From 10 to 20: Sterling Witzke, Partner — Winklevoss Capital
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We asked 12 amazing founders and investors to share a look back and predictions for the road ahead. Celebrity photographer Ashley Batz joined in to capture these trailblazers on the cusp between decades & author Alice Berman penned an essay about decade that was. Find the full article here.
What changes have you noticed over the course of your career when it comes to your field of work? Where do you see those changes continue to apply themselves in the coming decade? One of the most important changes to the venture capital industry over the last decade has been the increased attention to the industry’s lack of diversity. However, although the conversations are happening and the media has picked up on the problem, in practice, we have a long way to go in the decade to come.
For example, with regards to gender diversity, only 11% of decision makers at VC funds larger than $25M are women. This has far reaching implications, as the decision makers who control the investment flow ultimately decide what products and services get created and used by each of us in our daily lives. Diversity of perspective in decision making leads to more successful and more inclusive services and products, and ultimately more successful business outcomes. Over the next decade, I hope to see the venture capital industry get to a place where diversity on decision making teams is the norm, not the exception.
Which trends do you think are most important for us to focus on in the next year? 2019 has been a watershed year in terms of bringing data issues and security to the forefront of public discussion. This year, there have been over 5,000 data hacks, exposing almost 8 billion records. As a consumer, it felt like almost no online platform that held our data was safe or secure. From ordering food (DoorDash exposed 5 million records), to using a bank (CapitalOne exposed 106 million records), to having blood drawn (Quest Diagnostics exposed 24 million records), our everyday activities left us vulnerable.
In the near future, I expect blockchain to begin to solve many of these issues of data ownership and privacy. Blockchain platforms will allow us, as customers, to custody, anonymize, and sell our data to corporations in exchange for transparency in how our data is used, and benefits such as discounts or relevant ads. Imagine being able to anonymize data showing how you use Google, Instagram, Amazon, and Apple Pay by simply tapping a button in an app, and then selling that data in exchange for discounts at your favorite stores, better rates on your credit card, or even lower health insurance premiums.
The commoditization of data, that has grown exponentially over the past decade, isn’t going anywhere. Thankfully, blockchain applications have the ability to put the consumer in the driver’s seat. Over time, I believe it will become normal for users to expect to see and control which parties have access to their data and to get paid for use of that data, leading to a more customized and rewarding online experience.
What’s been an obstacle you’ve consistently run up against in this industry, and do you see that changing? Given the number of companies we see on any given day, in any given week, the most consistent challenge I face as a venture capitalist is maintaining the ability to sort through the noise. There is sometimes a fine line between a crazy idea and a prescient idea, and the ability to avoid hype, which is ever-present in the valley (just ask a VC if he/she has ever had deal FOMO!) is a consistent challenge that is key to staying ahead and thriving in this industry.
Where should we be looking for inspiration on “what’s next” in investing? Over the past year, we saw several much-hyped Unicorns do a big belly flop into the public market pool. From Uber and Lyft to Peloton to WeWork’s spectacular failure to launch, the public market could not have made it any clearer that (finally!) profits matter. With the increased scrutiny on profitability, I’m looking to historically “unsexy” industries for a new wave of innovation. I expect areas like agriculture, manufacturing, and supply chain to be ripe with investment opportunities.
What are you personally invested in (on an emotional level) over the next decade? Startup culture shouldn’t be reserved for the coastal elites, yet over 75% of all venture dollars go to startups in New York, San Francisco, and Boston. As a native South Dakotan, I am personally invested in changing this. Intelligent people with world-changing ideas reside in every location, and democratizing their access to capital is something I am incredibly passionate about. I’ve recently joined a fund called Titletown Tech as their Chief Venture Advisor to help them in this exact mission. Titletown Tech is a joint partnership between the Green Bay Packers and Microsoft that invests in founders focused on improving technology in industries of great importance to the Midwest such as agriculture and manufacturing. I’m hopeful that within the next several years, more funds focused on investing in founders in secondary and tertiary markets will launch, and we will get closer to democratizing capital across geographies.
What is the most important part of your routine, the thing that really keeps you on track mentally every day? Over the past several months I have made a concerted effort to book workouts into my busy schedule and it has made a world of difference. Investing in your health is the ultimate way to invest in yourself.
What’s the best piece of advice you’ve ever given? “Don’t let anything drown out your inner voice”. I can’t actually take credit for this as it was advice Steve Jobs gave to my graduating class at Stanford in 2005. But it’s the best piece of advice I’ve ever received and therefore the piece of advice I try to share whenever I get the chance. Your gut often knows the right decision, and following your heart and intuition is one of the most important skills a person can have.
Which trend for the coming year is your favorite: sustainability, personalization, or AI? My favorite trend for the next year is AI — and I think one of the most interesting near-term applications of AI will be the personalization of entertainment.
We all know that when we use services like Netflix and Spotify, their algorithms take data from our digital footprint and use that data to suggest content they think will be relevant to us. However, so far, the content itself hasn’t been personalized. If you and I are recommended a certain show on Netflix, the show is the same regardless of which one of us is watching. Expect to see this change in the near future as AI gets more and more sophisticated.
For example, fed enough footage, AI systems can be trained to refine facial movements and expressions and replicate them on any CGI model. This promises to enable things like swapping your favorite actor in as the lead in an upcoming movie, or even casting yourself. Do you want to see yourself play the lead in Top Gun? With enough data and footage fed into its systems, AI has the potential to enable that.
Read all 12 profiles here.
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