NextGen Venture Partners' co-founder Brett Gibson is often on the road, meeting the investors and entrepreneurs that are extending NextGen's reach across the country. As NextGen continues to evolve from an angel investor group to a venture capital firm with a $20 million fund in the works, the University of Virginia alumnus and qualified Army Ranger is out meeting all kinds of potential new investments. But, he still calls Virginia home and has big dreams for the region's startup scene.
How did you get into the startup scene? What led you to NextGen?
I started a company called Patriot Caliber after graduating from UVa. It was a privatized military recruiter, a private company to help the DoD recruit for the army using psychographic marketing data to target people. At the time, they were looking for contractors to help increase the numbers. I had a contract, but ultimately I lost it to large established company, but I really loved the idea of startups. Eventually, I joined LivingSocial and it seemed natural for me to go from LivingSocial to the investing side. I learned a lot there [at LivingSocial] that applies at NextGen.
What makes this area a good choice for you to have your investing career?
I wanted to stay close to Virginia, and I feel like the D.C. area is large enough to work with, but small enough for me to make an impact. I grew up in Virginia Beach and I have always loved the state. I've never lived outside it except a year in the Middle East with the Army National Guard and then Harvard Business School.
What do you do outside of your job to stay motivated and interested?
I'm in the Army National Guard Reserve and have duty one weekend a month. I've never had a better way of decompressing than sleeping under stars the stars and going to the rifle range in Virginia. I come back with new ideas and a new perspective, completely reset. It might not seem relevant but it relates to NextGen because of being mission driven. So, there are similarities but enough differences that I come back refreshed each time.
How do you view the companies you help pick to invest in, what do you look for?
We've started to focus more on the fundamentals of the businesses we invest in. I prefer companies that show versus tell me what they've done. I care about companies that have more durable business models, the kind we can invest in and then scale up the investment. It's a way to have a real impact and I'm excited to be part of that, of helping bright young people who don't just want to join established firms. They take their ideas and build things. They're building companies that are going to reshape the world. I want to be part of that revolution.
"They're building companies that are going to reshape the world. I want to be part of that revolution."
What do you see as the good and bad of the D.C. startup and innovation ecosystem?
D.C. is great for regulated industries like in the government and with education, healthcare, energy, any regulated industries like cybersecurity. With cybersecurity, companies that add the most value have an interface with the intelligence community and Department of Defense. They think about how to make intelligence more seamless. Connecting to government and its money is something people here can do. People here know all these different colors of government money and can help navigate the government.
But, to become a real hub, we need [company] exits and [the money] that those exits bring here. NextGen can help the local startups make the leap, but D.C. has lagged because the smartest people here leave to start a company or get funding. D.C. is great for investors with reasonable valuations too, and you can't overlook the impact of the [former employer] Carlyle Group has had in the region. They do mainly later stage investing now, but their roots are in earlier startups.
Which are your favorite NextGen investments, if you had to pick one or two?
That is really hard. I guess the best would have to be maybe [healthcare startup] Avizia and also [flower delivery service app] UrbanStems. Their teams are just so passionate and are uniquely qualified to do what they do.
What local startups do you wish you had or could invest in?
I wish we had invested in [data visualization and analytics startup] ZoomData. I admire Justin [Langseth, ZoomData CEO] so much. He has the Midas touch when it comes building companies. But there are a lot of great startups out there causing massive disruption to major industries. We want to be ahead of that curve.
