Mission Driven — Nan Li of Obvious Ventures
“What’s happening in biology is a great case study of what we’re excited by at Obvious broadly, which is the influence of technology in a new space that’s very important for society that happens to be disassociated with the tech industry, but the dynamics of that are quickly changing” — Nan Li
When I first met Nan, I was impressed by the way his low key, youthful, self-effacing demeanor belies an expansive intellect, shrewd investment style and worldliness that’s rare in venture investing. Armed with a degree in computer science from the University of Michigan, he set out to build his career at the intersection of business and technology, first in a handful of operating roles, then in investing stints at Bain Capital Ventures, Innovation Endeavors (Backed by former Google CEO Eric Schmidt) and now at Obvious Ventures. He found his love for investing at Innovation Endeavors where he became one of the first deeptech investors before the term had even been coined. Now a partner at Obvious Ventures, Nan focuses at the intersection of deep tech and “World Positive” companies, in areas like AI, robotics, AR/VR, space, and computational biology. Throughout our Mission Driven podcast discussion, he exuded an emphasis on big investment returns by focusing on emerging technologies with the potential to affect society in a profound way. In one breath he will reference topics from Blockchain to autonomous vehicles to Adam Smith. His clear intent is to fulfill the fundamental promise of capitalism by pouring investment fuel on the fire of the most promising new technologies.
We talked at length about computational biology and why he sees it as an attractive category. It’s rare that the confluence of multiple trends reach commercial potential simultaneously, enabling the rewiring of large traditional industries. In this case, the explosion in health data coupled with laboratory automation, advanced robotics, and advanced AI infrastructure have the potential to usher in a new era in drug discovery, green chemical production, food production and many more areas. Having made iconic investments in the category, like Zymergen And Recursion Pharma, Nan walked us through why computational biology is so promising and how it represents Obvious Ventures’ strategy in a microcosm.
Here are some of the main takeaways for entrepreneurs:
Big Problems Require Audacious Solutions
While deeptech is often risky and capital-intensive, it also enables entrepreneurs and investors to address some of the more important and hard to solve challenges in the world, many of which can’t be solve with a mobile app or basic SaaS. Sometimes you need satellites, deep learning algorithms, or next generation battery technologies. Don’t shy away from solving the most difficult problems and going after the tech (or the PhD) required to do it. Not only can you address some of the harder problems in the world but you may find your company is more valuable because your innovation is much harder to replicate.
“If you want to solve the biggest problems in the world you should have every tool at your disposal, you want to have a full pallet of colors to work with because you’re going after very challenging problems.”
Financial Return and Social Mission Aren’t a Trade-Off
Obvious thinks about sophisticated companies solving big problems that create a “World Positive” outcome for society. They look for investments where the mission drives the business model and the business economics in turn enable the business to scale. So it’s not one or the other, but both. Nan talks about how these companies also demonstrate an out-sized ability to attract some of the best talent.
“Being a part of something more than your compensation package, more than the office space and the free lunches, to understand that you’re leaving a mark on the world — that’s very motivating, especially for the most experienced and in-demand people.”
Not Just Why, But Why Now
Nan talks about the convergence of trends creating a unique opportunity in computational biology, and about his time at Innovation Endeavors where they followed technologies that were cutting edge but whose time had not yet come. So if you are pitching an audacious deep tech solution, be ready to talk about the confluence of trends in the market and how you’re bringing some of the biggest technical breakthroughs of our day to bear on an important problem and how customers are ready to embrace them.
Listen to more of Mission Driven on Anchor, Apple Podcasts, Spotify, Google Podcasts and most listening platforms.
