Access Venture Partners: 2022 Recap
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Access Venture Partners: 2022 Recap

By January 6, 2023 January 9th, 2023 No Comments

2022 snapshot of our learnings & looking forward to ’23

Frank Mendicino
1

A portfolio win that was important this year?

ThreatX's Series B financing, while just a milestone and not determinant of ultimate success, was a market indicator of progress and the importance of their platform.
2

Why you think 2023 will be an exciting year to invest in early stage companies?

2023 like all years will be a great year to support entrepreneurship. That is what makes America exceptional. America is not perfect but through political, business and social entrepreneurship we find our way to good solutions to many difficult problems. Not always as fast as we would like but the trend lines are in the right direction.
3

What is something you learned this year that changed the way you think?

Putin’s war in Ukraine has illustrated the damage that can be done to innocent people by a dictator without checks and balances. I think it is useful to constantly re-learn that how government is formed and how it works is important and that a responsibility of citizenship is to pay attention.
4

What industry/ new technology are you looking forward to tracking in 2023 and why?

AI, to me, is the technology of our age. It has and will continue to change how our society works for better and for worse.
Eric Shu
1

What is something you learned this year that changed the way you think?

I read The Practice of Groundedness, by Brad Stulberg and it is a breath of fresh air for anyone in this high tempo world of entrepreneurship and venture capital. Stulberg shares six principles to help us ground ourselves in sustainable success, and the tactics to put them into practice. I learned that you're able to ground yourself, no matter the pace, and that the act of grounding really does help ensure long-term momentum. I read this at the beginning of 2022 and am re-reading it again this month.
2

What industry/ new technology are you looking forward to tracking in 2023 and why?

I'm looking forward to continuing diving into the world of cybersecurity, dual-use technology, and deep tech. With such a broad space, here is an excerpt of three areas I've been thinking about. Cybersecurity // Cloud Native Security Solutions: As businesses continue migrations from onprem to cloud, enterprise network security remains a challenge. We've seen zero trust network access becoming widely adopted as well as the continued focus on secure access service edge (SASE) solutions. What new gaps will be revealed and how will consolidation of tools impact growth and innovation in this arena? Dual-use // Internet-of-Things and Operational Technology (OT) Security: The growing number of edge devices has exponentially increased the attack surface for organizations. Through the implementation of sensors and devices and continual modernization of industrials, manufacturing, and energy sector, security is needed more than ever to ensure resilience to threats. What technology solutions at the intersection of hardware and software can keep the people, machines, and critical infrastructure safe? Deep Tech // Quantum infrastructure: With the National Quantum Initiative Act of 2018 and the recent CHIPS Act, the US has committed to broadening its focus on R&D and eventually commercialization of quantum technologies. What advancements in quantum infrastructure will lay the groundwork for the earliest adopters in pharmaceuticals, financial services, or telecommunications? What software solutions will help democratize access to quantum computers?
Elyse Kent
1

What is something you learned this year that changed the way you think?

Two books I read were especially pertinent this year - Cadillac Dessert and Ray Dalio's Principles series. Although the books couldn't be more opposite in terms of subject matter, the underlying observations are the same: history repeats itself. The same economic and consumption patterns continue to arise and, unfortunately in many cases, the way we approach solutions remains the same which allows for mass exploitation of the system. Many investors, entrepreneurs and activists are looking for innovative ways to alter the trajectory of consequences stemming from our entrenched socio-economic patterns. As with any year, I hope that ‘23 will be a marquee year for breakout technologies and systematic change.
2

A portfolio win that was important this year?

We were able to bring on some amazingly talented people within the portfolio this year including Lucas Greenberg, who joined Bonusly as VP of Sales from Hotel Engine, Danny Randa, who joined Tetra Insights to lead Demand Gen & Growth from Guild Education and Dru Jacobs, who joined Bonusly as CMO from Matillion.
3

What industry/ new technology are you looking forward to tracking in 2023 and why?

Tech empowering global movement: Several trends have continued to entrench themselves since covid - global citizenry being one of them. I’m tracking tech working to remove the friction of globalization - real-time payments & fx (B2B & B2C), applications of blockchain for digital identity, cross-border real estate ownership & blockchain solutions for cross-border trade and supply chain. Conversational & curated commerce: One way for ecomm to truly become the default way to purchase goods both large and niche is to outperform the personalized, one-on-one brick & mortar experience. When it comes to offering a personalized experience, some e-retailers have begun to offer chat recommendations and conversational commerce but this hasnt become mainstream. Secondly, endless scrolling and the sheer amount of overwhelming options reduces conversion. Personalized experiences for shoppers, powered by AI, will simplify the purchasing and recommendation process.
Alex Houghtalin
1

What is something you learned this year that changed the way you think?

