how we live our lives.

At our most recent annual general meeting, M13 shared our point of view on the AI wave: what it does, why it's having such a moment right now, and where we aim to invest.

What does AI actually do?

To anticipate how AI will change products and services we currently use, it’s useful to review AI’s core functions.

First, it predicts, looking forwards. AI is very good at parsing complex datasets to figure out what is most likely to happen next. The implications here span underwriting, investment management, inventory management, pricing, hiring models, and more.

Second, it infers, looking backwards. AI can assess complex data to answer questions about why something happened. We can apply this to areas from business intelligence (why did a customer make a certain purchase?) to medical diagnosis (why did a patient exhibit certain symptoms?).

Third, it generates. Especially in this era of widespread generative AI use, AI can create art, text, and video, with tremendous potential impact on marketing, sales, education, training, new product design, and more.

When you put these three functions together, you get automation. This function looks like AI agents that work alongside humans on things like customer services and sales, outreach, coding, personal CRM, and other exciting applications.

Why now?

AI is not a new technology, but 2023 did mark a new inflection point. There are a few reasons for this.

One is that foundational models have become usable out of the box for lay users. Open-source models trained on a large volume of information can accept real language queries, and we’ve seen the release of APIs built on top of these models that developers can use to more easily build new applications.

Technology advancements have also accelerated, making it cheaper to train models—according to Ark Invest, the cost of training a new model is declining each year by 70%. Training a new model is now within reach for your average company, or even your average independent developer.

Continued strong investment has also driven the AI wave. During a difficult time for fundraising, AI has remained a bright spot in the venture world. As a result, there’s been a steady stream of new AI product launches, keeping AI at the forefront of our attention. One year out from the launch of chatGPT, 6 in 10 US adults report being familiar with the technology.

News cycles have also played a role. Scott Belsky, who spoke at our 2023 Future Perfect conference, pointed out that if you’ve used an Adobe product in the last 15 years, you’ve already used artificial intelligence—you might just not have been thinking about it. Today, we see stories of AI plastered all over our newsfeeds, making it top of mind for consumers and CEOs alike and further driving trials for AI products.

Finally, large enterprises are taking notice and prioritizing AI in their strategic planning. Earnings call mentions of “generative AI” alone jumped 75X from Q4’22 to Q3’23 as executive interest in the area skyrocketed. Across Fortune 500 companies, 80% of surveyed CEOs said that they believe AI will increase efficiency and 75% said they believe it will automate manual operations in their business in the near term.

We’re seeing measurable economic impact of this technology. It takes developers 50% less time to code when they use GitHub Copilot. Knowledge worker productivity is projected to increase fourfold with the use of AI. These are real bottom line impacts. While there may be some speculation involved in how AI investing is rolling out, the excitement is driven by real impact.

Our approach to investing in AI

The AI tech stack includes infrastructure, orchestration, and application layers. We’re most interested in investing in the latter two.

Generally, we're looking for areas where AI technology offers a massive performance boost—10X improvement, not 10%. Where does it hugely surpass human performance? Where can business be built using proprietary access to data? And what new infrastructure companies will be needed to support the development of this entire ecosystem?

We believe this shift in technology positions startups at the application layer to compete with incumbents as they have the opportunity to build from the ground up on genAI. We are particularly excited about companies that can interact with end users using natural language and act as an interaction layer on top of traditional data structures. In time, we believe focused vertical solutions, especially those with access to proprietary data, will have the capabilities to fully automate workflows.

We have invested behind this thesis in the relationship management category with Hearth.ai, the document interaction category with Humata, and tax automation category with Workmade.

We believe for certain use cases developing a smaller, proprietary foundational model has advantages when coupled with an end-to-end customer solution. One such company is our portfolio company Norm Ai, building AI legal guardrails starting with regulatory compliance. Norm’s AI agent presents context-aware compliance checks that determine what marketing materials and disclosures may be problematic with which regulations. We believe that eventually Norm will be able to interact with AI agents conducting financial transactions, ensuring those agents comply with all relevant laws, policies and guidelines.

We realize the shifts in the way technology will be built will require new developer tools to support data curation, model training, fine tuning and observability. We are excited to watch this landscape evolve and support the tools that will build the software of the future.

As early-stage investors, the quality of a team is one of the most vital things we assess—and one reason we’ve been so excited to invest in AI is that this space draws some truly amazing founders. We’re seeing top minds coming out of universities teaming up with serial successful founders because they’re so excited about this technology, and former founders are getting back in the ring to see what they can build.

We’ll continue to share our perspective on particular aspects of the AI technology wave, and would love to talk to founders building at the application and orchestration layer.

