Billionaire venture capitalist Walter Kortschak shares his investing insights and experiences in a recent interview with Forbes. Kortschak, who made his fortune from 40 years of technology bets, emphasizes the importance of duration and persistence in investing. He credits his success to his ability to navigate the early-stage, growth equity, and private equity sectors consistently over the years. Kortschak’s assets are estimated at $1.6 billion, thanks to his tenure at growth equity firm Summit Partners and personal early-stage investments that paid off big.
Kortschak’s background includes a childhood raised in Geneva and a career as a software engineer before transitioning to venture capital. He joined Summit Partners in 1989 and made a name for himself with successful investments in tech companies like McAfee, E-Tek Dynamics, and Xylan. During his two-decade tenure at Summit, Kortschak earned a spot on Forbes’ Midas List of the world’s best venture capital investors from 2005 to 2009. He later left his active role at Summit in 2010 and became an advisor.
After leaving Summit, Kortschak went solo and returned to early-stage investing through his personal vehicles, Firestreak Ventures and Kortschak Investments. He was an early investor in now-public companies like The Trade Desk, Lyft, Palantir, Robinhood, and Twitter. In addition, Kortschak is making AI bets with stakes in companies like OpenAI and Anthropic. He emphasizes the importance of being selective in AI investments and avoiding the mass hysteria surrounding the sector.
When asked about his greatest triumph as an investor, Kortschak points to his investment in E-Tek Dynamics at Summit Partners, which resulted in a 40x return on investment and a 350% IRR. He also highlights his success as a strategic angel investor in The Trade Desk, which has seen significant growth since its IPO. Kortschak also shares a lesson learned from a disappointing investment where a company raised too much capital and ultimately shut down.
In terms of advice for fellow investors, Kortschak warns against FOMO (fear of missing out) and urges investors to be patient and disciplined in their approach. He recommends the books “Bad Blood” by John Carreyrou and “The Innovator’s Dilemma” by Clayton Christensen as must-reads for investors. Kortschak’s vast experience and success in the venture capital industry provide valuable insights for investors looking to navigate the ever-changing landscape of technology investments.
