In early 2024, two prominent venture capital firms, Andreessen Horowitz and Lerer Hippeau, announced that they were pivoting away from consumer tech. This decision sparked a heated social media debate about whether there are still opportunities in this space. However, Maven Ventures’ Jim Scheinman and Sara Deshpande firmly believe that the answer is yes.
To prove their point, Maven Ventures recently raised $60 million in capital commitments for a fourth fund, which will focus on backing massive consumer tech trends. As one of the most successful venture capital firms in this space, Maven has a proven track record of identifying and nurturing innovative companies that have the potential to change the world.
A Legacy of Success
Maven Ventures was founded by Jim Scheinman in 2013, with Sara Deshpande joining soon after to focus on consumer AI and personalized medicine. The firm has since made over 50 investments, with a total assets under management of $200 million. One of the key themes for Maven is seeding similar consumer tech trends, including applications of AI, personalized healthcare, climate and sustainability, family technology, and fintech.
Some notable companies in Maven’s portfolio include Zoom, which revolutionized video conferencing, and Cruise, a leading autonomous vehicle maker. Scheinman himself is credited with coming up with the name "Zoom." These successes demonstrate Maven’s ability to identify and nurture game-changing companies that have the potential to disrupt entire industries.
The Trough of the Cycle
When asked about the notion that no one wants to invest in consumer tech anymore, Scheinman firmly stated that it’s not true. He believes that this sector, like others, has cycles where consumers either fawn over a new technology or dismiss it as the "worst." According to Scheinman, consumer tech is currently in the trough of the cycle, but he sees this as an opportunity rather than a challenge.
Why Now is the Time to Invest
As Scheinman explained, when he started investing, the internet was the first major platform. Then came mobile, cloud, and AWS. He thought web3 would be the next big thing, but that was eclipsed by artificial intelligence (AI). Maven will now focus on building the next game-changing health AI company or robotics AI consumer business.
A Golden Age of Investment
Scheinman firmly believes that this is an excellent time to invest in consumer tech. "This is absolutely the time when multibillion-dollar companies are born, from now to over the next three to four years," he said. He predicts that dozens of companies currently unknown to the general public will become household names alongside Zoom and Cruise.
Proven Track Record
Maven Ventures has a remarkable track record of success. As of 2024, 16% of their portfolio companies have reached a minimum $500 million exit or valuation, which is an impressive 10 times the industry average. This demonstrates Maven’s ability to identify and nurture innovative companies that have the potential for massive growth.
A Bright Future Ahead
With its proven track record and commitment to identifying and nurturing game-changing companies, Maven Ventures is well-positioned to continue leading the way in consumer tech investments. As Scheinman and Deshpande firmly believe, this is an excellent time to invest in consumer tech, with a golden age of innovation and disruption just beginning.
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