When I first met Code founder and CEO Ted Livingston, in addition to his hearty laugh, the thing I was most impressed by was his ability to keep his same core team of nine together for a decade across multiple companies. It is a testament to Ted's leadership and vision as well as to the power of enduring relationships.

Ted has often been early. As a college student at Waterloo, he was part of the early days of BlackBerry (then known as Research in Motion). He went on to found Kik, the first chat app to reach over 100 million users. The messaging app had 40 million monthly active users at its peak and many consider it to be the predecessor to WeChat.

Since selling Kik in 2019, Ted and team have been working on their next act, in a space that’s been discussed for decades: micropayments.

Code is a new global payments platform that allows creators to earn money on anything they put online. The experience for both sender and receiver is seamless and instant, and Code allows people to charge as little as 5¢ per transaction. The system leverages self-custodial blockchain technology and is built on Solana.

Code makes it easy to make one-time, low-cost payments

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Existing payments apps are fragmented by use case (e.g., Venmo focuses on P2P, Stripe focuses on internet B2C, Square focuses on in-person B2C) and geography (e.g., Stripe in the US vs. Adyen in Europe). They are also subject to regulatory complexity that limits global functionality and leads to high fees.

We believe that Code has the opportunity to build a payments network that reaps the benefits of crypto—global by default, low fees, self custody, modular developer experience–while maintaining the benefits of traditional payment channels, such as privacy between parties and ease of use. We also think it has the team to execute.

For people that say crypto has not reached product-market fit, it’s worth noting that stablecoin volumes are outpacing Mastercard and Paypal, with a market cap of more than $135B. But it is true that there is not a magical product experience. We believe Code can provide that experience in payments.

Code has built its own L2 on top of Solana to ensure performance and security even when the network is most congested. This should give developers and their end users the most consistent, seamless experienceM13 has been actively investing in crypto and in the Solana ecosystem for several years, and our latest investment in Code fits squarely in our thesis.

Easy, global, instantaneous connections

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Code is live today; download it at getcode.com. The team has also released a developer platform and will soon be launching a new blogging tool to empower anyone anywhere to get paid for their writing.

On the note of enduring relationships, it is always a great sign when your previous investors sign up for your next act. In this case, we’re thrilled to partner with Fred Wilson and Union Square Ventures as well as angel investors Balaji Srinivasan, Roham Gharegozlou, Anatoly Yakovenko, Raj Gokal, Mert Mumtaz, and more.

Recent studies have found the number one reason startups fail is improper product-market fit. The second leading cause? Poor marketing strategies and execution—meaning that your brand communication strategy is a vital part of any go-to-market plan.

How you communicate with your customers, partners, and the media is crucial to establishing your brand reputation and community. For founders interested in sharing a fundraise announcement, amplifying their startup’s accomplishments, or sharing their expert opinion on a trending story, reporters are a vital part of that community.

“Phrases like ‘get us PR,’ ‘secure placement,’ or ‘place a story’ are misleading and outdated ways of thinking about the brand comms flywheel,” says M13 Partner and Head of Brand Christine Choi. “It really starts with humans and the stories that interest us. Reporters are people too—and tech media are important stakeholders to build relationships with as you build your brand.”

At our recent Ask a Reporter Anything event in New York City, Christine sat down with TechCrunch reporter Dominic-Madori Davis to talk about best practices for founders interested in building relationships with reporters.

Here are some of the takeaways from the conversation—starting with some missteps to avoid.

Don't

Pitch reporters who don’t cover what you’re pitching. Before you pitch someone, you need to know what types of stories they write. A reporter who never writes funding announcements probably isn’t going to start with yours. Notably, it’s rare for reporters to cover product announcements (vs. fundraising announcements). Help the reporters in your network by only sharing relevant, newsworthy stories.

Overlook social media. Many reporters are active on social media and find sources and stories through channels like LinkedIn and Twitter. Follow reporters who cover areas relevant to you on their social platforms and engage when you see something interesting. Communicating over these platforms can also help you avoid getting lost in someone’s busy inbox (Dominic shared that she has 71,000 unread emails). And keep your own social media channels up to date—reporters will check out your product and ideas on social as part of their research.

Cross boundaries trying to get ahold of a reporter. Communication is positive; badgering is not. Don’t spam journalists with messages or reach out through inappropriate channels. “I had a founder contact my family,” says Dominic. “That’s really scary. Reporters get harassed a lot too, especially women journalists—someone will send hundreds of messages across multiple platforms. Don’t do that.”

