An Interview with Ed Sim
The JPMorgan Private Equity Group welcomed over 70 investors to New York City for a deep dive into trends in the private equity market and an update on the Group’s platform. Jarrod Fong, Portfolio Manager, moderated a discussion on the venture capital landscape with Ed Sim, Founder and General Partner of boldstart ventures. Below is a summary of their conversation.
The evolving venture capital landscape
Venture capital is evolving rapidly with the growing focus on technology and artificial intelligence (AI), underscoring the importance of early-stage investing. Ed Sim, boldstart ventures, is at the forefront, investing in what he calls "inception rounds." Ed and the boldstart team help founders execute on their business plan and facilitate introductions to high-quality talent. Ed will look to lead or co-lead the initial fundraising rounds, preceding seed rounds. It can sometimes take companies 5-6 years to generate their first dollar of revenue and reach their inflection point, making early partnerships crucial. This strategic approach allows boldstart to collaborate closely with innovative founders who have a vision for the future of sectors such as software and enterprise solutions.
“While you can’t make a market happen, if you see the future, you can catch the curve at the right time, in the right place. If you get there 2-3 years in advance, you’re really set up for success.” – Ed Sim
The best founders, in Ed’s opinion, are typically technical individuals, often engineers, who are driven by personal pain points. They think about problems incessantly—these founders are up in the middle of the night—and are motivated to automate solutions. For example, the founder of Snyk, a company backed by boldstart, was frustrated with the manual process of scanning for open source vulnerabilities, so he created an automated platform to address this issue. Ed and the boldstart team seek founders who have a deep understanding of the problems they want to solve and a clear vision for the future.
The first inning of the AI revolution
Recognizing AI as the most exciting opportunity to emerge throughout his career, Ed believes that we are on the verge of a significant platform shift in AI capabilities—one that surpasses the internet, mobile or cloud revolutions. In his opinion, one of the most intriguing opportunities that will transform conventional work methods is the invention and application of AI agents. AI agents, which he describes as digital employees, are designed to act on behalf of businesses—automating tasks, enhancing efficiency and reducing the need for human intervention.
While no industry is immune to disruption and enhancement through AI, the SaaS industry is particularly poised to experience a shift in business models over the next three years as AI-driven solutions enter the market. Ed views AI as an opportunity to enhance productivity through the integration of new solutions, such as AI agents, into traditional labor processes. Companies may ultimately require fewer personnel, as AI agents can perform necessary tasks digitally, providing continuous output around the clock.
In light of this shifting landscape, boldstart is observing companies that have been diligently building their technology and business for a long time experience "sudden" and explosive growth as the market and AI catch up with their vision.
Market dynamics, investment strategies and outlook
Many anticipated a surge in IPOs and M&A earlier this year, but the market remains uncertain amidst heightened volatility. While companies may continue to pursue M&A opportunities across the spectrum, IPOs are expected to be delayed until 2026. However, the abundance of private capital available gives companies the option to remain private and sidestep the challenges of public markets. With the reduction in AI costs, a flood of new companies is expected to emerge in the market. Ed is focused on the "second-order effects" that AI will bring about.
“We have to be 2-3 years ahead because when you’re first you need to pioneer new markets. […] I truly do believe that there’s no industry immune to being turned upside down by two people in a loft right now, thinking about how to apply these models, how do I get proprietary data and how do I do things 10 or 100 times better than what already exists?” – Ed Sim
Amid rapid changes in technology and market dynamics, Ed and the boldstart team remain committed to their “inception” investment strategy. They strive to stay ahead of the curve by identifying shifts early and investing in technical founders who are well equipped to navigate change in areas where AI and other technologies can create significant value. Endurance is a key guiding principle, as the team collaborates with high-conviction companies and founders, providing them with the resources and support they need to succeed, even if it requires waiting several years for the market to catch up. This approach has enabled boldstart to identify and nurture companies that have subsequently achieved success.
Ed Sim - Founder and GP of boldstart ventures
Ed Sim is the founder of boldstart ventures, a dedicated inception partner to bold technical founders reimagining the enterprise. Ed serves on the boards of Snyk, BigID, Protect AI, Tessl, Blockdaemon and other top cybersecurity and infrastructure startups. He also co-founded MState, an enterprise blockchain lab in partnership with IBM, where early investments include Fireblocks.
Before boldstart, Ed co-founded Dawntreader Ventures in 1998, leading inception investments and serving on the boards of Greenplum (acquired by EMC, later Pivotal IPO), GoToMeeting (acquired by Citrix) and LivePerson (IPO). He began his career at J.P. Morgan, where he worked on quantitative trading models, and learned the art of sales selling Cutco Knives during college. Ed graduated from Harvard College with a BA in economics and played on the D1 lacrosse team for four years.