Seksom Suriyapa: From Twitter to Venture Capital - Interview

Seksom Suriyapa's Transition to Upfront Ventures

Seksom Suriyapa’s career path appeared to naturally lead toward the venture capital landscape. Having earned a law degree from Stanford University, he gained experience at prominent investment banks before moving to McAfee as a senior corporate development professional.

He subsequently spent six years with SuccessFactors, a human resources software firm, and in 2018, joined Twitter, ultimately leading their 12-member corporate development team until June of this year.

A Considered Move

Interestingly, Suriyapa’s entry into venture capital was not immediate. He explains that the determining factor was identifying a firm that aligned perfectly with his professional values. “The key was locating a firm that represented the ideal fit for me,” Suriyapa stated.

We recently spoke with Suriyapa, who continues to reside in the Bay Area, regarding his new position at Upfront Ventures, where he will collaborate with firm founder Yves Sisteron to spearhead the expansion of their growth-stage investment practice.

He also provided insights into Twitter’s current approach to acquisitions. The following conversation has been condensed for brevity.

Joining Upfront Ventures: The Genesis

TC: What prompted your decision to join Upfront Ventures?

SS: My introduction to Mark Suster, a longtime partner at the firm, occurred through a shared contact within the venture capital community. Over time, I came to greatly admire his insightful approach to business and his exceptional brand-building skills.

Many would argue that Upfront Ventures played a pivotal role in establishing Los Angeles as a significant hub for venture capital.

Upfront’s Investment Strategy

TC: Upfront has historically focused on early-stage investments, but now employs a “barbell” strategy. Will your role involve ensuring continued support for portfolio companies as they mature, and will you also be seeking investments outside of the existing portfolio?

SS: My primary objective will be to support the growth of Upfront’s existing portfolio of over one hundred companies, while simultaneously identifying and investing in new opportunities outside of the current platform. I anticipate the latter will become increasingly prevalent.

Twitter’s Acquisition Activity

TC: During your tenure, Twitter demonstrated increased activity in corporate development. What factors contributed to this shift?

SS: When I joined in 2018, Jack Dorsey had been CEO for approximately three years, and his primary focus was on strengthening Twitter’s core mission: facilitating public conversation. To achieve this, Twitter streamlined its operations, reducing its scope and workforce.

TC: I recall reports of layoffs in 2016.

SS: Consequently, there was a period of limited new product development, with no acquisitions occurring in the three years prior to my arrival. This led to a decline in the company’s acquisition capabilities. Jack Dorsey then restructured the management team, which had previously experienced frequent turnover, and I was brought in with the specific goal of revitalizing the corporate development function.

Acquisition Decisions at Twitter

TC: Twitter began acquiring companies like Scroll and Revue. Were these decisions driven by top-down directives or emerging from internal needs?

SS: The most accurate description would be that these decisions were driven by product requirements. The company had several key objectives. One was to reduce its reliance on advertising revenue, which accounts for roughly 80% of its total income.

Secondly, there was a critical need to enhance its machine learning and artificial intelligence capabilities. Identifying harmful content at scale requires machine learning, as manually reviewing vast amounts of data is impractical. Furthermore, effective machine learning is essential for delivering personalized and relevant content to users.

Jack Dorsey also envisions a future where users can communicate in their native languages, regardless of location, necessitating advanced natural language processing techniques.

Expanding Beyond Core Functionality

TC: There’s also been a focus on consumer-facing applications.

SS: That represents the third objective. Twitter is exploring tools to enhance interactions between followers and creators. The introduction of audio spaces, similar to Clubhouse, and the acquisition of Revue, a competitor to Substack, demonstrate this commitment to innovation in content creation and consumption on the platform.

Proactive or Reactive Acquisitions?

TC: Would you characterize these acquisitions as proactive or reactive?

SS: While they may appear reactive from an external perspective, we had been actively considering concepts like Spaces even before Clubhouse gained prominence. What stands out to me is that Spaces represents one of the first instances of Twitter directly competing with a company solely focused on that specific area, and doing so from day one.

Twitter’s rapid development of an Android version, fueled by dedicated resources, allowed it to surpass Clubhouse in this regard. Moreover, Twitter’s existing user base and established infrastructure provide a significant advantage in this segment.

Twitter’s extensive experience in identifying and mitigating harmful content, a crucial aspect of social media platforms, also presents a challenge for smaller companies like Clubhouse.

Exploring New Technologies

TC: Twitter has also shown interest in areas like cryptocurrencies and decentralization.

SS: While many of Twitter’s future technological priorities remain confidential, significant consideration is being given to the potential impact of cryptocurrency and related protocols. Twitter is exploring ways to participate in a decentralized internet that prioritizes user privacy and data security. It’s important to remember that Twitter is more than just a consumer app; it possesses a remarkable depth and diversity of technological capabilities.

Navigating the Regulatory Landscape

TC: Do you believe the current regulatory environment gives Twitter an advantage in acquiring companies that might have been targeted by Facebook and Google?

SS: While the regulatory environment is a factor, it’s important to note that other potential acquirers exist beyond Facebook and Google. Even when those companies were actively acquiring, Twitter was still successful in securing deals. Many companies specifically chose Twitter because they aligned with its values, admired Jack Dorsey’s leadership, and supported the positions he and his team advocated.

Leveraging Experience at Upfront

TC: You now represent a different brand. How will your experience at Twitter contribute to your success in securing deals for Upfront?

SS: I’ve cultivated a vast network of entrepreneurs worldwide through my involvement in acquisitions and investment activities. I also maintain relationships with venture capitalists who actively identify promising businesses. Furthermore, Twitter’s commitment to diversity and inclusion led to initiatives aimed at increasing representation in leadership positions, and my team actively sought out diverse acquisition targets. I also spearheaded a series of investments in emerging fund managers, including those founded by individuals from underrepresented groups.

Direct Investments and Scouting

TC: Does Twitter also make direct investments?

SS: We did make direct investments, but supporting fund managers proved to be a more effective strategy. These funds typically invest in 30 to 60 companies each. I also actively scouted companies in emerging markets, including India’s ShareChat, where I served on the board for two years. [Note: TechCrunch previously reported on Twitter’s exploration of acquiring ShareChat, which has since received substantial funding and is currently valued at nearly $3 billion.]

Competing in a Crowded Market

TC: You have a strong network, but competing for growth-stage deals will be challenging given the increased investment activity in this space. How do you plan to differentiate Upfront?

SS: I will leverage my existing network to identify potential deals, focusing on sectors where Upfront already has a presence. I will also prioritize areas of personal interest, such as the creator economy and “Web 3.0.” However, I recognize that success requires a clear value proposition. At Twitter, my strategy centered on speed, early engagement, and highlighting Twitter’s unique advantages. I am still developing my strategy for Upfront, but I will focus on identifying what entrepreneurs value that megafunds cannot offer.