Molly Alter, Partner (Northzone), $4B AUM | Software for Hardware, EU vs USA, Vertical AI, VC Biases

Molly O'Shea talks to Molly Alter, Partner at Northzone, a $1.2 billion fund with around $4 billion AUM and discusses her successful investments (Frame.io’s $1.2B exit to Adobe), founder qualities, VC biases and decision-making, as well as the firm's global approach to identifying opportunities.

Alter believes in the potential of Europe's tech ecosystem, citing higher net IRR for European VC funds compared to North American ones over 10-15 year horizons. She shares perspectives on US and European VC landscapes, successful investments, and emerging opportunities in vertical AI and software for hardware.

Focusing on meritocracy and founder-friendliness with a balanced approach between US and European investments, Alter also explains why she's bullish on workflow SaaS and vertical AI, despite changing market conditions and valuation multiples.

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Follow on Twitter https://x.com/MollySOShea

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Check out Northzone: https://northzone.com/

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Sponsor: Archer

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Companies mentioned:

Frame.io - https://frame.io/

Glia - https://www.glia.com/

Wayve - https://wayve.ai/

Spotify - https://www.spotify.com/

Klarna - https://www.klarna.com/

Spring Health - https://www.springhealth.com/

Adobe - https://www.adobe.com/

Mistral AI - https://mistral.ai/

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TIMESTAMPS:

(00:00) Intro and Preview

(03:07) Molly Alter’s Career Journey

(07:26) Insights from Working in Different VC Firms

(11:38) Investment Focus and Thesis

(14:13) Sponsor: Archer

(15:28) Impactful Investments: Frame.io and Glia

(18:54) Qualities of World-Class CEOs and Founders

(22:17) Northzone: History, Strategy, and Values

(26:06) Global Reach and US-Europe Investment Split

(29:13) Defending European Tech Ecosystem

(32:27) Innovation from Restrictions in Europe

(35:35) Software for Hardware: Opportunities and Challenges

(42:08) Specific Areas of Interest in Software for Hardware

(45:05) The Future of SaaS and Hybrid SaaS Models

(47:30) Example of Hybrid SaaS: GovDash

(50:26) Wrap

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