Kate Mitchell
Co-founder & Partner, Scale Venture Partners
 

Background: 
 
In 2000, Kate co-founded Scale, a Silicon Valley-based firm investing in early-stage startups building intelligent business software. Since then, she and the Scale team have backed successful, high-growth companies including Hubspot (NYSE: HUBS); DocuSign (NASDAQ: DOCU), and Bill.com (NYSE: BILL). Kate continues to manage the older vintage funds and has handed the reins to the next generation of leaders in the partnership.  Her goal when founding Scale was to build a firm that would last for generations of investors – something she is proud to see. 

Kate became a VC in 1997 joining the predecessor firm to Scale.  Prior to venture, she led product development for Bank of America’s Internet Banking Division delivering the first online banking service in the U.S. Given her education in computer science and finance, she previously held operating positions that put the knowledge of both to work, deploying technology to solve business problems.
 
After founding Scale, Kate became Chair and board member of the National Venture Capital Association (NVCA) and co-authored the IPO section of the 2012 Federal JOBS Act increasing access to public markets for startups. She also co-founded the west coast chapter of PE WIN (PE Women Investor Network) where she is Vice-Chair. Kate co-founded NVCA’s initiative, VentureForward, which focuses on advancing opportunities for women and underrepresented minorities in the venture ecosystem. 

Kate currently serves on the boards of SVB Financial Group (NASDAQ: SIVB), Fortive Corporation (NYSE: FTV), Silicon Valley Community Foundation (SVCF), NVCA’s Venture Forward, PEWIN, and the Steering Committee for IADEI.org. She also serves on the investment committees for the SVCF and SFMOMA endowments. Kate is an active Kauffman Fellows Mentor.
 

What inspired you to make the jump to investing and found your own firm?  
 
I took the leap into venture capital in 1997. I was introduced to the opportunities in private markets when I sold ~$2B in distressed assets to private investors. My husband, meanwhile, was working at Apple Computer which exposed me to how radically technology could change our lives at home and work. Living in Silicon Valley, I became intrigued about entrepreneurship – where innovation and growth are prized more than sheer size. Venture capital was a perfect mix - allowing me to grow in new directions while building on the enterprise tech skills I already had.
 
What pushed us to found Scale in 2000 was that our predecessor firm - while a good place to learn - lacked an investing thesis and the culture we believed was essential to succeed in an increasingly competitive venture market. At Scale, we built a collaborative culture focused on deploying technology solutions into the business market.  That culture and thesis still holds true today and has attracted the next generation of leaders and LPs to Scale which is investing our latest $900 million Fund VIII. 
 

What do you find most rewarding / most challenging about your current role? 
 
The rewarding and addictive aspect of venture is growth – in portfolio companies, teams, and yourself.  The innovation economy challenges us to see things in new ways. If you like solving problems with imperfect information, venture is intellectually fascinating. A constant brainteaser. And venture is all about people.  We help visionary entrepreneurs optimize their path to success. That interaction and seeing the alchemy when great teams hit the mark is incredibly exciting. 
 
Venture is a high-risk high-reward asset class and isn’t short on challenges, one of which is the long feedback cycle.  Each company takes 10 years to mature plus your losers show early, so it takes years to know whether your investment decisions were good ones. You have to expect and accept failure in your portfolio.  It is important to you and your firm’s track record that you identify low performers early so that most of your capital, and time, ends up invested in the deals which will return the fund.  
 

What skills do you believe are valuable to success within investing?
 
While venture investing rides on tech trends, the best investors are also disciplined.  We have an informed point of view about end markets ripe for change. We do deep due diligence, particularly on the founding teams and with customers they aim to serve.  At Scale, we model our financial thesis for the milestones, capital and returns we need for a deal to be compelling enough to add to our portfolio. 
 
The best VCs are driven by a curiosity about technology, dynamic markets, and people.  Innovation relies on change so requires constant learning. What worked in the past gets disrupted in the future. You have to believe in new uses, new markets and new customers so come to venture with an informed but open mind.
 
 
What advice would you share for women early on in an investing career? 
 
Understand what makes you uniquely suited for venture investing. What sector or skill gives you better insight into markets ripe for change? What unique work experience or network makes you valuable to a company founder? Early entrants often start by emulating models of success versus forging a path based on what they uniquely bring to the table.
 
Think like an athlete. Develop and nurture your sense of self-confidence and be authentic to who you are. Couple that with a commitment to becoming excellent at your craft.  Be willing to take more risks and learn from your setbacks.  Failure and learning from it is how we hone our skills.  It requires passion about moving forward while also being objective about how you can always improve.  Venture has the widest dispersion of results within private equity, so you have to become excellent at what you do.  
 

You’ve been a big champion for greater equity and diversity in VC - what were some challenges you had to overcome? 
 
I was usually the only woman at the board table.  Rather than being distracted about my gender, I focused on how I could deliver value to this deal and generate cash returns to our fund. A common experience is that women are not heard in a meeting.  Instead of competing for airtime, my target was to be the most trusted board member the CEO called on Sundays for advice.  
 
As I went through my career, I became aware that my being in the room was a sign that “success could wear a dress” - a female VC could be herself and deliver returns.  Once I had the gravitas that comes with success, I began re-investing my “capital” into changing the gender, racial and ethnic composition of the industry.  
 
The goal of increasing diversity across the venture ecosystem is what drives me today. I am proud of the impact Venture Forward has had in educating the next generation of successful, diverse investors. I am thrilled to see women, like the Synergist and PE WIN members, help each other thrive and learn.
 

Where do you feel the industry is in terms of female support at the top? 
 
Female leadership is “emerging.”  There are more female partners than when I joined the industry, but at 16% of investing partners, we have a long way to go. The statistics are far worse for Black and Latinx investors at only 3% and 4% of investing partners. 
 
It is important that leadership around diversity is no longer limited to those it impacts directly.  White male leaders are joining us in advocating for change. My peers are coaching and/or investing in diverse emerging managers. That drive is echoed by our limited partners who understand that diverse teams increase the potential for success and are pressing managing partners on their hiring and promotion practices.     
 

What is your advice for balancing personal life with work? 
 
Venture capital is demanding. Founders work long hours, and the business requires travel and networking events. Achieving a comfortable work-life balance isn’t easy. Your family will get to know the names of your CEOs and co-investors. But it is not a career that requires sitting at your desk.  Given how fluid the workweek is, you can be creative about carving out time for yourself, and for friends and family. Venture is like a marathon. You will perform your best if you are rested and in good physical and mental shape.  Invest in yourself first so you are equipped to become a great investor…and can enjoy the journey. 
 

Any favorite books, podcasts, or shows that you would recommend? 
 
I love the Financial Times with its global view of business, politics, and culture.  The writing amazes me with its conciseness. The podcast I am addicted to is Morgan Stanley’s “Thoughts on the Market.”  The daily updates are brief and cover specific topics across the broad investment market we fit into.  Last, cementing my news-junkie status, my most-watched show is the PBS NewsHour with Judy Woodruff.  The news is timely, fact-based, and in-depth. The coverage spans the globe and includes cultural and social issues.  And it doesn’t hurt that the anchor is a female leader I admire! 
 

Thank you for your time Kate! To learn more about Scale Venture Partners check out https://www.scalevp.com/