Thesis

We are thesis-driven investors.

Harnessing the power of demand aggregation in producer- led markets.

Many of the biggest venture successes (Amazon, Uber, Airbnb, Spotify, etc.) came from startups that aggregated consumer demand on a single tech-enabled marketplace platform. By concentrating demand, they effectively compelled the supply side to plug into their systems, unleashing powerful flywheels (including network effects) that led to reshaping entire industries.

But in many industries (insurance, real estate, wealth management, etc.) demand is controlled by human intermediaries (“producers”). Brokers, agents, advisors, and small business “rainmakers” cannot be replaced by technology. Viewpoint backs startups that aggregate demand through intermediaries rather than bypassing them, building the next generation of dominant marketplaces and platforms in sectors where people, not just software, drive demand.

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In producer-led industries, tech-enabling startups that deliver new distribution to manufacturers are hard to beat. They benefit from accumulating advantages of scale. Because they can be paid a percentage of the distribution revenue, their contract values can balloon in a short time. And the more distribution they control, the more they can charge per-unit sold, giving them cash to re-invest in their own growth.

This capital-efficient dynamic is a recipe for great VC outcomes.

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Lorem ipsum dolor for the secondary thesis when it is ready in the future

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In insurance, wealth management, real estate, and many other industries, the “producer” is an agent, broker or advisor who finds potential clients and then helps them choose a product or service that fit their needs. 

The very existence of a producer signals several things about a market. First, it says that the market is complex: It might have a lot of manufacturers with countless products, or a messy analog process, or it might be a rarely purchased service. Second, clients in this market need a high level of assurance to pull the trigger. They seek out agents or advisors to get that peace of mind. 

Together, those two dynamics mean that distribution — that is, finding leads and closing sales — is particularly challenging in such markets.

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In producer-led industries, tech-enabling startups that deliver new distribution to manufacturers are hard to beat. They benefit from accumulating advantages of scale. Because they can be paid a percentage of the distribution revenue, their contract values can balloon in a short time. And the more distribution they control, the more they can charge per-unit sold, giving them cash to re-invest in their own growth.

This capital-efficient dynamic is a recipe for great VC outcomes.