27-Year Investor Explains What You're Missing While Chasing AI l TELUS Global Ventures, Terry Doyle

Key Concepts

• Hype Curve: The cycle of initial excitement, disillusionment, and eventual adoption of a technology.
• Horizon 1, 2, 3: McKinsey's framework for categorizing technologies based on their maturity and commercial viability.
• Quantum Security: Measures to protect systems and data from attacks by quantum computers.
• AI-driven Optimized Search: Using artificial intelligence to improve the efficiency and accuracy of search processes.
• Tuition Value: The learning and experience gained from early investments in emerging technologies.
• Problem-Solving Mentality: The ability to persistently work on and solve difficult problems.

Investment Philosophy and Experience

Terry Doyle, Managing Partner of Telus Global Ventures, shares his investment philosophy shaped by his extensive experience in technology since 1999. He emphasizes the importance of learning from past technology cycles, including the dot-com crash and the rise of mobile phones. This experience has taught him to be cautious of hype and to invest when others are not, specifically avoiding investments when "everybody's investing in the same thing."

Telus Global Ventures

Telus Global Ventures is the corporate venturing arm of Telus, a Canadian-headquartered global technology and services business. Their portfolio consists of approximately 90 companies, with 60% having a commercial deal with Telus. Last year, they conducted about $34 million of business with their portfolio companies.

The Value of Unconventional Founders

Doyle argues that age and experience are not necessarily indicators of a good founder. He notes that sometimes, founders without preformed ideas or extensive experience can bring fresh perspectives and challenge assumptions, leading to breakthroughs. He references Google's efforts to prevent employees from making assumptions as an example of how removing bias can foster innovation.

Case Study: Clinia

Doyle highlights Clinia as a successful investment. Clinia developed an AI-driven optimized search for enterprise customers, improving patient outcomes. This investment not only changed how Telus thought about its data but also how its customers ran their businesses.

Horizon Framework and Quantum Security

Doyle discusses McKinsey's "Horizon" framework (Horizon 1, 2, 3) for categorizing technologies. He explains that while Telus sometimes invests in Horizon 3 companies (those far from commercialization), it can be challenging to align these investments with the immediate needs of the business. Quantum security is presented as an example of a Horizon 3 area where Telus has invested early to gain "tuition value" and prepare for future challenges. They anticipate quantum computing will create security vulnerabilities and are investing in solutions preemptively.

Embracing Mistakes and Fostering Innovation

Doyle emphasizes the importance of creating an environment where employees are not afraid to make mistakes. He outlines a three-step approach to dealing with mistakes: acknowledge them, fix them, and avoid repeating them. This approach encourages exploration and reduces conservatism, allowing the team to take calculated risks on behalf of the company.

Investing in People

Doyle believes that the individual founder is the most critical factor in investment decisions. He looks for founders with a "problem-solving mentality" and the ability to persevere even when progress is slow. He emphasizes the importance of finding great founders who are solving significant problems and connecting them with the resources they need to succeed.

The Rewarding Aspect of Venture Capital

Doyle finds it rewarding to help founders progress on their journey, acknowledging the difficulty of being a founder and the importance of waking up every day with the desire to solve difficult problems.

Synthesis/Conclusion

Terry Doyle's investment philosophy is rooted in experience, a contrarian approach, and a focus on the individual founder. He emphasizes the importance of learning from past technology cycles, challenging assumptions, and creating an environment where mistakes are seen as learning opportunities. By investing in innovative solutions and supporting talented founders, Telus Global Ventures aims to drive technological advancements and improve the lives of its customers.