EP 8: VC with “Midas Touch” Shares His Success Story

Jeff Crowe | Managing Partner of Norwest Venture Partners

Editors’ note: In this episode, the host erroneously states that Jeff Crowe is a Green D investor. Crowe is, more accurately, a Trustee of Dartmouth College.

If you’re interested in becoming a venture capitalist or seeking to raise venture funding, then this interview with Jeff Crowe, a Dartmouth grad and a world-renowned investor, should be required listening. (Listen)

Jeff Crowe VC at Norwest Ventures

Disclaimer: This is not a solicitation to sell securities, which is only done through appropriate disclosure documents and only to appropriately qualified investors.

Episode Summary: Though Jeff Crowe has achieved world-class recognition for venture investing in startup companies like Lending Club, Spotify, and Uber, he didn’t start investing in or advising companies until he had successfully launched and exited a business of his own. In this podcast, Jeff shares his journey from founder to funder. Drawing on his experiences and track record as an operator and investor, Jeff offers valuable insights into growing a business. He also explains what he looks for in potential CEOs, the types of companies he invests in, and why he believes staying connected to alumni is essential.

Subscribe to Founders and Funders on iTunes, Stitcher, Google Play and Android Podcast Players.

Introducing Jeff Crowe

Jeff Crowe focuses on early stage investments in the internet, consumer, and software arenas as a Managing Partner of Norwest Venture Partners in Palo Alto, California. In 2017, for the fourth year in a row, Jeff appeared on Forbes‘ Midas List of the top 100 venture investors in the world. He currently serves on the boards of Common, Extole, Glint, Grove Collaborative, HoneyBook, Madison Reed, Modsy, Opendoor, Owler, and Talkspace. Jeff is also responsible for Norwest’s investments in Spotify, Uber, and Minted.

As a graduate of Dartmouth College and Stanford Graduate School of Business, Jeff is active in alumni affairs at both schools. He is an advisor to the Dartmouth Entrepreneurial Network, and he will be joining the Dartmouth Board of Trustees in 2018.

Jeff also co-founded the Dartmouth Entrepreneurs Forum, an annual event in San Francisco and Hanover that draws hundreds of Dartmouth alums from around the world.

Three Takeaways from This Podcast

Jeff Crowe started his career working in investments on the public market side of a bank. Though he often thought about pursuing venture investing as a next step, Jeff believed he needed to be an entrepreneur first. So he and a group of co-founders started an enterprise software company called Edify. Jeff and his team raised VC money for the business and eventually took the company public. After running Edify for several years, Jeff sold the company and made the move into venture investing.

In this interview, Jeff explains how he worked his way into VC and became an early investor in Lending Club, the first peer-to-peer lending marketplace on the Internet. He says that back in 2007, consumers thought the business model made sense, but financial experts thought otherwise. They believed that determining the creditworthiness of borrowers was problematic—as was convincing lenders that they would receive a return. Jeff shares why he got involved anyway and the lessons learned along the way.

From his many notable investments to the work that Jeff does now to mentor students, support entrepreneurs, and advise CEOs, Jeff shares insights that future founders and investors can benefit from. Here are just three takeaways from the interview:

1. Good venture capitalists are curious

Because venture capitalists frequently meet with new people and work with companies that create innovative, quickly evolving products and services, Jeff believes that people who are “deeply intellectually curious” will thrive in this industry. If you enjoy rapid change, strategizing, and constant learning, you might be wired for VC.

2. Getting to know the future CEO is crucial

According to Jeff, “There is a very high correlation between a company’s success and the characteristics of the CEO.” Before making an investment, his company spends a great deal of time with founders–getting to know them, learning about their background and experiences, checking references. This is especially important when it comes to the person on the founding team who is going to become the CEO.

3. Successful teams are resilient

Given the often turbulent environment at startups, Jeff looks for founders who are personally resilient and have built resiliency into their company culture. He is also looking for people who can pivot quickly in order to adjust to market conditions, product-market learning, customer acquisition strategies, and more.

Beyond his successes as an entrepreneur and VC, Jeff Crowe is a model for giving back to the schools he so proudly endorses. In addition to the contributions mentioned in his biography above, Jeff mentors individuals in a variety of less formal settings. Jeff shares with us what makes these relationships rewarding, why he believes others should be similarly involved, and what he hopes the people he has helped will do in return.

Learn More

If you want insights into how Dartmouth alumni are investing together, sign up for the Green D Ventures fund newsletter. You may also want to sign up for the Alumni Ventures Group newsletter to learn more about all of the alumni and special-interest funds at the company.

Connect with Jeff Crowe at Norwest Ventures or follow him @jeffmcrowe on Twitter.

Subscribe to Founders and Funders

Founders and Funders is a podcast where we discuss how entrepreneurs and investors work together to build great new companies. Our guests—many of whom are connected with AVG as entrepreneurs, investors, managing partners, fellows, and more—are invited here to talk about the journey of building companies from incubation to early stage investing and beyond.

If you want to follow more fascinating stories and insights from the entrepreneurs and investors who are part of the Alumni Ventures Group community, then subscribe to Founders and Funders on iTunes, Founders and Funders on Android, Stitcher, and other popular podcast channels.

See all Founders and Funders podcasts.

Related Episodes

  1. Episode 1: The Genesis (and Ripple Effect) of Alumni Ventures Group
  2. Episode 2: Companies Focused on the Triple Bottom Line Get Rewarded
  3. Episode 6: The Easiest (and Newest!) Way to Break into VC

Ready To Join The AVG Community?

Related + Next Steps

OLIO: Sharing Food to Reduce Waste
Alumni Ventures portfolio company OLIO offers a food-sharing mobile application that seeks...
Blue Note Therapeutics: Better Care for Cancer Patients
Dedicated to serving patients suffering from cancer-related distress, Alumni Ventures portfolio...
AVTV: Cabana Life
AVTV videos feature Alumni Ventures’ portfolio companies sharing their stories and asks with...