Investor Office Hours w/ Level Up Ventures & Earthling VC

The Spaces brought together two investor office-hour sessions: first with Damian Murray of Level Up Ventures (the venture arm associated with Hearst), then with Aryan of Earthling VC. Damian detailed a transparent sourcing and diligence flow (online submission, staged calls, quick, empathetic feedback) and a shift away from pure traction toward product/technology differentiation, defensibility, data advantage, and strong technical leadership paired with domain expertise (e.g., Green Shoe automating SEC filings). He outlined value-add via Hearst’s 300+ businesses, functional expertise, and a global scout network, emphasizing they operate like a traditional, returns-driven VC. Founders delivered one-minute pitches and received tactical advice on concise pitching, open-source GTM alignment, narrowing ICPs, and focusing on execution over fear of copying. In session two, Aryan shared Earthling VC’s thesis: first/second checks into “weird, fringe” new-computing plays, evaluated qualitatively at inception by speed of execution, resourcefulness, unique insight, and obsessive commitment. He stressed targeting mission- and stage-aligned investors, warm intros, outreach that highlights why the founder is exceptional, and not over-optimizing for a pre-seed “lead” when raising on SAFEs. Additional guidance covered enterprise sales hustle, deep-tech commercialization risks, and hardware fundraising realities (cheaper prototyping, demand-driven round sizing).

Investor Office Hours: Insights from Level Ventures (Damian J. Murray) and Earthling VC (Aryan)

Participants and Context

• Host: Daryl (organizer of weekly Investor Office Hours; moderates pitches on X/Twitter Spaces and Chatter Social).
• Guest VC 1: Damian J. Murray (Level Ventures; affiliated with Hearst). Often referenced as providing empathetic, structured feedback and operating like a traditional, returns-driven VC rather than a corporate strategic.
• Guest VC 2: Aryan (Earthling VC). Early-stage fund focused on frontier computing and hardware; ex-AI/AR engineer at Meta/Oculus.
• Community support: Leah and the Chatter team co-moderate; occasional technical issues noted during cross-platform simulcast.

Session 1: Level Ventures (Damian J. Murray)

Sourcing and Diligence Process

• Open sourcing channels:
  • Team-wide sourcing (MD, SVP, senior analyst channels).
  • Online application: founders can submit via Level Ventures’ website (levelventures.com; transcript mentions “level of ventures.com”).
• Multi-step review:
  • First intro call.
  • Subsequent rounds with the Managing Director and others (“so on and so forth”).
• Speed and empathy:
  • Emphasis on quick, accurate feedback so founders know where they stand.
  • “Passing with grace” is a cultural norm; clear reasons for pass decisions.

Assessment Criteria: Product Over Traction

• Less traction-centric than before:
  • Early traction can be misleading, especially where corporates pilot many products.
• Product and technology stack differentiation:
  • Depth of tech, improvement trajectory, ability to retain a lead.
  • Data strategy and proprietary systems are key.
• Market awareness:
  • Competitive landscape; speed of competitors; clarity of differentiation.
• Team:
  • Domain expertise plus strong technical leadership (CTO or creative alternative like a Chief Product Officer with an engineering bench).
  • Teams increasingly add Chief Product Officers; still, technical capability is “critically important” in AI-driven startups.

Sector Focus and Examples

• Excited domains: fintech and healthtech (rapid AI adoption).
• Vertical AI workflows:
  • Preference for companies automating specific workflow stacks.
• Example investment: Green Shoe (legal tech) automating SEC filings.
  • Founder with deep domain experience in law funds and SEC filings.
  • Award-winning CTO in AI/ML, underscoring team pairing of domain + technical excellence.

Value-Add from Hearst Alignment

• Access to ~300 businesses under Hearst:
  • Ability to plug portfolio companies into large enterprise environments.
• Go-to-market and ops support: marketing, sales, HR expertise.
• Global scout network for founder support.
• Collaboration mindset:
  • Partnerships across broader ecosystem; competitive advantage in crowded deals via Hearst-linked resources.
• Operates like a traditional VC (returns-driven), not as a corporate strategic investor.

1-Minute Pitch Guidance

• Be direct: state the business, problem, solution mechanics, and whether you’re raising.
• Follow-up question: be precise and high-level; use the conversation to connect later.

