Episode 20: "Part Art, Part Process" | Elevate Ventures' Patrick Sweeney on Startup Success Predictors, Recent Evolutions in VC Hiring, and the Criticality of Founder Empathy

Today's episode explores three ideas that caught my attention:

* Immigrant founders outperform statistically - Patrick's research shows a strong correlation between immigrant status and startup success. Makes me wonder how much untapped potential exists in commonly overlooked founder demographics.

* The empathy imperative - Treating every "no" with respect is SO important because you never know where founders will be in a few years.

* Sometimes revolution starts with regulation - A single 1968 ruling unleashed institutional capital into VC, which Patrick mentioned has enabled roughly 75% of public company value today. Got me wondering what current rules limit tomorrow's breakthroughs.

I explore these ideas and more with Patrick Sweeney, Principal at Elevate Ventures.

Patrick Sweeney brings a unique blend of quantitative rigor and founder empathy to venture investing, informed by his time as a Harvard Business School researcher studying the economic impact of venture capital. Now as Principal at Elevate Ventures, he leads investments for Indiana's $225M evergreen fund while championing the transformative power of innovation. His journey from energy trading to academic research to venture capital gives him a distinctive perspective on how capital allocation can drive both financial returns and societal progress.

During our conversation, Patrick shares:

* A practical approach to balancing quantitative and qualitative factors in early-stage due diligence, particularly around customer value propositions.

* Insights on the microchip industry's strategic importance and why maintaining manufacturing capabilities is critical for economic stability.

* A framework for thinking about product-market fit through three key indicators: positive unit economics, demonstrated demand, and scalability potential.

What We Cover:

* 00:00 Introduction

* 01:02 Meet Patrick Sweeney

* 04:02 Patrick's Venture Capital Journey

* 06:16 Ellen Pao vs. Kleiner Perkins Case

* 08:55 Diversity in Venture Capital

* 10:45 The Art and Science of Investing

* 13:07 Patrick's Mission and Motivation

* 18:22 Insights from Elevate Ventures

* 32:56 Conclusion and Final Thoughts

Listen now on Spotify, Apple Podcasts, and YouTube.

Connect with Patrick

* LinkedIn: https://www.linkedin.com/in/patrick-w-sweeney/

Connect with Andrew

* Newsletter: https://thediligentobserver.substack.com

* X: https://twitter.com/AKazlow

* LinkedIn: https://www.linkedin.com/in/andrewkazlow/

* Book: https://angelops.pitchfact.com/

* Website: https://pitchfact.com/

Stuff We Reference

* Goose the Market: https://www.goosethemarket.com/

* Paul Gompers: https://www.linkedin.com/in/paul-gompers-09203197/

* Shark Tank: https://abc.com/show/535e2b07-18a9-4d94-9803-9ed8257b9d23

* Kleiner Perkins: https://www.kleinerperkins.com/

* Larry Warnock: https://www.linkedin.com/in/larrywarnock/

* Check out my full interview with Larry here:

* Venus Aerospace: https://www.venusaero.com/

* Venture Capital’s “Me Too” Moment: https://corpgov.law.harvard.edu/2021/07/13/venture-capitals-me-too-moment/

* The Economic Impact of Venture Capital: https://www.gsb.stanford.edu/faculty-research/working-papers/economic-impact-venture-capital-evidence-public-companies

* Chip War by Chris Miller: https://www.amazon.com/Chip-War-Worlds-Critical-Technology/dp/1982172002

* Brook Stroud: https://www.linkedin.com/in/brook-stroud/

* Check out my full interview with Brook here:

* TSMC: https://www.tsmc.com/english

* IEDC: https://iedc.in.gov/

* Elevate Venture Funds: https://elevateventures.com/resource-category/policies/

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All opinions expressed are personal and may not reflect the views of the individual’s organization or of The Diligent Observer. Not investment advice.

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