Welcome to VC Corner: Q&A with General Catalyst Investor Niko Bonatsos

This week's VC Corner features Niko Bonatsos, Managing Director of General Catalyst's $4B fund. General Catalyst is known for its investments in successful companies like Airbnb, Honest Company, Snapchat, Stripe, and many more. In their words, "We're not just writing checks, we’re spending our working lives closely aligned with people who make a difference – and who have fun doing it."

• Niko Bonatsos is a seasoned investor with a particular interest in early-stage tech startups and collaborating with first-time founders.
• He believes that talent is universal and that opportunities should be accessible to everyone, regardless of background or experience.

General Catalyst's Mission

General Catalyst partners with ambitious founders who are building category-defining companies. Niko Bonatsos, as a Managing Director at General Catalyst, embodies this mission. He actively seeks out and invests in entrepreneurs who have the potential to disrupt their respective industries.

What Excites Niko Right Now?

Niko is enthusiastic about the convergence of augmented reality (AR) and cryptocurrency. This emerging intersection offers exciting opportunities for innovation and disruption. He's likely keeping a close eye on startups that are exploring this space.

Who Should We Be Watching?

According to Niko, Patrick Collison, co-founder and CEO of Stripe, is a founder worth observing. He emphasizes the importance of learning from successful entrepreneurs like Collison, who have built impactful businesses.

Essential Questions for Investors

Niko emphasizes the importance of understanding the "why now" factor when considering an investment. Investors like Niko want to understand the timing and relevance of a company's product or service in the current market. Why is this the right time for this company to launch?

Founders: Be Prepared for Investor Meetings

Niko stresses the importance of founders knowing their numbers. Having a strong understanding of your company's financial performance is crucial for making a compelling case to investors. This includes metrics like revenue, growth rate, customer acquisition cost, and profitability.

Niko Bonatsos's Insights for Entrepreneurs

Niko's favorite business book is Poor Charlie's Almanac, highlighting his appreciation for insights into investing and decision-making. This suggests his interest in applying sound principles to building successful businesses.

• He emphasizes the importance of walking with friends, showcasing his belief in the value of personal connections and relationships.
• His key piece of advice to founders: Treat every decision, meeting, and interview as a learning opportunity. Continuously strive to improve and grow.

Conclusion

Niko Bonatsos, as an experienced investor at General Catalyst, offers valuable insights for entrepreneurs seeking funding and guidance. His advice emphasizes the importance of passion, a strong understanding of your business, and continuous learning.

• Niko's investment focus on first-stage tech startups highlights the crucial role early-stage investors play in nurturing innovation.
• His emphasis on "why now" questions emphasizes the need for startups to have a compelling story and a clear market opportunity.
• His recommendation for founders to "know their numbers" underscores the importance of financial literacy and data-driven decision-making.