Founder Q&A Highlights (Session 1)

• Dexter (AR smart glasses for context-layered notes on physical objects in automotive/power plant workflows):
  • Stage: angel; no prototype yet.
  • Advice: creative concept; get pilots and testing underway to validate; open to future discussion after customer traction.
• Evan (compliance-focused “operating system” for AI applications; open-source GTM strategy):
  • Question: investor views on open source for rapid market capture, then monetizing distribution (Shopify-like model).
  • Advice: seek alignment with investors who believe in open source value capture; heavy traction (e.g., 400% usage growth) can trump concerns; prove the model.
• Jake (blockchain entertainment protocol; token-based approach aiming to acquire AMC):
  • Question: projections and materials given post-acquisition roadmap.
  • Response: Damian lacks tokenization/M&A via token expertise; sees it as new territory; cannot advise meaningfully.
• Sean (Ivy Cyber; PrivacySafe.app: local LLMs, offline secure zone for chat/files/meetings):
  • Question: target crypto privacy enthusiasts vs broader enterprise customers.
  • Advice: early adopters adopt fast but can be less sticky on payment; crypto can be boom/bust; narrow your niche and solidify product for customers more likely to pay and sustain.
• Tyrel (AI platform enabling SMBs to deploy AI quickly):
  • Question: getting Damian/Daryl on cap table quickly.
  • Reality: Level Ventures does not invest outside the U.S.; Damian offers a call and potential VC intros; later notes the possibility if incorporated in Delaware/US.
• Arjun Shukla (AI Labs, India):
  • Question: how to get Aryan/Damian onboard.
  • Advice: email to connect; host encourages more thoughtful, problem-focused questions rather than meeting requests.
• Jennish (smart glasses with “photographic memory” concept; 150+ signups; raising $200k pre-seed):
  • Confusion over fund names; Damian reiterates no non-U.S. investments but open to conversation and connections; moving to the U.S. could change eligibility.
• Dan (Familiar: cross-border social + payments with multi-currency ledger and Stripe payouts):
  • Question: signals that a product can define a category.
  • Advice: team fit (complementary cofounders and technical skills), technology stack differentiation sustained over time, and ability to build network of supporters/investors.
• Jim (platform for AI product development: team formation, missions, milestone-based funding unlock):
  • Question: establishing initial budget and early customer base.
  • Advice: go where customers are—local meetups, communities, partnerships; engage in spaces like this; partner with community leaders to promote while adding value.
• Justin Johnson (Lily’s Organic AI; non-transformer, biology-inspired logic, self-invented language):
  • Question: fear of being copied vs sharing publicly.
  • Advice: don’t let fear hinder progress; great products get copied; execution and “secret sauce” matter more than ideas.

Session 2: Earthling VC (Aryan)

Fund Profile and Focus

• Background: failed founder turned engineer (Meta/Oculus), specializing in running AI research on hardware (tiny ML); transitioned to angel investing and launched Earthling VC.
• Thesis: frontier computing and mediums; hardware/compute; “invest in weird, fringe, early” opportunities.
• Stage: first or second check; predominantly pre-seed.
• Instruments: SAFE notes; prefers caps under $10M post; targets ~1% ownership.

Inception-Stage Investment Rubric (Highly Qualitative)

• Problem-space fit: investor must inherently care about the area.
• Speed of execution: impressive progress in short time frames.
• Resourcefulness: what was achieved given limited resources; efficient use of capital/tools.
• Unique insight/secret: founder’s proprietary understanding of niche workflows or market truths.
• Commitment/obsession: mission-driven founders with sustained focus (example: Zurich founder obsessed with bridge corrosion detection via drone-mounted parts).

Fundraising and Outreach Guidance

• Stage alignment:
  • Don’t pitch multistage funds (Series A/B) at inception; seek true pre-seed investors.
• Warm intros over cold outreach:
  • Higher response priority from trusted sources; reflects founder’s shrewdness in network navigation.
  • If no warm path, thoughtful cold outreach can still work—focus on why you (team) are great, not just idea exposition.
• Lead investors are not necessary on pre-seed SAFEs:
  • Start taking checks; don’t wait for a “lead” and risk going cold.
  • SAFE rounds are fluid; caps can move as demand grows.
• Fundraising is driven by investor demand, not founder “need”:
  • Raising $5M implies a ~25M post valuation; misalignment with perceived value can stall a round.
  • Structure the round around demonstrated demand; avoid over-targeting based solely on internal budget.

1-Minute Pitch Guidance (to maximize Aryan’s advice)

• Context-first for the problem you want help with.
• Provide concise team info and relevant technical/market context.
• Ask a focused, practical question (technical, market, sales) directly tied to your current obstacle.

