11 Tribes Ventures is an early-stage venture capital firm that invests in purpose-driven and high-growth startups while supporting founders with both capital and hands-on strategic guidance. Pulse 2.0 interviewed 11 Tribes Ventures founder and managing partner Mark Phillips to gain a deeper understanding of the company.
Mark Phillips’ Background
Could you tell me more about your background? Phillips said:
“My journey to venture capital was anything but conventional. I began my career as a strategy consultant, specializing in mergers and acquisitions. I quickly recognized that the ceaseless travel this required was not a sustainable path for me, so I pivoted to pursue an MBA at the University of Chicago Booth School of Business.”
“While at Booth, I embarked on my own entrepreneurial journey by launching my first company. The experience that followed was a profound lesson in the volatile and unpredictable nature of the founder’s path, ultimately culminating with my company’s failure. While grappling with the disappointment of this business outcome, I found myself even more shaken by the identity crisis that had crept its way into my mind. I truly felt crushed under the weight of being a failed founder. It was in this season of reflection that I began to grasp the meaning of the ancient truth “what does it benefit a man to gain the whole world, yet forfeit his soul?””
“I became motivated to help others avoid, or at least mitigate, this same pain. I set out to build 11 Tribes, a firm where capital and care are focused on the founder. As the Founder & Managing Partner of 11 Tribes Ventures, I support the team’s efforts across all aspects of the firm including investing, fundraising, and operations.”
“My personal passion lies in helping those around me – whether it’s the 11 Tribes team or the founders we invest in – discover and activate their unique purpose in life. These moments of connection and clarity are the most rewarding aspects of my work.”
Evolution Of The Firm’s Thesis
How has your firm’s thesis evolved over time? Phillips noted:
“Our mission to value founder outcomes has remained the same but the process has evolved. For example, our Fund 2 capital allocation thesis is much more robust and differentiated than Fund I. We are focusing on capital efficient businesses and founders that are building companies that can find an exit opportunity between $75M-$250M.”
Favorite Memory
What has been your favorite memory working for your firm so far? Phillips reflected:
“That’s a tough one! There have been so many great moments working with the team and our founders. One of my most recent favorites has been the launch of our Burnt Series which we are really proud of. It’s the opportunity to bring founders together and break bread over dinner. We share founder war stories and talk about surviving the fires of fundraising – from burnout to setbacks, what’s really required. It’s the stuff that’s not found in our founder pitch decks that bring us all together.”
Significant Milestones
What have been some of your firm’s most significant milestones? Phillips cited:
“Raising Fund 1 was a huge milestone for us and just recently closing our $46M Fund 2 was a major step in the 11 Tribes journey.”
“Hiring the right team and partners including Jeff Baxtern, Kristina Chapple and Isaac Arnold were big steps to our success. Also being recognized by Fobres was a major win for our firm.”
Investment Success Stories
Would you like to share any specific investment success stories? Phillips highlighted:
“I won’t dive into all the specifics here, but we’ve made some really rewarding investments from our first fund including working with founders from Ryze, Bloomfilter, Attend, and Breakr.”
“With the new fund, we’re already seeing promising success with NuTrad, GoNanas, Alloy, and Circadian Risk, to name a few.”
AUM And Other Metrics
Can you discuss total AUM or any other notable metrics? Phillips revealed:
“At 11 Tribes, we measure success by our founder outcomes. Of course metrics and dollars matter, but we make this a priority.”
“On the business side, we look for things like capital efficiency, unit economics, clear path to profitability, and a growth-mindset that would celebrate an exit valuation of $100-250M.”
“On the Founder side, we look for three things: Humble, Hungry, Smart. If any one of these is missing, that is a company and founder that we are highly unlikely to work with.”
Industry Focus
What are some of the industries that your firm is focused on? Phillips noted:
“We are industry agnostic but we focus on things like founder market fit. We have invested in companies that range from delicious banana bread to AI powered Saas solutions to a resale marketplace for kids. While the industries have a range, the founders have commonalities and their businesses meet the criteria that fit the 11 Tribes mission.”
Differentiation From Other Firms
What differentiates 11 Tribes from other firms? Phillips emphasized:
“Our belief is that if founders compromise on the pieces of life that make it most worth living- strong relationships, peace, health- then they are putting existential risk on the company.”
“We stand by this belief and that is why we approach investing differently. For example, we spend the majority of our initial call with founders asking questions exclusively about the personhood and their journey of the founder – questions like: where are you from? What do you love? What are they known for? From the first impression, we are radically relational.”
“We also allocate $20k to each founding team for them to invest in themselves as leaders within the context of their company, but even more broadly, just as human beings. We fund many founders’ therapy, coaching, even marriage counseling.”
“Finally we have a Handshake Agreement. So much time and resources go into the term sheet negotiation, but we put that same level of emphasis and importance on the relationship we enter into with these founders. This agreement is a physical document both parties agree to that outlines our commitments to each other.”
Challenges Faced
What are some of the challenges you faced while working at the firm? Phillips acknowledged:
“Early on, the largest challenge was both finding investors that wanted to commit to our fund and sourcing investment opportunities. It’s a classic chicken and egg problem as LPs don’t want to commit to a fund that doesn’t have a good pipeline of deals, but founders won’t give you time as a VC if you don’t have capital to deploy.”
“Thankfully, as we raised Fund 1, we made a few early closes on capital from LPs which allowed us to start building a portfolio. For Fund 2, the increase in fund size presented a challenge as most of our investors write smaller checks – our LP base is largely non-institutional writing checks between $100–250K. But the pipeline quality had increased substantially and the brand recognition had grown tremendously. Both of these things allowed us to raise the $46M Fund 2.”
“Lastly, finding the right people to be on the team. Very early on, I had multiple business partners that proved to be the wrong fit for our strategy and approach. Hiring Kristina Chapple as our first employee and now partner was a pivotal moment. Her rapid integration with the thesis and strategy has been impactful.”
Future Goals
What are some of your firm’s future goals? Phillips shared:
“Our rally cry for 2025 is ‘Find. Fund. Forge.’ With a fresh new fund in the market, we are deeply focused on deploying the capital into resilient, growth-minded entrepreneurs building remarkably capital efficient businesses.”
“Long term, we believe that we are building a generational investing firm. We see the world differently and the long term nature of the work we engage in with entrepreneurs will serve to increase the potency and effectiveness of our firm.”
Additional Thoughts
Any other topics you would like to discuss? Phillips concluded:
“On a personal note, I live in the western suburbs of Chicago with my wife Emily and our three boys who are what make this journey worth it. I’m learning to love the quiet of the early morning!”
“I’ve also become a passionate consumer of all things leadership, and I’m fascinated by the power and journey of other people.”
