LtM ep4 - Kelly Chen, Partner at DCVC on Investing in Old School Industries and Fundamental Demographic and Labor Shifts

Kelly Chen is a Partner at DCVC — a US-based venture fund founded in 2011 that raised $725 million in November 2019 to invest mostly in deep tech.

Kelly is a China-born New Yorker now based in SF, who graduated from Columbia Engineering and Wharton with a focus on finance algorithms and manufacturing operations. She worked as a fixed income trader who started angel investing actively and eventually dived into venture capital.

DCVC has invested in Agtech, Advanced manufacturing, biology and even space tech. Kelly focuses on the transformation of manufacturing, logistics and apply chain with automation and AI.

This podcast is hosted by Benjamin Joffe, Partner at SOSV, a global early stage fund focused on deep tech. SOSV runs multiple accelerator programs including HAX (intelligent hardware) and IndieBio (life sciences).

Episode Overview

In this episode, Kelly talks about:

The opportunities offered by major demographic and labor shifts, with examples examples in the textile industry (SmarTex,  also a SOSV/HAX investment) and senior care.

The appeal of 'old school' industries, where opportunities abound.

Vertical vs Horizontal companies. In deep tech, vertical expertise is often part of the 'defensibility stack' alongside AI / deep learning algorithms and data sets.

DCVC's unique network of 'equity partners', who support the firm with deal flow, expertise and business networks.

How DCVC mixes thesis-driven and opportunistic investments.

DCVC's approach for the due diligence of deep tech startups on both the technology and business sides.

Finally, we close with some remarks on the Covid-19 situation for DCVC's portfolio and investment activity, as well as recommendations on how to deal with confinement and ramp up knowledge in deep tech.

References Mentioned

Blue River Technology: ‘see and spray’ agtech robotics for weeding, acquired by John Deere for $305m

SmarTex: AI-based computer vision to detect faults in fabric and improve yield (note: also a SOSV / HAX portfolio company)

SafelyYou: AI-based video detection for falls among elderly and dementia patients.

Curative: an oral test for Covid-19, just received FDA’s emergency use authorization.

Space tech investments: Rocket Lab (launchers for small sats), Planet (daily satellite imaging & insights using cubesats), Capella Space (Earth imagery using satellites equipped with radars).

DCVC’s portfolio response to Covid-19

Night on Earth: a Netflix series filming wildlife at night (note: the eponymous movie by Jim Jarmush is also a good pick!)

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