I recently read Money by Jacob Goldstein, one of the hosts of Planet Money, which is possibly my favorite podcast. It's an entertaining history of money and finance covering the creation of the first coins, banks, stocks, and more, ending with cryptocurrency as it stood in 2020. Goldstein makes a number of interesting points in the book, but what I found most relevant was the contrast he draws between cryptocurrency - a "clever technological breakthrough" that was proclaimed to be money by its creators vs. most prior innovations in money and finance that emerged somewhat incidentally and were adopted over time because they met a real and urgent need. This view of blockchain and crypto as a solution looking for a problem might not feel terribly new in 2022, but regardless, the book was a fun read and served as a great reminder to stay focused on problems rather than tech hype.
2

Why you think 2023 will be an exciting year to invest in early stage companies?

I'm grateful to be going into my first "downturn" as an investor alongside an experienced and level-headed team that has been through it before. I'm looking forward to learning from our founders in how they navigate this period and rolling up my sleeves to help more than ever. There's also going to be opportunities to capitalize on that we'll be ready for - both the impressive talent that's becoming available and companies being founded that address needs so urgent they can't wait for the return of bull market conditions
3

What industry/ new technology are you looking forward to tracking in 2023 and why?

At a high level, I'm excited by innovations that will change the way we work to make people more productive and fulfilled in their jobs, and new approaches to how we train and upskill workers to create broader opportunity and keep up with the rapidly changing demand for skills. I see AI/ML in its many varieties - deep learning, NLP, computer vision, generative models, etc. - as a huge enabler in this space. While AI has the potential to replace humans in many tasks, the much more exciting opportunity is in worker development and enablement. Some specific themes I'm particularly interested in are:
Immersive Training and Guidance: Immersive training, whether it's a simulation of a difficult conversation with a colleague or a 3D experience of performing surgery, is a highly effective way to learn. This kind of training has been historically expensive to create, but generative AI, including the just released Point-E 3D generative model, has the potential to dramatically reduce the time and skill required for content development. Real-Time Coaching: While not a substitute for formal learning and training, there's an important role to play in technologies that provide in-context, just-in-time guidance to workers. This is a concept Emergence Capital has coined as "Coaching Networks" and written brilliantly on. In addition to the AI-based solutions Emergence describes, I'm also interested in solutions that dramatically scale the capacity and reach of remote human experts. Hiring for and Managing Skills: There has been a significant shift in the HR and learning market toward skills, with many of the industry leaders like Workday, Cornerstone, and Degreed investing heavily in skills taxonomies and tools to assess or infer skills using AI. There will be room to compete for companies that find innovative ways to assess skills and match talent, particularly for harder to measure soft skills that could be challenging or even problematic to infer from easily accessible data (e.g., resume, LinkedIn). Vertical Process Automation: There is tremendous ongoing opportunity to automate repetitive and mundane tasks, freeing people to do higher level thinking and creative work. Many technologies fit into this bucket, including robotics and next-generation SaaS solutions with a heavy focus on seamless data integrations and intelligence built in. There is also an opportunity for vertical Robotic Process Automation solutions to serve major legacy software use cases that are common across an industry with out-of-the box, fast time to value RPA products.
Brian Wallace
1

What is something you learned this year that changed the way you think?

I re-read Measure What Matters each year and give a copy of the book to the CEOs at the first board meeting I attend. We often get in a cycle of measuring the wrong indicators and getting lost in day-to-day activity. Simplifying and honing in on key indicators is more productive and ensures everyone is rowing in the same direction. The most interesting book I read last year was Hyperion, which deals with the collision of the AI universe and humans 700 years in the future. Interestingly, it was written by a Colorado author in 1993 when AI was science fiction. Literature can help us find parallels and consider consequences that we've often overlooked in the short-term.
2

What industry/ new technology are you looking forward to tracking in 2023 and why?

Developments in AI/ML and Quantum computing will dramatically change our lives, in good and bad ways. There will be incredible gains in efficiency. The application of ML/AI is similar to that of robots but with endless iteration. Robots are designed and built by humans to perform a task. The robot does its task over and over again until it wears out, never changing or adapting or learning. AI does its task repeatedly, but by learning from the data, it improves and changes. Just as robots replaced factory line workers, AI will replace computer programmers, devops engineers and, maybe, poets and writers and teachers.
3

Why you think 2023 will be an exciting year to invest in early stage companies?

It is always a great year to be an entrepreneur in the USA. While it is true that venture capital returns are historically better in an economic downturn, it is also a fact that the United States has an abundance of entrepreneurs and the greatest economic and political system that provides the freedom and access to capital and encouragement for entrepreneurs to take risks. In good times and bad, we'll continue to help build great companies that may just make the world a better place.
Kirk Holland
1

What is something you learned this year that changed the way you think?

During a tumultuous financial year, it was especially helpful to read The Psychology of Money . I had the opportunity to meet the author, Morgan Housel, and discuss his premise - that everyone makes financial decisions differently and that most people are not ROI-driven, rational actors. Understanding these core differences, and how psychology can work for you or against you, has helped me sympathize with others and collaborate more effectively on financial decisions.
2

What industry/ new technology are you looking forward to tracking in 2023 and why?

The Future of Work has become even more of a focal point as we adjust to new norms. I’m excited about finding tech that will enable all parts of an organization to become more effective at leadership and organizational management. I was fortunate enough to start my career at Procter & Gamble which had endless resources to help managers develop strong leadership skills. However, most organizations cannot afford the same education & mentorship programs. With emerging technologies such as realtime video, realistic simulations and AR/VR, I believe broad platforms can enable all managers to develop authentic leadership skills and effective communication.
3

A portfolio win that was important this year?

