Ludlow Ventures, a Detroit-based venture firm, is celebrating its 15th year in business, thanks to the ability of its founders, Jonathon Triest and Brett deMarrais, to read people and build lasting relationships with founders. Despite lacking operating and investing experience when they started the firm, Triest and deMarrais relied on their instincts about people to make successful investments.
Ludlow currently has $250 million in assets under management, including a new $50 million fifth fund. This new fund attracted commitments from prominent investors such as billionaire Dan Gilbert, financial services company Northern Trust, Israel-based venture firm Vintage Investments, and fund of funds outfit StepStone.
One of Ludlow’s early investments was in a Chrome extension called Honey. Although Triest and deMarrais were initially unsure about the product, they were impressed by the founders, Ryan Hudson and George Ruan. Ludlow wrote the first check to Honey, which later sold to PayPal for $4 billion in 2020, resulting in a significant return for Ludlow’s fund.
Triest emphasizes the importance of investing in exceptional people rather than just verticals or ideas. Many VCs claim to invest in people, but Triest believes that Ludlow’s success is a result of their genuine commitment to building strong relationships with founders.
While luck played a role in Ludlow’s early success, Triest acknowledges that luck alone cannot sustain a business for 15 years. The firm’s ability to maintain strong bonds with founders and continue investing in their ventures sets it apart from newer firms that are struggling to attract investor interest.
Ludlow does not have a geographic or sector focus and relies on its ability to connect with founders on a personal level. The firm’s marketing efforts have included a video series called “Carpool VC,” which helped create a sense of familiarity with potential partners.
Ludlow has invested in a diverse range of companies, including Flex, a flexible payments platform; Density, a workplace analytics company; Captions, a video editing app; Notarize, an online notary network; and Backbone, a startup that turns iPhones into gaming devices. The common thread among these companies is the exceptional founders who make Ludlow want to work with them.
Triest dismisses the “founder-friendly” chat that other VCs often espouse, emphasizing the genuine commitment Ludlow has to its founders. If they are not standing up in a founder’s wedding, they consider it a failure.
Overall, Ludlow Ventures’ success can be attributed to its founders’ ability to read people, build strong relationships with founders, and make investments based on the exceptional individuals behind the ventures. Their focus on people rather than verticals or ideas has allowed them to navigate the competitive VC landscape and achieve longevity in the industry.