20VC: Kleiner Perkins' Mamoon Hamid on Investing Lessons from Leading Rounds in Figma, Slack and Rippling | Lessons Building a Generational Defining Firm with Kleiner Perkins | AI: Where Value Accrues, Startups vs Incumbents & Scaling Laws

Decision-Making

Mamoon Hamid's approach to decision-making in venture capital is rooted in conviction rather than voting structures. He believes that each partner should have the autonomy to lead with their conviction, which is built over time through experience and intuition 1. This method allows partners to test each other's conviction through discussions, rather than formal votes, fostering a collaborative environment where ideas are rigorously examined.

You have to give into the conviction of the person wanting to lead. And so the way we work is that because we sit around the table, we literally get to see each other's body language.

--- Mamoon Hamid

This approach has led to contentious yet successful investments, such as Figma, where initial skepticism was overcome through collective conviction 2.

   

Risk & Competition

Mamoon embraces competitive markets, seeing them as opportunities for creating enterprise value. He appreciates products that carve out new markets, like Slack and Figma, which established new categories in their respective fields 3. Despite the challenges of competitive environments, he believes in the potential of innovative products to redefine market landscapes.

I love companies that create markets. They get to create the playing field. They play on the playing field, and they win the game.

--- Mamoon Hamid

His experience during market downturns, such as the global financial crisis, highlights his belief in investing in strong founders and innovative ideas, even when market conditions are unfavorable 4.

   

Successful Outcomes

Mamoon's investment strategy focuses on identifying potential rather than relying solely on financial metrics. He criticizes the reliance on revenue multiples for early-stage companies, advocating for a deeper understanding of product engagement and market potential 5. This mindset has led to successful investments in companies like Slack, where user engagement data indicated significant growth potential.

It's really a mistake to look at revenue multiples at like half a million. A million.

--- Mamoon Hamid

Additionally, Mamoon emphasizes the importance of being aspirational capital, where founders choose investors based on the value they bring beyond financial resources 6.