Golden Keys to Unlocking Venture Capital from Touchdown Ventures CEO David Horowitz
Takeaways from my conversation with David Horowitz on MPods
Hi Everyone! Do you ever wonder who manages the venture capital war chest of Multi-Billion dollar companies like Kellogg's and T-Mobile? Today we have an exciting interview to share with you from the man who does exactly this. David Horowitz, a proud Michigan alum, is the founder and CEO of a company called Touchdown Ventures. We will cover his story, how he built his incredible firm, what he thinks young people should understand about their professional careers and his key insights into Investment Banking and the AI revolution.
Key Takeaways
Investment Banking is Excellent for Learning Market Dynamics
“I went into investment banking; It's a great place to start your career. You learn a lot about capital markets, fundraising, mergers, and acquisitions... It’s great if you want to do something in a venture capital, private equity, or really anything in the investment world.”
Learn from Early Internet History
“1998 to 2000 was kind of the groundbreaking part of the Internet, which has changed our lives. We use it every day, and I was at the beginning of that seeing some of the early companies that were going public or raising financings or getting acquired.”
Understand the AI Revolution
“AI affecting healthcare, making better clinical decisions, discovering drugs, analyzing patient data... these are things that never would have been possible before some of these new technology changes.”
Beware of Potential Bubbles
“And I know technology and AI is definitely a big thing right now, but talking with a lot of investors, they think there's more bubbles than the actual values.”
Discover Corporate Venture Capital
“For a corporate VC, it's pretty different. Instead of pooling the capital, it's just the corporation's money... There might be other objectives like thinking about the innovation or thinking about new businesses that the corporation could start.”
What is Corporate Venture Capital?
Large corporations often look towards hot, up-and-coming startups in their industry to avoid potential disruptions or pitfalls. They will also seek out strategic synergies with these startups for opening up new unique business opportunities that fit their industry goals. Many companies try to manage this internally, but fail, because they are not specialized for making good investment decisions. that’s where a CVC like Touchdown comes in. Corporate Venture Capital solves this need and has several advantages over traditional Venture Capital firms. They do not need to answer to the typical LPs (Limited Partners) in a fund, and they can simply focus on developing a cohort of investments suitable to the company’s needs, whether it be in technology, distribution, branding or other fields.
What is Touchdown Ventures?
Touchdown partners with leading corporations to manage their venture capital programs. Their team has founded or managed more corporate venture programs than anyone else—they provide professional expertise at scale to bridge the divide between big and small companies.
How are they different?
Integrated Partnership Model: Unlike traditional VC firms, which operate independently and may invest across various sectors and companies without deep integration with any, Touchdown works as a "seamless extension" of a corporation's internal team. This integration means they work hand-in-hand with corporate executives to tailor the venture capital program closely aligned with the corporation's strategic objectives.
Venture Capital as a Service: Touchdown offers what they term "Venture Capital as a Service." This service model includes helping corporations develop a strategic plan for their venture efforts, managing the ongoing activities of the CVC fund, and benchmarking against industry standards. This full-service approach is designed to handle all aspects from strategy formulation and deal flow generation to deal execution and portfolio management.
David’s Bio
David Horowitz, a visionary in the field of venture capital, embodies the spirit of innovation and mentorship. As the Founder and CEO of Touchdown Ventures, David manages corporate venture funds that integrate deeply with major corporations like Kellogg's and T-Mobile, driving not just financial returns but also substantial business impact through innovation.
Today, David is not just leading Touchdown Ventures but also shaping future leaders in venture capital at the University of Michigan’s Ross School of Business. He teaches Finance 430: Entrepreneurial Finance, focusing on the intricacies of venture capital and private equity. His mission is to impart real-world knowledge and foster a practical understanding of venture capital among students.
David’s journey began at the University of Michigan, where he graduated in 1998 with a foundation in business and finance at the Stephen M. Ross School of Business.
Post-graduation, David entered the high-stakes world of investment banking at Bear Stearns in New York. Here, he specialized in media and entertainment, gaining expertise in capital markets, mergers, and acquisitions. This experience was pivotal, as it provided him with the financial acumen necessary for his later ventures into venture capital.
Transitioning from investment banking, David joined Comcast Ventures, where he spent over a decade managing investments across various sectors. His tenure here was marked by significant achievements, including the co-founding of Genacast Ventures. At Comcast, David was instrumental in harnessing the potential of startups, nurturing them into successful enterprises.
Then in 2014, David leveraged his extensive experience to establish Touchdown Ventures, which specializes in managing venture capital for large corporations.
Throughout his career, David has maintained a clear mission: to make a tangible impact through innovation and to mentor the next generation of leaders. His work today as a lecturer and his leadership at Touchdown Ventures are a testament to his commitment to these goals. His journey from the classrooms of Michigan to the boardrooms of major venture initiatives illustrates a full-circle commitment to innovation, education, and leadership in venture capital.
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