Read the full conversation, here.
In a VatorNews interview, SC Moatti, Founding Managing Partner of Mighty Capital, delves into the firm's unique philosophy and methodology. Mighty Capital distinguishes itself by engaging with over 30% of global product managers through its exclusive 501(c)3 partner Products That Count, where Moatti serves as Founder and Chair. This vast network serves as a prolific source of deal flow, as evidenced by annual product awards where product managers nominate outstanding products, resulting in eight out of 10 portfolio companies being discovered this way. The engagement with product managers continues through trend reports, podcasts, and roundtables, creating a symbiotic relationship. Mighty Capital's approach stands out not only in deal sourcing but also in portfolio value enhancement. The firm leverages its extensive network to provide portfolio companies with awards, podcast features, and curated roundtables, leading to accelerated sales cycles, increased revenue, and strategic business expansions. Moatti emphasizes the tangible impact this approach has on the growth and success of their portfolio companies.
Mighty Capital's commitment to catalyzing meaningful investments is emphasized, with Moatti critiquing inefficiencies and greed prevalent in traditional venture capital. The firm's primary investment focus centers on Series A investments in the U.S., particularly in B2B tech. Moatti articulates the sweet spot for Mighty Capital, targeting areas that benefit from the extensive network of product managers. Moatti underscores the importance of unique products, robust teams, and a strategic focus on distribution and partnerships for successful investments. AI's role in Mighty Capital's portfolio is highlighted, reflecting Moatti's early recognition of trends through constant engagement with product managers. She notes the shift from AI experimentation to a focus on data governance and productizing data in 2024, identifying opportunities in specific, high-quality datasets integrated with distribution partners. Macro trends include productivity enhancements, innovation and digital transformation efficiencies, security and privacy concerns, data governance, disruptions in the SaaS industry, infrastructure opportunities, and sustainability challenges posed by AI's environmental impact.
Moatti acknowledges the uncertainty of predicting the market landscape in a decade. Instead, she focuses on building relationships with Chief Product Officers at Fortune 1000 companies, allowing Mighty Capital to foster connections between its portfolio companies and potential acquirers when the time comes. The emphasis remains on maximizing opportunities rather than predicting the end game. Moatti comments on the evolving funding environment, noting that while valuations have come down, the current crop of seed-stage companies is poised to thrive due to their capital-efficient mindset and innovative product-led go-to-market strategies. She anticipates that Series A investments in 2024 and beyond will benefit from these companies' ability to navigate the new enterprise sales landscape. Moatti's perspective underscores Mighty Capital's commitment to sustainable growth, value-driven partnerships, and adaptability in the ever-evolving venture capital landscape.