One of my favorite parts of my job is working with and mentoring our CEOs. Last year, I really enjoyed working with Seamus Nally, CEO of TurboTenant, on two critical strategies for the company. First, we began to focus on unit economics and less on pure growth. Seamus did a phenomenal job analyzing data and executing a plan which resulted in significant improvement on unit economics. Secondly, we added products to drive recurring revenue and moved away from a purely transactional business model. It was quite a challenge as both of these strategies tend to compress growth, as it initially did at TurboTenant, but Seamus and I worked closely together and with the board to get everyone to understand the value and get aligned on these strategies.

2022 snapshot & looking ahead with our 3 newest portcos

amelia wilcox, founder of nivati

Nivati

Seed, AVP V

Salt Lake City, Utah

Amelia Wilcox, CEO & Founder

1. What do you see as the most noticeable innovation and/ or trends in your industry/ problem space? 
More people/companies are turning to platform solutions to fill the gap that access to mental health care is preventing (i.e. shortage of therapists, lack of availability, lack of credentialed therapists) – this is good and bad. great because more people are getting proactive care to prevent from ending up in crisis, bad because there are still so many people who need support when in a crisis that aren’t getting it. I like that my fellow innovators are thinking outside the box to help solve this with technology and feel optimistic that we will see much better tools evolving as a society that will help all of us.

2. What have been the most notable milestones of 2022 for Nivati? 

We closed $4MM in venture funding in March, launched our new product to clients in September, took our new website live in October, increased revenue by 119% in 2022, and Q4 was the biggest month we’ve ever closed at 56% than our next highest month!

3. What’s next for Nivati? 

We are focusing 2023 on 3 things: creating a more personalized and interactive user experience in the app based on what users need help with, integrating our self-directed therapeutic resources with the live providers to make therapy more effective and require less face time with a provider, and building and tracking clinical outcomes that can be delivered back to the user and the company.

4. Any advice to founders who are going out to raise their seed round?

Great companies still get funded in any economy. Don’t let fear drive you, but work hard on driving the metrics that matter so that you qualify.

Tidal Cyber

Seed, AVP V

Washington, DC

Rick Gordon, CEO & Founder

1. What do you see as the most noticeable innovation and/ or trends in your industry/ problem space? 

The trend in CTI toward ATT&CK Mapped TTP reporting has been profound. This demonstrates the demand for insight at a higher level of abstraction than has been traditionally reported via IOCs (indicators of compromise). This trend fuels the need to relate adversary TTPs to adversary groups, malware groups, and vendor capabilities and is the driving force behind a rapidly growing market for threat-informed defense.

2. What have been the most notable milestones of 2022 for Tidal? 

  • Delivery of the Tidal Community Edition and industry recognition for the innovation
  • Closing four top-tier design partner customers in year 1
  • Closing >$4 million seed round

3. What’s next for Tidal? 

We are focusing 2023 on launching our enterprise product this quarter – Q1 – and will be heads down working to demonstrate product market fit and scaling ARR.

4. Any advice to founders who are going out to raise their seed round?

Focus on developing strong design partner relationships, invest early in experience product management skills and sprint to evidence of product-market fit

Wednesday Talent

Seed, AVP V

Denver, CO

Jeremy Hamel, CEO & Founder

1. What do you see as the most noticeable innovation and/ or trends in your industry/ problem space? 

The most noticeable trend in talent acquisition is the focus on candidate experience during the recruiting and hiring process. In 2021 it was as strong a candidate market as I’ve ever seen, and in 2022 it flipped (at least in tech), but the focus on providing a better candidate experience (pre-hire, hiring process, and onboarding) remained a consistent center of attention. Companies are realizing that their employer brand has a massive impact on their ability to hire talent and the cost and efficiency of running their talent acquisition organization. They are focusing on modernizing how they present themselves to their talent market and how candidates experience interacting with them as an employer.

2. What have been the most notable milestones of 2022 for Wednesday? 

  • We released our platform
  • We sold our first enterprise pilot to Manpower Group, a 30,000-employee global organization.
  • We got our 1st renewal

3. What’s next? 

2023 is all about focus and *truly* proving product-market fit. We want to see 10x the number of channels (collections of employee videos), expansion on our pilots, and renewals. In February, we will be releasing a significant update to our platform that will make the process of collecting, managing, and publishing employee-generated video even more simple for our customers.

4. Any advice to founders who are going out to raise their seed round?

Prove as much as you can before going out to raise, use your proof points to tell a story that illustrates your vision, keep investor meetings grouped together to create momentum, be earnest and compelling during your meeting using your story as your framework, don’t be afraid to disagree or pushback, don’t get discouraged – wear your passes/rejections as badges of honor, just keep going …

If you’re a startup interested in raising early-stage funding for your tech startup, reach out to us – we invest in a cyber, SaaS & marketplace businesses at the seed & series A stages.

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