Monday, December 23, 2019
Reflections on 2019: Kelly Perdew, Moonshots Capital
Every year, at the end of the year, we share some reflections on the past year from our readers, entrepreneurs, venture capitalists, sponsors, and others in the local technology community. Today, we share the thoughts of Kelly Perdew, the founder and Managing Director of Moonshots Capital (www.moonshotscapital.com). We'll be featuring contributions all through the holiday season.
What was the biggest news for you/your company this year?
We have invested in 13 companies out of our Fund 1 so far and are more bullish than ever on the amazing entrepreneurs we are meeting and the companies we are helping them build. We also had our first exit for Moonshots Capital Fund 1 --Threatcare. The exit through acquisition by ReliaQuest is the first of what we expect will be many exits for our Fund 1 portfolio. For my partner, Craig Cummings, and I - 2019 was our first full year as Venture Capitalists!
What new technology area, startup, service, or app did you find most interesting or useful this year, and why?
The podcast ecosystem continues to grow and I’m excited to see this content medium continue to change the way people receive information and share new ideas. Our 2019 investment in Backtracks, a developer of podcast analytics software, has shown fantastic traction and continues to provide value to podcast creators helping them to better understand their listeners and monetize their content. Think Google Ad Words for podcasting. Backtracks and other killer companies will create significant value as the podcast ecosystem accelerates in 2020.
What was the biggest lesson you learned this year?
The biggest lesson learned this year has been how hot the LA tech ecosystem has become. Seed activity last quarter continued to trend upward, with 28 companies raising $68M of funding. Due to this, seed rounds have become more competitive, with more expensive valuations and more oversubscribed rounds. At the same time, more capital continues to be raised in LA. Since 2010, $6.3B has been raised by VC funds and at least $35B has been invested in LA startups from outside the city (Amplify, The Los Angeles Tech and Venture Scene 2019). This along with Honey’s recent exit to PayPal for $4B, which local VC firms such as Mucker Capital, Wonder Ventures, Bam Ventures, Anthos Capital, Plug and Play, and Ludlow Ventures is a good sign that the LA tech ecosystem will continue to see massive returns.
What are you most looking forward to in the technology/startup world in 2020?
I’m looking forward to seeing how AI continues to unfold. A few of our portfolio companies are using AI (i.e. Yonder and Gretel) as a significant part of their business models; but, I believe we’ve only just scratched the surface on its applications. AI has applications in almost every walk of life. No matter what sector or region you are investing in, it will have an impact.
Kelly Perdew is the managing general partner of at Moonshots Capital. Perdew has founded or held senior executive operating roles in ten companies and some of his notable investment/ advisory/board roles have included: LinkedIn (LNKD), Pandora (P), TrueCar (TRUE), Active Networks (ACTV), ID.me, Scopely, Fair, Olive, RideScout (DAI), Harvest.ai (AMZN), Ustream (IBM), Klout (Lithium), Fitmob (ClassPass) and Bitium (GOOG). Perdew earned a BS from the US Military Academy at, West Point and served in the US Army as a Military Intelligence Officer after he and completed Airborne and Ranger training.