Bonfire Ventures 🔥 reposted this
Here’s how my ignorance led to a $400 million exit. When I moved to LA in 2006, I knew little about the tech scene. I was still managing international investment banking and frequently traveled to Europe and New York, unaware of the opportunities in my new backyard. After all, LA wasn’t Silicon Valley—it was Hollywood. That’s all most investors saw. But sometimes, being an outsider is your most significant advantage. Take Edgecast, for example, founded by a former I-banking client and now friend (Alex Kazerani). While I didn’t know much about content delivery networks, I knew and trusted him, so I became one of his first investors. Six years later, that “gut” decision resulted in a $400 million exit. Funny enough, my lack of VC habits became my superpower. I wasn’t stuck in the Silicon Valley playbook. My core investment strategy has always been about people and relationships—that’s where the true value lies. Sometimes, the smartest move is trusting your gut and betting on people, not just ideas. How has being an outsider in your industry given you an edge? Let’s trade stories on how "not knowing" can sometimes be the best advantage.
It’s a cool story, but I don’t think it proves your point. In poker you can play correctly and take a bad beat, and you can make the wrong bet and draw out against the odds. This is part of what’s hard about venture - it’s really difficult to separate alpha from luck. I’m not saying that you were just lucky - there’s not enough info to draw that conclusion. But if the claim is that ignoring best practice is a winning strategy over the long term, there’s not enough info to draw that conclusion either.
Mark Mullen it was heartening to hear a success story borne out of not playing the VC playbook. congratulations to you. I would love to chat if you are interested in listening to a story of a Fintech bring TradFi expertise to blockchain to broaden the product range of crypto investing.
100%. I bet on people vs ideas. I bet on outsiders vs insiders (hence the name outside VC) Paradoxically, I often feel that the more diligence you do at the earliest stage, the more likely you are to miss a great deal. There are always a million holes you can poke and reasons you can find to say no. It’s easy to get inside your own head and talk yourself out of a good deal instead of listening to your gut and looking for the reasons to say yes.
Agree-obviously!💪
You’re saying Ignorance is strength. Sometimes it is. You don’t know the ‘obstacles’ that others do. Good for you.
Totally agree. Early stage VC is far more psychology than it it finance. 🧠
Good insight while not a VC obviously, I found that being less technical allowed me to challenge technical assumptions. While developing a number of highly successful video game franchises, I was always asking for features and advancements more technically savvy creative executives wouldn’t think of…served me well and loved every second of it. Great share Mark.
Absolutely agree and support every single word! We are people, working with people, building products for people ❤️ and “gut”‘instinct is always right! Congrats!
Stepan Khzrtian you and Mark should connect
Co-Founder / CEO @ SGNL
1modoes it count that my "gut" instinct was to re-open our round to get you as an investor? 🤣