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20VC: Oren Zeev on Why Diversification Is Overrated, The Downside of Thematic Investing, Making Quality Decisions In Uncertain Conditions & Why He Has No Reserves Allocation

Jun 29, 2020

Oren Zeev, Founding Partner at Zeev Ventures, is known for his successful track record in early-stage investments. He discusses why he believes diversification is overrated and critiques thematic investing for its pitfalls. Oren shares insights on decision-making without partners, emphasizing intuition over rigid frameworks. He also highlights his preference for under-appreciated markets and the importance of character in assessing investment teams. His unique, concentrated strategy challenges conventional VC wisdom and showcases a fascinating perspective on the industry.

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INSIGHT

Seeking Input vs. Approval

Oren Zeev consults with trusted individuals but prioritizes his own conviction. He finds this purer than needing partner approval, which can hinder receptiveness.

ADVICE

Avoid Thesis-Driven Investing

Avoid thesis-driven investing. It leads to over-funded, competitive markets, reducing the chance of big wins.

INSIGHT

Price Sensitivity

Price sensitivity is not paramount for Oren Zeev. Picking the right team and opportunity matters more than getting a cheap price.

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Oren Zeev is the Founding Partner @ Zeev Ventures, one of the best and most under the radar firms in the early stage Silicon Valley landscape. Over the past decade, Oren has backed the likes of TripActions, Tipalti, Audible, Houzz, Chegg and Hippo Insurance to name a few. Prior to crushing it with Zeev Ventures, Oren spent 12 years as a General Partner @ Apax Ventures, starting in Israel and then moving to the US where he headed the Technology Practice of Apax and the Silicon Valley office.

In Today's Episode You Will Learn:

1.) How Oren made his way into the world of venture with Apax and how that led to his founding his own firm, Zeev Ventures?

2.) Having been in a venture partnership, why did Oren want to be a solo GP? What are the benefits? How does it change decision-making? What are the downsides? How does Oren discuss deals and ideas without partners? How does Oren explain the decision to LPs on being a solo GP?

3.) Why does Oren not believe in thesis-driven investing? What are the dangers and downsides to it? Why do most managers still do it then? Why does Oren specifically look for under-appreciated markets? How is pricing and competition different there? How does Oren assess his own price sensitivity?

4.) Why does Oren think that diversification is overrated? How does Oren think about cross-fund investing? Why is it such a strength that managers should use? Why do many not do it? How does Oren think about reserve allocation? Why is he the only VC to not have a reserves strategy?

5.) How does Oren think about fund deployment timelines? Why do LPs not like the annual fundraising approach? How does Oren size up his position in companies over time and round? How does Oren feel about founders taking secondaries?

Items Mentioned In Today's Show:

Oren's Fave Book: The Last Lion: Winston Spencer Churchill: Defender of the Realm

Oren's Most Recent Investment: Treeverse

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