Xoogler.co: Q&A With Michael Ma, Co-Founder of Liquid 2 Ventures

On Tuesday November 18, Xoogler.co featured a Q&A with Michael Ma, co-founder of Liquid 2 Ventures. Michael has been very helpful to the community through helping Xooglers get into Y Combinator, giving advice as an early stage investor, and sharing insights in startups in this Q&A. The talk was moderated by Qasar Younis, Michael’s co-founder of TalkBin and co-founder/CEO of Applied Intuition (recently valued at $1.25B).

Michael’s Background

When Michael graduated from Yale in 2009, he became a Senior Business Analyst at Sears Holding Corporation. In 2010, he left to found Talkbin with Qasar. They went through Y Combinator with Talkbin, which was ultimately acquired by Google in 2001. Michael spent two years at Google as the product manager for Google My Business mobile, and then went to Harvard for an MBA. In 2015, Michael founded Liquid 2 Ventures with Joe Montana and Mike Miller where he is a general partner today. Liquid 2 Ventures is a seed fund that has backed companies such as GitLab, Rappi, Applied Intuition, and Retool.

Q&A Takeaways

• Things you perceive as negative often turn out to be positive. Michael reflected on how he had applied for other jobs out of college but joined Sears as a business analyst after failing to get an investment banking role. He learned a lot there and met Qasar, which led to the creation of TalkBin.
• Founders always want to start something. Michael said that he started Talkbin to solve a problem, but if they did not start Talkbin, he would have started something else. When asked about how founders can justify leaving safe, well compensated roles at companies like Google, Michael said they do not have to be convinced. Founders already have the passion to start something.
• There is a blurred line between being motivated or being delusional. Michael said he does not know the exact point of being delusional, because all good founders have a little bit of delusion. He said that as an investor, a good way to know is to set goals and monitor results. A delusional founder will come up with continuous excuses when they don’t hit goals. As an investor, Michael understands that it is important to be patient, but there comes a time when a line must be drawn.
• Founders should talk to as many VCs as possible and see who they get along with. Have the VC firm reverse pitch you to see why they want you.
• Know when to take VC advice and when not to. VCs have expertise in particular processes such as early round fundraising. They may not be as helpful for advice out of their experience. For instance, if you are a healthcare company looking to get FDA approval, your VC firm may not be as helpful. Know the firm’s background and where they are experts.
• Have a customer product focus. Michael said if you get that right, everything else follows. Be sure to talk to your customers. They can tell you more about the future of your company than your VC can.
• Good co-founders compliment each other. There is a sense that these people will go the distance. They may have to pivot, but they will do what they have to do to succeed.
• Michael’s biggest lesson from Y Combinator is the sense of urgency and speed that Talkbin was surrounded by. It is an experience that is difficult to replicate. He also said to apply to Y Combinator if you want best in class coaching. It’s not for everyone but can be the most impactful check you take.

Thank you Michael and Qasar! Be sure to keep an eye out for future events in our monthly Xoogler Newsletter and Linkedin!