Renegade Partners co-founders Renata Quintini and Rosanne Winczek have seen it all in their careers, but over the past four years they've not only launched their first fund during the COVID-19 pandemic but have also weathered the economic rollercoaster that followed.
Now, with plans to launch their second $128 million fund and write checks of up to $10 million to 20 startups, Quintini and Wincek spoke with TechCrunch editor Kirsten Korosec on Equity about the early days of their first fund, what they look for in startups, and what's driving the move away from megafunds.
Quintini and Winczek recalled a moment of pressure for their first fund, which the venture capital firm closed in March 2020, just days before stay-at-home orders were issued.
“For a while, we joked that we had to build our house in quicksand,” Quintini joked, “but then the tech market started to recover toward the end of the year and things normalized. Then the bull market came along and the pendulum swung the other way. 2021 is a whole different story.”
Despite the volatility, the duo hasn't changed their investment philosophy, which they said starts with figuring out exactly what will create real value over the long term.
From there, Renegade chose to invest its first fund in cycles to insulate it from market fluctuations, prioritizing diversification and seeking out what it calls “durable businesses.”
“When the music stops, who's in the chair?” Quintini asked, before answering: “An enduring business in a market that matters.”
Winsec noted that this strategy is continuing in the second fund.
“You can't time the market, you know? So the only thing you can do is be consistent,” Wincek said, adding that he also looks for exogenous changes in the market that won't go away.
One recent change they noted in the podcast is the industry-wide trend away from mega funds in favor of smaller and mid-sized funds.
“Frankly, these platforms are looking less like venture firms and more like BlackRock,” Winczek said. “And that's OK. There was an opportunity in the market to build one.” He then added, “Smart founders understand that there are very different products sold by small, specialized venture firms and those sold by large platforms.”
Both have noticed an increase in smaller funds run by the top general partners of these big platforms who want to launch traditional venture firms and strike out on their own.
Equity is TechCrunch's flagship podcast, produced by Theresa Loconsolo and posted every Wednesday and Friday. Subscribe on Apple Podcasts, Overcast, Spotify and allcasts.
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