Founder Q&A Highlights (Session 2)

• Robert V. (Sale Wellness: clean commerce layer; proprietary toxicology engine; Oxford PhD onboard; browser extension monetization):
  • Question: how to prove PMF at early stage.
  • Answer: pre-seed investors don’t expect PMF; they invest in the belief you can find it. Ensure stage alignment and avoid multistage funds at inception.
• Ben (customer service automation; agent-agnostic flows; deflection-focused):
  • Question: getting a lead investor.
  • Answer: on SAFEs, no lead required; begin accepting checks and adjust caps as momentum builds.
• Gabriel (hardware operator; offering intros to flying cargo ships and aircraft skin anomaly-detection drones):
  • Question: check size/ownership and hardware vs software differentiation.
  • Answer: targets ~1% ownership, caps ≤$10M post; prefers fringe vs consensus/red-ocean areas.
• Christopher (geometry-based AI codec; 2D to 3D conversion with a new language; compresses better than pixel architectures):
  • Question: interest in this tech.
  • Answer: in theory yes, but commercialization is often the failure point; diligence would focus on go-to-market and revenue.
• Somvansh (Hygienics AI: automating enterprise-scale interviews; multimodal context; Razorpay Rise cohort; $160k Azure credits; inbound interest from large U.S. companies; raising $250k on $5M SAFE):
  • Question: investment in U.S. entities with foreign founders.
  • Answer: many investments are U.S. companies with foreign founders; team presence in the U.S. is acceptable.
• Sambath (Athena AI: cheaper, high-quality web search for LLMs; matched leaderboard performance; B2B focus):
  • Question: how to sell into enterprises without domain networks.
  • Answer: brute-force outreach; conferences; open-sourcing datasets; proactive engagement; identify niche verticals and targeted potential clients; be aggressive, not passive.
• Prajawal (data science app; traction in 22 countries):
  • Question: best methods to reach pre-seed investors.
  • Answer: mission and stage alignment; warm intros if possible; well-crafted cold outreach emphasizing the founder’s excellence.
• Carlos (unified control platform for land/air/sea drones; no-code workflows):
  • Question: how aggressive to be with hardware development spend and fundraising.
  • Answer: prototyping is faster/cheaper now; market expectations have evolved. Fundraising should reflect investor demand, not internal need. Be mindful of valuation implications (e.g., $5M raise suggests ~$25M post).

Cross-Session Takeaways and Actionable Guidance

• Empathetic, structured investor communication matters:
  • Level Ventures exemplifies quick, transparent feedback and “passing with grace.”
• Product and team trump superficial traction:
  • Both VCs prioritize deep tech differentiation, data moats, and proven execution speed/resourcefulness.
• Domain expertise paired with technical leadership is non-negotiable in AI workflows:
  • Strong CTO or equivalent technical leadership is a critical signal.
• Be precise and proactive in short pitches:
  • State problem, solution mechanics, raising status, and ask a focused question. Use communities, meetups, and partnerships to amplify reach.
• Fundraising strategy:
  • Pre-seed rounds are qualitative; investors underwrite people and problem spaces more than current metrics.
  • Stage alignment is crucial; avoid mis-targeting multi-stage funds at inception.
  • Warm intros are superior; if cold, emphasize why you (team) are exceptional.
  • No “lead” is needed for SAFE rounds; start closing checks and build momentum.
  • Structure raises around demand; don’t set targets solely from internal spend needs; mind valuation-to-raise ratios.
• Go-to-market realism, especially in deeptech/hardware:
  • Commercialization beats foundational novelty. Demonstrate pilots, early customers, and practical workflow value.
• Don’t let fear of copying stall progress:
  • Execution and continuous innovation are the real defensibility.

Notable Highlights

• Level Ventures investment example: Green Shoe (legal tech; automating SEC filings) underscores the importance of domain knowledge plus top-tier AI talent.
• Hearst-backed value-add: 300+ businesses for pilots/distribution, plus marketing/sales/HR support and global scout networks.
• Earthling VC’s rubric provides a clear lens for founders to self-assess: speed, resourcefulness, unique insight, and commitment.
• Practical fundraising clarity: SAFE dynamics, cap fluidity, and why “lead investor” fixation at pre-seed is often counterproductive.

How to Connect

• Damian J. Murray (Level Ventures): active on LinkedIn and Twitter; shared openness to email follow-ups.
• Aryan (Earthling VC): prefers Twitter and email; explicitly requested no LinkedIn outreach.