TLDR:
Terri Burns, GV’s youngest-ever partner, has launched her own firm, Type Capital, to address the common flaw in venture capital deals known as “heat.” She aims to invest first without waiting for signals from other investors and plans to focus on digital consumer companies, tools for developers, and AI from Gen Z founders.
Key Points:
- Terri Burns launches her own firm, Type Capital, after noticing the issue of “heat” in venture capital deals.
- Type Capital will invest first and aims to move quickly and efficiently without relying on signals from other investors.
Terri Burns, who was GV’s youngest partner, observed a common flaw in VC deals during her time at the firm. The issue, known as “heat,” occurs when investors wait for signals from others before making an investment decision. Burns believes this phenomenon can lead to poor experiences for founders, as they face challenges in securing funding without the support of multiple investors. To address this issue, Burns has launched Type Capital, a pre-seed and seed investing firm that plans to invest first and move quickly without relying on signals from other investors.
At Type Capital, Burns aims to focus on digital consumer companies, tools for developers, and AI, particularly from Gen Z founders. During her time at GV, Burns led investments in companies like Partiful, an event-planning platform popular among Gen Z users. She plans to hire a team and help founders secure follow-on investments, emphasizing the importance of being the first investor to take a risk and build alongside founders. By avoiding the reliance on “heat” in investment decisions, Burns believes that Type Capital can win and earn respect from founders.
