Ajay Kamat joined Pear VC as a partner after Instacart acquired his startup Wedding Party in 2015. This interview is a snapshot from when it was published, so roles and portfolio details may have changed. He said Pear stood out because it works actively with preseed and seed companies on their first five hires, strategy and activation plan.
After his startup, Wedding Party, was acquired by Instacart in 2015, Ajay Kamat joined Pear VC as a Partner. His reason? “Pear VC was one of Wedding Party’s investors. After working with them for close to five years, we had gotten to know each other so well. They were kind and helpful investors, and collaborated closely with our team during the good times and the bad”.
Pear’s portfolio included names like DoorDash, Gusto, and Meme Box. The common thread; each founding team had a key insight into their customer and market that lent to their eventual success. Read on for what Kamat said about early-stage investing and what Wedding Party taught him.
What makes Pear not your typical Silicon Valley VC firm?
The magic is the level of effort that we put into working with very early stage companies. Pear is a firm that was built on years of angel investing experience. My Partner, Pejman Nozad, noticed that when he was investing, a founder would come back and say they were ready for investment from larger firms after their first year. But actually, they weren’t. They needed institutional support at the preseed and seed stage.
We don’t just spend a few weeks with our portfolio companies— we work with them actively on their first 5 hires, on their strategy, on their activating plan, etc. We stick with them. That is one of the main reasons I joined the firm.
The magic is the level of effort that we put into working with very early stage companies. @ajaykam @pearvc
There has been a trend of firms moving away from focusing on specific sectors, to becoming sector agnostic. Why is Pear sector agnostic?
At the preseed and seed stage we believe that founders know the future, and it’s on us to identify which founders can take their concept or their core IP and build a successful business around it. They may be aware of an emerging vertical that we are not.
At the preseed and seed stage we believe that founders know the future @ajaykam @pearvc
You Co-founded Micromobs in 2009, then Wedding Party (acquired by Instacart) in 2012. What are your major takeaways from founderhood?
- Who is on your team alongside you, really makes an enormous difference. I bootstrapped Wedding Party for 2 years. I understand the feeling of really needing someone to get something done. When you are building the team, an A+ person who accelerates the pace is extremely worthwhile.
- Speed. If you look at truly successful companies, you will notice their speed, how quickly they get stuff done. At Wedding Party, we thought we were working quickly, but we were not. I sat the team down, we made some structural changes, and all of a sudden, we were moving twice as fast.
- Understand your market. As a founder, if you’re going after a big market, understand the ins and outs. Talk to the old players in the space. In my experience, this is sometimes something that founders don’t do enough of.
If you look at truly successful companies, you will notice their speed, how quickly they get stuff done. @ajaykam @pearvc
What investment and/or startup trends are you excited about right now?
I think it would be cliche for me to say AI, but we’ve invested in some companies coming out of Universities working on some very strong AI technology. It will be some time before we see the benefits of that, but I am excited about what is to come. Now, almost every pitch I hear mentioned AI in some capacity.
But more than anything, we’re just looking for really passionate founders who know their space and are excited to build category defining companies.
we’re just looking for really passionate founders who know their space and are excited to build category defining companies. @ajaykam @pearvc
What portfolio companies are you thrilled about right now, and what made you decide to invest in them?
Aaptiv: An audio based fitness product covering strength training, yoga and treadmill running.
We invested in Aaptiv because we loved the founder’s key insight: When you’re at the gym, you don’t want to have to think too hard about what you have to do. That is why personal trainers exist, but they are expensive. With Aaptiv, you get an audio personal trainer. It’s a simple, key insight, and we had never thought of fitness in that way. But the customers love it.
What is one book, podcast, article, or media that you think is vital for founder to read/listen to?
Founders don’t have time to read, so I recommend Instaread: It takes NY Times best selling books and articles, and summarizes them into 10-15 minute clips. Its an excellent way to get caught up on a bunch of stuff when you don’t have time to read a full book. Founders want to be educated and stay current, but do not necessarily have the time.
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Frequently asked questions
Why is Pear VC sector agnostic?
Kamat says that at preseed and seed, founders know the future. Pear's job is to identify which founders can build a successful business around their concept or core IP.
What did Ajay Kamat learn as a founder?
Team makes an enormous difference, speed separates successful companies, and founders should understand their market by talking to the old players in the space.
What is Pear VC's portfolio?
The post names DoorDash, Gusto and Meme Box. Kamat says the common thread is a founding team with a key insight into its customer and market.
Why did Pear invest in Aaptiv?
Aaptiv is an audio fitness product that works like a personal trainer. Pear liked the founder's insight that gym-goers do not want to think hard about their workout.
