Scribble Ventures: The Power of Networks in Venture Capital

Scribble Ventures' Success Rooted in Robust Networking

Amidst a proliferation of new venture funds contending with a challenging exit environment, Scribble Ventures, led by Elizabeth Weil, exemplifies the critical role of established and extensive professional connections.

In contrast to the current industry contraction impacting many newer firms, Weil has successfully secured $80 million for Scribble’s third fund – representing the firm’s largest capital raise to date.

Weil's Background and Fundraising

This achievement demonstrates significant market trust in Weil, a Stanford alumna with a distinguished career. Her experience includes roles as a partner at Andreessen Horowitz, leadership in corporate development at Twitter (now X), and positions at prominent Silicon Valley firms like IVP and Menlo Ventures.

Weil shared that raising this fund was anticipated to be difficult, yet the firm ultimately surpassed its $75 million hard cap after a three-week extension of the fundraising period.

A Challenging Venture Capital Landscape

Scribble’s success is particularly noteworthy given the current state of the venture capital industry. Many newer managers, having emerged during the 2020-2021 funding surge, are now facing scrutiny due to a lack of demonstrated returns to investors.

Realizing returns is an essential component of venture capital, as Weil points out. She notes that numerous emerging managers have yet to navigate the process of distributing proceeds.

The "Scribble Network" – A Key Differentiator

What distinguishes Scribble Ventures is its “Scribble Network,” a deliberately built network of experienced operators and executives. These individuals contribute not only deal flow and thorough due diligence but also co-invest with the firm.

Notable members of this network include Maggie Hott, leading go-to-market strategy at OpenAI; Jim Everingham, VP of Engineering at Meta; and Sheila Vashee, CMO of Figma.

Leveraging Combined Expertise

Kevin Weil, Elizabeth’s husband, further strengthens the firm’s network. As chief product officer at OpenAI and a board member at Cisco, his technical and product insights complement Elizabeth’s investment and corporate development expertise.

“We facilitate introductions between our founders and members of our network,” Weil explains. The ability to directly connect with influential figures is a significant benefit for portfolio companies.

Successful Investments and Portfolio

This approach has enabled Scribble to make promising early investments in companies such as Whatnot, a live auction platform valued at almost $5 billion; Atmo, an AI-powered weather forecasting company founded by former Google employees; and Poolside.ai, a Paris-based generative AI firm previously valued at $3 billion.

Scribble’s portfolio also includes investments in SpaceX and Figma, bringing the firm’s total assets under management to $216 million.

Investment Strategy and Fund Performance

Scribble typically invests between $750,000 and $1.5 million, prioritizing collaborative relationships with other investors over strict ownership requirements.

Weil believes that imposing rigid ownership thresholds early in a relationship can be counterproductive.

The firm’s inaugural fund, established in 2020, is already demonstrating strong performance, achieving a 4x multiple, partly due to early distributions from cryptocurrency investments in Mysten and Aptos.

Opportunities in the Age of AI

With the transformative impact of AI on the startup ecosystem, Weil believes this presents an ideal moment to leverage Scribble’s collaborative investment strategy.

“While it’s an excellent time to launch a startup, it’s also incredibly challenging due to the high level of competition,” she stated. “Achieving product-market fit and effective go-to-market strategies are more difficult than ever.”

Pictured above, from left to right, the Scribble Ventures team, including Christen O’Brien (operating partner); John Smothers (partner); Elizabeth Weil; and Kevin Weil (operator-in-residence).