Operator Turned VC: How Eniac Ventures Acts Like A Startup Player-Coach w/ Nihal Mehta
The Journey from Serial Founder to Venture Capitalist: Insights from Nihal Mehta
Who is Nihal Mehta?
Nihal Mehta, a serial entrepreneur turned venture capitalist, is a co-founder of ENIAC Ventures. Born in Iowa, Mehta's entrepreneurial journey includes starting five startups, some of which failed while others succeeded. These experiences have given him the "scar tissue and muscle memory" that he now leverages as an investor. Along with three college friends who shared similar paths, Mehta founded ENIAC Ventures, a firm that remains focused on supporting founders through the early stages of their startups.
Why Transition from Founder to Venture Capitalist?
Why did Nihal Mehta switch from being an active founder to a VC?
Despite the common perception of VCs as "vulture capitalists," Mehta's transition was a natural progression of his career. As a seasoned operator, he evolved into a "player-coach" role, helping founders realize their potential by providing not just capital but also guidance and support. His journey into venture capital was driven by a desire to leverage his extensive experience to support the next generation of entrepreneurs.
What is ENIAC Ventures?
What should potential partners know about ENIAC Ventures?
ENIAC Ventures is a generalist seed investor firm focused on pre-product market fit startups. They work closely with founders to achieve product-market fit and prepare them for Series A funding. With over 150 investments, the firm has honed its expertise in navigating the challenging early stages of startup growth. ENIAC's approach involves deep engagement with their portfolio companies, acting as a "third co-founder" by providing support in areas like product development, distribution, recruiting, PR, business development, sales, and fundraising.
How Does ENIAC Ventures Support Founders?
How does ENIAC operationalize the support founders need?
ENIAC Ventures offers a variety of support mechanisms to its portfolio companies:
- PR and Content Strategy: ENIAC recently hired Anthony Ha, a former TechCrunch journalist, to consult on PR strategies. This includes producing videos, strategizing announcements, and introducing founders to reporters.
- Network Access: ENIAC has a network of nearly 500 senior-level contacts at major brands and tech companies. This network facilitates business development, sales, and corporate development for portfolio companies.
- Connectivity and Introductions: The firm emphasizes connectivity within its network, making numerous introductions daily to help founders find customers, partners, and other resources.
Key Insights on PR for Startups
What are some hot tips for PR according to Nihal Mehta?
- Unique Hooks for Announcements: With the high volume of funding announcements, startups need unique angles to attract media attention. For instance, sharing insights into the fundraising process or even the pitch deck can provide an interesting hook.
- Avoid Web Wire: Mehta advises against using standard PR media wires for announcements, as they often go unnoticed by reporters and can even hinder future coverage.
Working with Friends: Pros and Cons
What has Nihal Mehta learned about working with friends?
ENIAC Ventures was founded by Mehta and his college friends, a dynamic that has both advantages and challenges. To navigate this, they hired a coach to help them work better professionally, identifying each partner's superpowers and fostering mutual respect. Mehta believes it's easier to go from friends to co-founders than the other way around, as existing friendships provide a foundation of trust and openness that is crucial in a professional setting.
The Importance of Coaches for Founders
Why does ENIAC Ventures encourage the use of coaches?
ENIAC Ventures strongly advocates for the use of coaches, especially for first-time founders and executives. Coaches provide invaluable guidance, feedback, and support, helping founders navigate the challenges of leadership and growth. Mehta shares that having a coach has made a dramatic difference in the performance of one of their best companies.
Social Activism and Personal Passion
What social causes is Nihal Mehta passionate about?
Mehta is deeply committed to social activism, focusing on fighting for the underdog and addressing social injustices. He supports various causes through digital activism, fundraising, and leveraging his network. His wife, Reshma Saujani, founded Girls Who Code, and is now advocating for moms through the Marshall Plan for Moms. Together, they aim to create significant social impact by addressing systemic issues and empowering underrepresented communities.
The India Internet Group and Market Dynamics
What is the India Internet Group and how does it compare to the U.S. market?
The India Internet Group was started simultaneously with ENIAC Ventures to invest in the Indian tech ecosystem. However, the Indian market has not seen the same momentum as the U.S. market due to various factors, including regulatory challenges and cultural differences. Mehta notes that while the Indian market is scaling, there are still significant hurdles to overcome for startups to achieve the same level of success as in the U.S.
Government Regulations and Market Growth in India
How do government regulations impact the Indian startup ecosystem?
Government regulations in India, while intended to protect certain interests, often create friction for startups. Mehta points out that the regulatory environment can stifle innovation and growth, making it harder for startups to break out. Comparatively, the entrepreneurial culture in the U.S. provides a more conducive environment for startups to thrive, with less regulatory burden and more support for innovation.
Supporting Economic Empowerment
What is the 100K Pledge and how does it work?
The 100K Pledge, launched in response to the George Floyd incident, aims to hold individuals and organizations accountable for their pledges towards economic empowerment of the Black community. The initiative tracks public pledges and allows users to create their own, ensuring transparency and accountability. The goal is to maintain momentum and ensure that pledged resources are effectively used to drive positive change.
FAQs
1. What is ENIAC Ventures' investment focus?
ENIAC Ventures focuses on pre-product market fit startups, working closely with founders to achieve product-market fit and prepare for Series A funding.
2. How does ENIAC Ventures support its portfolio companies?
ENIAC provides support in areas such as PR, business development, sales, and fundraising, leveraging its extensive network and operational expertise.
3. Why does ENIAC Ventures encourage the use of coaches for founders?
Coaches provide invaluable guidance and support, helping founders navigate the challenges of leadership and growth, leading to better performance and outcomes.
4. What social causes is Nihal Mehta passionate about?
Mehta is committed to fighting for social justice and empowering underrepresented communities, supporting causes like Girls Who Code and the Marshall Plan for Moms.
5. How does the 100K Pledge work?
The 100K Pledge tracks public pledges towards the economic empowerment of the Black community, ensuring transparency and accountability for pledged resources.
For more insights and to listen to the full podcast, visit Interplay VC Blog. If you're an entrepreneur looking for support, check out Interplay's Incubator for resources and guidance.