“Who in Their Right Mind Would Raise a Venture Fund in the Middle of a Pandemic?”

That was the question I got from a friend after I told him about my plans for Huron River Ventures’ next fund. “John Wooden,” I replied. “What?” he said.

There is no doubt that 2020 is a year like no other. No one who is reading this from their home office, with a face mask on their desk and their Zoom shirt hanging on their chair needs to be reminded of why.  Certainly, the number of emails in your Sent folder that include the phrase “…in these challenging times…” is as “unprecedented” as sports playoff bubbles, learning pods, virtual concerts, takeout cocktails and Jeff Bezos’ net worth. Unfortunately, so is a 33% quarter-over-quarter drop in GDP and a nearly 25x increase in jobless claims over a single two-week period.

But if the initial zeitgeist of post-lockdown 2020 was the feeling of living in unprecedented times and adjusting to a “new normal”, increasingly it is shifting to the realization that we—as a society, a country, a planet—are at a turning point in history. The thin veneers of a resilient economy, a fair and equitable society, a stable and predictable climate, and a culture bonded strongly by a glue of shared beliefs and values were torn away by a microscopic organism that is not even technically alive. The result has revealed an economy that works well only for those at the top, a society divided by a web of structural inequities, an unpredictable climate nearing its tipping point, and a culture increasingly split by competing tribal beliefs of unquestioned superiority over the other that make agreement on even basic facts difficult.

And now with these realities laid bare in front of us, it seems irresponsible to simply hunker down with an excessive supply of toilet paper and a Netflix subscription, wait for the multitude of storms to pass and go back to our prior state of blissful ignorance. For perhaps the first time ever, it is not overstating to say that our planet, our democracy, and our way of life ALL hang in the balance. Unfortunately, which path we take will not be settled by the simple act of filling out a ballot (though it is a necessary step!). Rather, it will be decided by persistent, determined and collective action, or inaction. Choosing to do nothing is still choosing.

I choose to act. I will look in the mirror. I will volunteer and donate. And I will vote. But I also choose to do more. I choose to use all the tools at my disposal to try to tip the scales toward resiliency, equity in opportunity, and sustainability. As an investor and company builder for the last 20 years, my personal toolbox includes the things that help entrepreneurs transform their visions for a better world into economic reality—belief, partnership, guidance, and of course, capital.

I’m a venture capitalist because I believe that entrepreneurship can be the strongest force for inclusive and positive transformation in our economy and society. The drive to create things that do not yet exist, build platforms for change and develop solutions to big problems is a force that—if directed and supported properly—truly can change the world.

Enter HRV 20/20, the next Huron River Ventures investment vehicle. As the name implies, this is not a typical venture fund, and it was created and will operate in full consideration of the “unprecedented” year that is 2020. Just as this year has challenged our society to reconsider how and where we work, and whether we really need to travel to get things done, it has caused me to reconsider the traditional early-stage fund management and operating model and the distinction between fund manager and entrepreneur. In future posts I will share more on the outcome of these re-considerations, as well as more details on the fund.

“Never mind,” I said to my friend, “The better question is—if I really believe in what’s at stake, how could I not raise a fund now?” He replied, “Well, you could fail.” I had to leave it there to hop on a Zoom call (go figure). But later I sent him a text: “The greatest failure of all is the failure to act when action is needed.” — John Wooden

📷 https://www.nytimes.com/2010/06/05/sports/ncaabasketball/05wooden.html