Request headline changes or edits after publication. If you do have a reporter write a story about you, be generous about the final piece. Generally, reporters don’t write headlines; editors do—and arguing over a published headline is a waste of time. It’s also rare to update a published story unless there’s been a flagrant error, so best practice is not to bombard reporters with edit requests for a published story. “When we issue a correction, it has to be updated on news wires all over the world. Something has to be absolutely incorrect. If a story isn’t incorrect and you just don’t like it, that’s not enough to tell Apple News about.”

Do

Remember that reporters are real people. If you haven’t worked with the press before, the stereotypes around the media can be daunting—and it’s important to remember that reporters are also just regular people doing their jobs. “We treat the media as a relationship, because reporters are real humans,” says Christine. “We chose to host this event partially so founders could have the experience of meeting a real reporter who they will likely have to pitch.”

TechCrunch Reporter Dominic-Madori Davis shares her experience at M13's 'Ask a Reporter Anything' event.

Norm Ai COO Patrick Vergara with M13 Partner & Head of Brand Christine Choi at the event in NYC.

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‍Build social relationships. You don’t need to have a fundraise to announce or story to share in order to engage with reporters; you can start these relationships just by reading their work. “A lot of the founders that I’ve taken note of weren’t pitching me—they were just people engaging naturally with my work. And when you do that over and over again, you put yourself on the radar, so when you do have a story, I want to know what it is.”

‍Offer to be a source. Even if a reporter passes on a pitch or can’t cover your company specifically, they’ll still often use you as a source. Offering to weigh in as an industry expert can give you a different type of coverage, while also helping out the reporter as they write their story.

‍Stay informed. “I like to follow what’s happening in Congress and seeing how that relates to startup founders,” says Dominic. “When Roe v. Wade was overturned, I wondered: what does that mean for women founders in certain states? Those are the stories I find interesting.” Staying on top of developing news stories and trending conversations can help you shape your own story to be timely and relevant.‍

Grow together. Just as your company will grow and develop over the years, reporters’ careers grow across outlets and coverage areas. It’s important to remember that these are ideally long-term relationships, not just one-story interactions. Dominic explains, “I’ve been covering one founder’s company for years now, at two outlets: Business Insider and now TechCrunch. I think that’s the best part about working with early-stage companies: you get to grow with them over the years.”

Today, Built In honored M13 in its 2024 Best Places To Work Awards. As a bicoastal firm, we’re proud to share that we rank in both Los Angeles and New York City.

At M13, we believe that we’re brighter together—and that our people are at the center of our success.

“Many VC firms don’t focus on culture in the way we do at M13, and so it’s fairly unique for a VC to be recognized for that,” says Matt Hoffman, M13 Partner and Head of Talent. “We credit much of our success in this area to the operating experience our partners bring to the team, where we’ve learned the value of a strong developmental mindset in driving performance.”

In turn, our strong culture propels our strategic vision. “Nobody wakes up at M13 not wanting to achieve great things,” says Carter Reum, M13 Partner and Co-founder. “We want to create a new, innovative model that is talked about for decades to come.”

We asked the team to weigh in on what makes M13 a great place to work, from their favorite parts of M13 culture to how they feel supported in life beyond the office. Here’s what they had to say.

What is the best part of working at M13?

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All voices are heard. I’ve never been afraid to speak my mind or contribute my opinions, and as a result, I’ve been able to have a greater impact through my work here and develop more as a professional than I would be able to anywhere else.

— Sarah, Talent

People at M13 are allowed—and in fact encouraged!—to experiment. We are always striving for better ways to work, collaborate, and provide value to our portfolio of startups. It’s a great place to try throwing different things at the wall to see what sticks.

— Melissa, Propulsion

The humans! Not just the quality of our team, but the diverse backgrounds and experiences that each contribute to making M13 what it is.

— Andrew, Launchpad

It's easy to feel engaged when you're working in an environment where intellectual curiosity is valued. The group collectively puts a lot of time and effort into understanding future trends.

— Mark, Investing

The people, the collaborative culture, and the collective effort to continually improve. M13 is a community of incredible people who make coming to work every day a true privilege. I am lucky to work alongside people who trust me, uplift me, challenge me, and inspire me.

— Julie, Talent

It's rare to find a combo of doing what you love with people you love doing it with. I've found that at M13, and I want to spend my career using this platform to invest in great entrepreneurs and leaders.

— Brent, Partner

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A culture of teamwork, learning, and gratitude

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M13 really fosters a culture of learning and openness. There’s no attachment to “the way we’ve always done things,” so new ideas are embraced. M13 creates space for people to do their best work and stretch themselves. I’m excited to go into the office every day and learn from all my colleagues—I get so much energy from working with a talented team that really cares about the founders we serve, about our company, and about each other.

