Canva-Backer FPV Raises $525 Million Fund

Key Concepts:

• Long-term investing
• Mission-driven founders
• Product-driven founders
• Market volatility (whiplash)
• Liquidity for LPs
• AI and machine learning in healthcare
• Venture capital time horizons

I. LP Sentiment and Market Environment

• FTD's LPs are long-term focused, not easily swayed by short-term market fluctuations like Fed interest rate hikes.
• The firm prioritizes investors who are aligned with long-term founder visions.
• The current environment, despite its challenges, presents opportunities for mission-driven founders to focus without distractions.

II. Identifying and Supporting Exceptional Founders

• FTD seeks out product-driven founders.
• Peggy's experience at Google, building products used by billions, attracts founders seeking similar success.
• FTD aims to be operators alongside founders, providing expertise from Google, Cisco, and Morgan Stanley.
• Example: Peggy helped Canva founders prioritize features early on.

III. Navigating Market Volatility and Advising Founders

• The market is expected to experience "whiplash" (ups and downs) for the next few years.
• Founders should focus on 10+ year horizons, not short-term gains.
• Market downturns reduce competition, creating opportunities for mission-driven founders.
• Advice to founders: Stay focused on a big vision and adapt to the times.

IV. LP Liquidity and Long-Term Investment Strategy

• FTD's LPs are primarily charitable endowments and foundations with investment horizons of decades (50+ years).
• The focus is on investments that will be significant in 10 years, not immediate exits.
• LPs are willing to wait for the right time to exit, maximizing value.
• Companies that survive recessions and market turmoil often become major market winners.
• Example: Google's 2004 IPO after the dot-com crash.

V. Future Investment Opportunities and Valuations

• Markets prefer stability before reopening to IPOs.
• The current "whiplash" may eventually normalize.
• Private market valuations may be impacted by public markets.
• Healthcare, particularly companies using AI and machine learning for drug discovery and clinical trials, is a key area of interest.
• Example: A company using AI to reduce clinical trial time and cost, enabling them to bring drugs to market independently.

VI. The Role of AI and Global Talent Acquisition

• AI should be used to solve big problems, not just for incremental improvements.
• AI is becoming as fundamental as cloud computing.
• FTD will seek out great founders globally, though the West Coast currently has a high concentration of talent.

VII. Notable Quotes

• "So our founders are amazing, product driven founders, right? So they see other amazing product driven founders. That's the secret." - Peggy
• "...if you're really building for the long term, you shouldn't get you have to go with the waves, but you can't really be building for the next year or the next two years." - Peggy
• "We want to return money to them, but we want to do it at the right time and we want to do it when things are great." - Peggy

VIII. Technical Terms and Concepts

• LP (Limited Partner): Investors in venture capital funds.
• Basis Points: A unit of measure used in finance, equal to 0.01%
• Blue Chip Founders: Founders with a proven track record of success.
• Idiosyncratic: Peculiar to one individual or situation.

IX. Synthesis/Conclusion

FTD is focused on long-term investments in mission-driven, product-focused founders. They are not overly concerned with short-term market volatility and are actively seeking opportunities in areas like AI-driven healthcare. Their LPs are aligned with this long-term vision, allowing them to weather market fluctuations and capitalize on future growth. The firm's experience and reputation attract exceptional founders, and they are willing to invest globally to find the best opportunities.