Time for Change
I've been struggling with what to write in this post for weeks so I'm just going to come out and say it, I am leaving the venture capital business.
I have been a VC for eight years... 8 long years that flew by in a blink. We did 73 direct equity deals, returned a boatload of cash to the company, invested in some amazing teams, lost my ass on a few deals, regretted making a couple of investments, glad I didn't do many deals I saw, kick myself for not doing others. In short, it's been a great ride.
Earlier this year I started feeling a strong urge to do something different. I missed having direct operational control and I missed the sense of accomplishment that comes from successfully executing direct operational control, and quite honestly, all of the venture deals I was looking at started to look the same. I missed having a team. I was also concerned that my experience in operating roles in enterprise software was becoming dated and perhaps not as relevant to the state that the business is in today; it's one thing to spend 4 hours in a board meeting talking about a business, it's another thing altogether to actually do it.
What I was conflicted about is the notion that I had spent a long time cultivating relationships that resulted in good quality deal flow, and lately I was seeing some pretty cool deals (at least inasmuch as any enterprise software deal can be called cool.) I really felt that I was hitting a stride but in the end it just wasn't powerful enough for me to stay.
I thought about leaving home and sharking my way up at another venture firm, but the simple fact is that I have too much affection for SAP as a company to leave, and a boundless sense of loyalty that comes from the fact that Hasso Plattner hired me (Howard Lau hired me and we worked for Hasso up until a few years ago when Hasso took his role on the Supervisory Board) and was very generous over the years in protecting Ventures from those who wanted to get a bite at the apple and rewarding me for my work. Loyalty to people matters in any pursuit in life, you just can't take it lightly.
I was presented with an opportunity to lead a team working with people I really admire and respect on a set of challenges that are of pre-eminent importance to SAP. In short, the more I looked at this the more I found myself thinking in the role, I was hooked big time.
That's it really, as of 10/15 I was no longer a part of SAP Ventures. I really enjoyed my partners and consider all of them friends as much as colleagues. Lisa, Paul, Martina, and Jen will continue on and replace me, after all everyone is replaceable and I really do hope that by regenerating and refreshing the partnership that they will come out stronger. I'll post another day on what my new role is, but if you have noticed my sharper edge on commentary about Oracle you will not be surprised to learn about it, and some of the other downstream things that result from this change, such as what I'm going to do my blog now that I'm not a VC anymore (will continue but with a new sense of direction).
The best of luck with your new direction.
I have enjoyed reading your blog and look forward to reading your new blog with your new focus
Posted by: Estelle | Oct 27, 2005 at 04:45 PM
So long Bro! And congratulations for the decision to make a change, we have to do that every now and then.
PS: As you told me in NY, that post has been hard to get out of your chest :-P.
Posted by: Jeff Clavier | Oct 27, 2005 at 06:08 PM
Jeff,
I think you are best blogger on the net. Best analytical mind, focused, and to the point. I wish I could express as well as you could. VC world will miss a great one. Good luck in your new position.
PS: I did not forget about beta account request. Product is not ready yet.
-Ramana
Posted by: Ramana Kovi | Oct 27, 2005 at 07:40 PM
Jeff,
You are a good man. The new team is lucky to have you for sure. New adventures are good.
Posted by: Steve Shu | Oct 27, 2005 at 08:35 PM
I'm guessing you'll have even less time to play video games! I second the best blogger comment, and look forward to more from you, as always. I actually find curmudgeons most amusing :-)
Posted by: Valerie | Oct 27, 2005 at 09:36 PM
Jeff,
best wishes for your new job. Glad to see you're staying with SAP, can't wait to hear what you'll be doing!
Posted by: Frank Koehntopp | Oct 27, 2005 at 09:58 PM
God Luck Jeff!
One door closes and another one opens.
Posted by: Daniel Nerezov | Oct 28, 2005 at 02:22 AM
Hi Jeff
Best of luck in the new gig
Hopefully you can still share your insights on technology, VC, etc
Best regards
Fergus
Posted by: Fergus Burns | Oct 28, 2005 at 06:57 AM
Jeff:
wishing you only the best. Your blog is one of my favorites and I hope you will keep it going.
It was great meeting you at DEMO last year. You bought the round so I still owe you one.
By the way, did you get that new Vette you blogged about a few months ago?
Hope to see you again.
David
Posted by: David Silverman | Oct 28, 2005 at 08:05 AM
Best of luck in your new role! And don't forget to keep blogging even though it'll probably be harder in a line ops job...
Barry
Posted by: Barry | Oct 28, 2005 at 08:49 AM
"When you least expect it..."
Amazing and congratulations on the jump, from your #1 blog fan.
Posted by: Nick Gray | Oct 28, 2005 at 08:56 AM
Best of luck Jeff ...
Posted by: Gopi | Oct 28, 2005 at 09:32 AM
Jeff,
Best of luck....I met you way back when and it was probably one of the deals you have been kicking yourself on (me too, btw).
Enjoyed your insights and I hope you continue to blog.
jc
Posted by: Jim Clifton | Oct 28, 2005 at 10:11 AM
Jeff,
Thank you so much for sharing this with us! Congratulations!! All the best to you!!!
Life is an adventure - a journey, not a destination - and this sounds like a wonderful change of scenery!
I'm super happy for you and can't wait to read more in the coming weeks and months!
Again, all the best to you!!!
Jon
Posted by: Jon Strande | Oct 28, 2005 at 11:50 AM
Sounds like exciting times for you Jeff.
I hope you'll still find some time to BS with us VCs!
Posted by: Michael Jung | Oct 28, 2005 at 12:01 PM
Sounds like exciting times for you Jeff.
I hope you'll still find some time to BS with us VCs!
Posted by: Michael Jung | Oct 28, 2005 at 12:02 PM
Jeff, Best Wishes on your responsibility. Do stay regular in the blogging circuit
Posted by: Sadagopan | Oct 28, 2005 at 02:18 PM
Best wishes for you and your family as you make this transition. Hope to meet you in person one day in the future. Your thoughts will be missed I am sure. jerry
Posted by: jerry r mitchell | Oct 28, 2005 at 02:49 PM
Best wishes for you and your family as you make this transition. Hope to meet you in person one day in the future. Your thoughts will be missed I am sure. jerry
Posted by: jerry r mitchell | Oct 28, 2005 at 02:50 PM
Good luck - have definitely enjoyed your blog - even if you did post rumors about OAT ;-)
Karl
PS - must be that time of year, but I also am moving on from the crazy RFID world. Will let you know where I end up.
Posted by: Karl Waldman | Oct 29, 2005 at 07:49 AM
I hope you'll keep blogging as I enjoy your take on things - but change is (usually) good.
Posted by: Barnaby James | Oct 30, 2005 at 08:33 PM
Jeff,
best VC blog leaves the VC business....but hope you'll stay such a committed and excellent blogger.
Posted by: TJ | Oct 31, 2005 at 07:46 PM
Good luck Jeff!
Posted by: Dragos | Nov 01, 2005 at 10:32 AM