Rebecca Kaden – Thesis Driven Investing - [Invest Like the Best, EP.155]

Thesis Evolution

Rebecca Kaden, a partner at Union Square Ventures (USV), outlines the evolution of the firm's investment thesis from its inception to the current third iteration. Initially, USV focused on large networks of engaged users, leading to successful investments in companies like Twitter and Etsy. Over time, the thesis evolved to include vertical networks and infrastructure, recognizing the potential in both consumer and SaaS applications. This shift was driven by the need to decentralize the internet, as centralized platforms posed risks to innovation and consumer data security. Rebecca explains, "The belief is that blockchain is the first technology that really has a shot at decentralizing the Internet." 1

   

Investment Themes

USV's current investment thesis focuses on three main areas: education, finance, and well-being. In education, Rebecca highlights the need for innovation to bridge the gap between learning and job readiness, citing platforms like Duolingo and Quizlet as examples of effective educational tools. "The gap between your education and your job readiness is so much bigger than it's ever been," she notes 2. In finance, the goal is to create products that serve the middle market, often overlooked by traditional banking models. Finally, in well-being, USV is interested in consumer-driven healthcare solutions that offer greater autonomy and affordability, such as Modern Fertility, which provides accessible health information at a lower cost 3.