Ascend Venture Capital LP Profile: David Hersh, Founder, Jive Software #openlp

When I was a founder, I had no idea what a Limited Partner in a venture capital fund was. Now that I run my own fund, I want to bring transparency to founders and let them know where our money comes from. Our LP’s are an incredible group of individuals who often advise our founders and myself as we strive to create the next generation of world-changing startups (and funds!). -KW

I met Dave when he was writing his upcoming book about getting startups “unstuck”. We clicked, I think because we both have experienced a version of the struggle to balance ourselves amid the pressures of growing a startup as a founder. Dave’s self awareness and humility are rare for someone with his outsized achievements. We’re fortunate to have him on board as an LP in Ascend, and happy he took the time to share his experience and insights here.

You're building a startup again at the earliest stages, after creating a $1B outcome with Jive Software. What drew you back into the game?

I tried venture and wasn't that great at it :). And a few years ago I discovered the art of the turnaround - acquiring "stuck" startups and turning them into strong companies. Mobilize was one of those….and I got hooked on it. I love the rush of startups, but as an older entrepreneur I get more energy from helping others now (employees, customers…the planet, where possible) than myself. It's like accessing a more powerful fuel source.

Taking off your founder hat, and donning the LP hat, what do you like most about early stage venture as an asset class?

The high beta. Tons of clear volatility but when it works, it can create phenomenal returns for everyone involved and hopefully a measurable change on society in its domain. It's also a lot more fascinating to learn about the investments - I don't spend nearly as much time looking at my fixed income funds :).

What's the best advice you have for a founder just starting out at the idea stage?

Don't fall in love with your idea such that you adhere to it too strongly. Separate your identity from the core concept (and the company itself) and let the market and team be the sandpaper and varnish that creates something magical. Become a steward for the company, not an iron fisted ruler.

You previously raised money from Silicon Valley giants like Sequoia and Kleiner Perkins. What's your best general advice to founders hoping to follow that path?

Like my answer above, the money, the VC firm and the partner you choose should all be in service of the business. Founders often see their startup as a series of funding rounds instead of optimizing the path to bring a new innovation to world. If the firm you're seeking is the best option to help take the company to the next level, and you work well with the partner there, great. But don't optimize for the name brand firm for ego reasons. It will come back to haunt you.

With Mobilize, you've spent a lot of time thinking about how people connect online. What do you think the next ten years look like for social networks?

There's certainly a pattern among younger generations wanting to use the new thing until it's no longer the new thing and then those product hang on to a laggard audience for awhile. If Discord gets acquired by Microsoft, watch how fast the teenagers find a new thing :). I think we'll see more of that continuing with new modes of fast, simple connections. With Mobilize we're focused more on professionals and enterprise buyers, so the trend that I see is more around data privacy and security, while at the same time embracing the best consumer experiences and new technologies like blockchain.

What song is currently getting the most run on your Spotify/Apple Music?

There's a lot of background work music being played….so I don't even know some of the artists that get the most play :). But I play the Westworld soundtrack a lot while writing. Run the Jewels for workouts / running.