— Anna, Partner

M13 has a culture of appreciating all the contributions of all our various team members on a daily and weekly basis. Everyone works hard and has high bars of excellence, yet the firm’s culture is one that causes people to pause and express gratitude to others along the way.

— Carter, Partner & Co-founder

Firms often tout their “smart, collegial culture,” but M13 really is a place where teamwork is the most important cultural quality. M13 truly facilitates a culture in which a rising tide lifts all boats.

— Sarah, Partner & Head of Investor Relations

The beauty of our workplace lies in its unwavering commitment to collaboration. M13's incredible talent is composed of individuals who are committed to excellence on the individual and collective scale. Every voice is not just heard but celebrated—a testament to our belief that we are #BrighterTogether.

— Jennifer, Investor Relations

M13's shared mission is not only to empower our portfolio companies, but to create a gratitude-driven culture where we are valued as individuals and motivated to do our best work. It's truly a space where I feel encouraged to innovate and take calculated risks, knowing I have unwavering support from my team. I'm incredibly thankful for the genuine human connections that define M13, making it an extraordinary workplace where we collectively thrive.

— Mary, Product

M13’s LA headquarters and NY office are designed for gatherings, connection, and inspiration as much as they are for heads-down work. The play and joy in our staff retreats nourish bonds that make remote collaboration so much better. And every day we learn from our colleagues, whether they graduated from college two or 20 years ago. That learning mindset keeps us evolving and experimenting in times of change and uncertainty. It’s always about the people, and we are very proud to nurture a culture that attracts the best.

— Christine, Partner & Head of Brand

M13’s culture of gratitude motivates me to do my best work. Whether one-on-one, in Slack, or in all-hands team meetings, gratitudes are common, and they energize everyone to give their best while enjoying the ride.

— Michael, Data

Everyone here is such a great human being with a genuine heart. This is not by accident! The strength and power of “one team, one dream” is not only felt but actively discussed and pursued. I am consistently thankful for not just my immediate team but the entire team working and supporting each other to do our best work.

— Abigail, Brand

M13 is a greenhouse for innovation and entrepreneurship. I take pride in being part of a company that not only invests in visionary companies, but actively reflects and celebrates that same entrepreneurial passion within our organization.

— Amelia, Propulsion

Community beyond M13

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Everyone here brings energy and enthusiasm to their work, and it’s exciting to see everyone leverage their experience and knowledge to support each other and our founders and their teams. Our common love for founders and the journeys they are on keeps me engaged and inspired.

— Loren, Talent

M13’s annual Brighter Together Week is a true embodiment of our commitment to fostering community both internally and externally. This week of events brings together our community members from all different backgrounds and provides unique opportunities for direct connections between the M13 team, founders, and investors.

— Carly, Brand

The sense of community here is remarkable, and getting to collaborate and work with everyone here is such a rewarding feeling.

— Arbo, Talent

Support at work and beyond

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During the pandemic, M13 came together to ensure each of us, and our families, were supported in every way. With great intention and planning, the firm’s Mission Control team created a cadence of virtual events, check-ins and programming, centered around our M13 core value of Community, to ensure we were connected, collaborative and #brightertogether. Partners, children, pets—all were welcome. This human approach to life during an unprecedented moment in time embodies the generosity of spirit and caring that is a hallmark of our firm, and it continues to this day.

— Lizzie, Partner & Head of Propulsion

I’m given the room and the support to tackle really challenging problems. I grew twice as much in my first six months at M13 than I did in two years in a previous position, because I am trusted and encouraged to learn by doing.

— Samantha, Community

My colleagues truly support my growth, curiosity, and development. In my day-to-day work, this means giving me opportunities to work on new projects, space to share and develop my ideas, and access to the tools, resources, and team expertise I need. Beyond work, M13 has offered me the flexibility, support, and cheerleading to continue my education. I feel that my growth as an employee, a student, and a person is truly valued here.

— Emma, Brand

About M13

M13 is an early-stage (seed and Series A) venture capital firm that invests in visionary founders building disruptive software businesses. Established in 2016 with offices in Los Angeles and New York, the firm is a full-stack partner that brings its deep bench of full-time operators to help founders outperform and build category-defining companies. M13’s portfolio includes more than 200 direct investments, with 25 exits to date. The firm has seeded seven companies and been in the Series A of five others that went on to achieve unicorn status.

About Built In

Built In determines the winners of Best Places to Work based on an algorithm, using company data about compensation and benefits. To reflect the benefits candidates are searching for more frequently on Built In, the program also weighs criteria like remote and flexible work opportunities, programs for DEI, and other people-first cultural offerings.