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Gokul Rajaram's Marathon Approach to Seed Investing Yields Top Startup Deals

Gokul Rajaram, a seasoned product executive from companies like Alphabet, Meta, and DoorDash, has made a name for himself as an angel investor by focusing on what he calls a 'marathon' approach to seed investing. This strategy emphasizes the importance of the founding team, especially their ability to adapt and grow over time, rather than the initial idea itself. Rajaram's belief is that great founders can pivot and evolve their businesses to achieve success even in challenging markets. Rajaram's investment track record includes stakes in notable startups such as Deel, BetterUp, Figma, Printify, Boon, and Atlas. His experiences in leading product teams have endowed him with a robust network of experts he can connect his portfolio companies to, addressing a wide range of issues they may face. He is now set to extend his influence further by managing external capital through Marathon Management Partners, a venture capital firm focused on founders who are passionate about defining their categories. The name "Marathon Management Partners" aptly captures Rajaram’s philosophy: building a company that stands the test of time demands grit, perseverance, and endurance. According to Rajaram, authentic and deep understanding of the problem they aim to solve is crucial for founders. Instead of being swayed by impressive résumés or tenure at large corporations, he looks for individuals who have a solid grasp of the challenges they face and the solutions they offer. This pragmatic approach allows him to identify founders who are genuinely committed to their vision and capable of making informed decisions. Rajaram emphasizes the importance of a balanced founding team, one that includes both builders and sellers. Having a mix of skills ensures that the company can effectively develop its product and bring it to market. He often looks for "first-principles thinking," which involves breaking down problems to their fundamental components and building solutions from scratch. This method helps founders innovate and stay ahead in competitive markets. One of Rajaram's early investments was in Printify, a print-on-demand platform, in 2016. Despite initial skepticism from other investors, Rajaram was impressed by founder James Berdigans' depth of understanding and his knowledge of past failures in the industry. Berdigans’ company later merged with Printful, a significant milestone that validated Rajaram's investment approach. Rajaram offers generous support to founders, sharing insights on product development, company culture, and strategy through his website. He acknowledges the competitive nature of seed investing but remains disciplined, avoiding the fear of missing out (FOMO) and ensuring thorough diligence before committing funds. In recent years, as the seed investment landscape has become increasingly fast-paced, Rajaram has maintained a cautious stance. While some rounds have moved quickly without proper vetting, he believes that being thoughtful and selective is key to long-term success. "Rounds were moving really fast, happening without any diligence," he observed. "You've got to be very thoughtful. I might miss a few great companies, but a lot will flame out." Angel investing, Rajaram notes, often involves backing ideas with a high failure rate. However, he remains patient, recognizing that even successful companies can take over a decade to generate substantial returns. "If you focus too much on the financial returns, you'll be disappointed," he advises. "You're truly planting a seed." Rajaram’s perspective is highly valued in the tech industry. His approach combines a deep understanding of product development with a focus on human capital and the endurance required to build lasting companies. Marathon Management Partners is poised to leverage this expertise to support and nurture a new generation of innovative founders. Evaluation and Additional Information: Industry insiders commend Rajaram's focus on the founder's capabilities and authenticity, describing it as a refreshing and effective approach in a field often dominated by short-term thinking and hype. His ability to connect founders with a network of experienced professionals is seen as a unique advantage, enabling startups to navigate critical challenges more effectively. Marathon Management Partners, founded on these principles, aims to cultivate a portfolio of companies that can redefine their respective industries, driven by the vision and tenacity of their founders.

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