Episode #375: Investment Strategies for a Tech-Driven Future with Leo Polovets

Crazy Wisdom

In this episode of the Crazy Wisdom Podcast, host Stewart Alsop welcomes guest Leo Polovets, General Partner at Susa Ventures and Humba Ventures. The discussion covers the shifting landscape of investment from software to hard tech and deep tech, advancements in robotics and AI, and the evolution of Humba Ventures. Leo shares his insights on being an opportunistic investor, the importance of the physical world in tech innovations, and his journey from engineering to investing. He also highlights exciting projects like DeepChecks, which connects deep tech founders with investors. Check DeepChecks' website to learn more.

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Timestamps

00:00 Welcome and introduction, discussing Leo Polovets's background and the topic of AI's impact on software and investment shifts to hard tech and deep tech.

05:00 Exploration of hardware and bio labs, space factories, new materials, and other deep tech categories; the importance of the physical world in these technologies.

10:00 Leo's transition from engineering to investing, learning through investing, and applying an engineering mindset to business and investment decisions.

15:00 Discussion on the evolution of Humba Ventures, experimental fund beginnings, and focus on deep tech and American dynamism sectors.

20:00 Insights into investment approaches: thesis-driven vs. opportunistic, and Leo's preference for a serendipitous and opportunistic investment style.

25:00 Challenges and opportunities in the chip industry, including labor practices and supply chain dependencies, and the potential of robotics and AI in various applications.

30:00 The intersection of robotics and AI, rapid advancements in robotics capabilities, and the role of efficiency and learning in factory automation.

35:00 Further discussion on robotics, examples of robots learning tasks quickly, and the potential impact of advanced robotics on various industries.

40:00 The importance of understanding investment sectors, managing the tension between knowledge depth and investment opportunities, and the role of serendipity in discovering new areas.

45:00 The significance of Miami as a tech hub, its role in connecting the US and Latin America, and the dynamics of the startup scene in different regions.

50:00 Leo's excitement about current projects, such as DeepChecks, and the benefits of having a community for deep tech founders to pitch their ideas to investors.

55:00 Closing thoughts on investing, learning from founders, and the continuous evolution of technology and investment landscapes.

Key Insights

1. Investment Shift to Deep Tech: Leo Polovets highlights a significant shift in the investment landscape from software-centric ventures to deep tech and hard tech sectors. This transition is driven by the maturation of software, reduced barriers to entry, and the growing potential of physical-world technologies like hardware, bio labs, and advanced materials.

2. Serendipitous vs. Thematic Investing: Leo contrasts thematic, thesis-driven investing with his preferred approach of serendipitous, opportunistic investing. He emphasizes the importance of being open to discovering new opportunities through conversations with founders and exploring emerging trends without rigidly adhering to predefined investment themes.

3. AI's Impact on Knowledge Work: The discussion explores how AI, particularly generative AI models, is revolutionizing knowledge work by automating complex tasks and enhancing productivity. Leo mentions the potential of AI to speed up regulatory processes, improve design efficiency, and transform industries like protein design and material science.

4. Evolution of Humba Ventures: Leo shares the evolution of Humba Ventures, which began as an experimental fund to explore new investment categories beyond Susa Ventures' traditional focus. Over time, it has become a dedicated deep tech and American dynamism fund, targeting sectors with significant engineering and scientific challenges.

5. Robotics Advancements: Robotics is identified as a rapidly advancing field, with significant improvements in robots' learning capabilities. Leo explains how modern robots can quickly adapt to new tasks, contrasting the efficiency-focused automation in factories with the emerging trend of versatile, learning-oriented robots for more dynamic environments.

6. Miami as a Tech Hub: The conversation touches on Miami's growing role as a tech hub, particularly for remote companies and those connected to Latin America. While it may not rival traditional tech centers like San Francisco or New York in terms of engineering talent, Miami offers unique advantages for certain industries and demographics.

7. DeepChecks Community: Leo introduces DeepChecks, a project aimed at connecting deep tech founders with investors. This initiative provides a platform for founders to submit their pitches and gain visibility among a curated group of angel investors and venture capitalists, fostering collaboration and investment in groundbreaking technologies.