Thomvest Ventures is a cross-stage venture capital fund based in Silicon Valley and Toronto. The firm is investing the capital of one individual Peter Thomson – whose family owns the majority of Thomson Reuters. Peter started Thomvest Ventures in 1996 and has invested in over 75 private companies since that time. Pulse 2.0 interviewed one of Thomvest’s managing directors Umesh Padval to learn more about the firm.
Umesh Padval’s Background
As a Managing Director at Thomvest Ventures, Padval is focused on investments in the cybersecurity, cloud, and AI infrastructure sectors, where he invests and partners with founders and CEOs of companies developing disruptive technology platforms such as Cohere, Harness, Baffle, CyCognito, and Opaque Systems. Padval said:
“I currently serve as a Board Member at Isovalent (recently acquired by Cisco), Bolster, Quiet AI, Impinj (public), Avalanche Technology, and as a Board Observer at Clari.”
“Prior to joining Thomvest, I was a successful entrepreneur, investor, and CEO of a public company. Most recently, I worked for over eight years at Bessemer Venture Partners in their Menlo Park offices. Prior to Bessemer, I was an Executive Vice President at LSI after its acquisition of a public video infrastructure and distribution company in C-Cube Microsystems, where I served as President and CEO. Over the course of my career, I have served on over 35 public and private company boards, bringing extensive operating experience and skill set valued by CEOs and founders.”
“I have previously served on non-profit boards of Sutter Medical, Palo Alto Medical Foundation, and on advisory boards of Stanford School of Engineering and Stanford School of Education.”
“I completed my Bachelors in Engineering at the Indian Institute of Technology, Mumbai and completed my Masters in Engineering at Stanford University.”
Evolution Of Thomvest’s Thesis
How has Thomvest’s thesis evolved over time? Padval noted:
“In the early days, Thomvest Ventures was a generalist investment firm, where we didn’t have specific verticals we focused on. In 2010, the firm decided to leave the generalist world behind to specialize in investing in a few key industries. We embarked on thesis based investing: analyzing large markets, finding sub-segments which were ripe for disruption whether it was creating new markets or disrupting existing ones. Today, the firm deploys capital in the areas of cybersecurity, cloud and AI/data infrastructure, financial and real estate technology.”
Favorite Memory
What has been Padval’s favorite memory working for Thomvest so far? Padval reflected:
“Every day, I wake up with enthusiasm, eager to connect with the visionary founders of remarkable companies and listen to their world-changing dreams. Having spent over 30 years in Silicon Valley, starting from my time at Stanford, I’ve had the privilege of witnessing the evolution and growth of various multi-billion dollar industries – from semiconductors, PCs, networking, internet, and search to social media, biotech, SaaS, and now generative AI.”
“One of the most memorable aspects of my experience at Thomvest is the remarkable speed at which we make investment decisions. From the initial meeting with founders to the actual investment, the entire process takes less than two weeks. We’ve had the pleasure of engaging with exceptional companies like Clari, Harness, Cohere, and Isovalent. In each case, we were deeply impressed by the founders, their visionary outlook, and the speed at which we could perform due diligence, gain conviction, discuss with partners, and make investments—all within a remarkably short timeframe.”
Significant Milestones
What have been some of your firm’s most significant milestones? Padval cited:
“We feel incredibly fortunate to have invested in outstanding companies such as Sofi, Vungle, Skyhigh Networks, Cylance, Thousand Eyes, Isovalent, Harness, Cohere, Clari, Carta, and many more. These remarkable companies have not only contributed to our portfolio but have also delivered exceptional returns, enabling us to raise new funds.”
Investment Success Stories
After asking Padval about investment success stories, he highlighted:
“Isovalent stands out as a recent investment worth highlighting. We formulated a thesis centered around open source software in the networking and security sector and recognized Isovalent as a prominent leader with exceptional founders addressing crucial pain points for enterprises in that space. Driven by our conviction in their vision, we actively pursued the founders, even when they weren’t actively seeking funding.”
“Following our investment, Isovalent experienced substantial growth despite facing challenging macroeconomic conditions over the past two years. The success story culminated in their acquisition by Cisco in December 2023, just under two years since our initial investment. This was the best outcome for all.”
AUM/Metrics
After asking Padval about the firm’s AUM and other metrics, he revealed:
“Today, Thomvest Ventures has an AUM of $750 million and have experienced some notable exits such as Isovalent and Thousand Eyes which were both acquired by Cisco, Lastline sold to VMware, and Skyhigh Networks sold to McAfee.”
Industry Focus
What are some of the industries that your firm is focused on? Padval noted:
“Our firm allocates capital to key sectors, including financial and real estate technology, cybersecurity, cloud, and AI/data infrastructure. These are areas where we possess extensive expertise, allowing us to strategically deploy capital and contribute to the growth and innovation within these industries.”
Differentiation From Other Firms
What differentiates Thomvest from other firms? Padval affirmed:
“At Thomvest Ventures, our distinctiveness lies in a combination of factors. The collective experience of CEO and board, operational expertise, and a robust network that includes CISOs, CIOs, Chief Data Officers, and Chief Risk Officers for our portfolio companies set us apart. We not only assist in recruiting top-tier C-level talent but also distinguish ourselves through the agility with which we navigate investment decisions. Lastly, our profound expertise and in-depth knowledge within the specific verticals we target further contribute to our unique positioning in the market.”
Challenges Faced
What are some of the challenges Padval faced while working at the firm? Padval acknowledged:
“Transitioning from Bessemer Ventures, which held a strong brand reputation among entrepreneurs due to its remarkable track record on exits and a robust deal flow, I joined Thomvest. At that time, Thomvest was a smaller firm with notable success in adtech and fintech. However, it lacked specialty in the cybersecurity, cloud, and AI infrastructure domains.”
“Upon my arrival, I took the initiative to develop a strategic thesis, outlining a roadmap for investments in these verticals. Through targeted investments and successful exits, we have not only established Thomvest as a formidable player in cybersecurity, cloud, and AI infrastructure but also cultivated a powerful brand that resonates strongly with entrepreneurs and founders in these sectors. Today, we find ourselves being actively sought after by exceptional entrepreneurs, marking a significant success for Thomvest.”
Future Goals
What are some of Thomvest’s future goals? Padval concluded:
“Our passion lies in continuing to invest in exceptional founders and collaborating closely with them to nurture the growth of outstanding companies. Our trusted LP, Peter Thomson has placed confidence in us over the years. Moreover, we aim to enjoy the journey with our portfolio companies and as a cohesive team at Thomvest, finding fulfillment in the collective effort of building success and fostering a positive and enjoyable work environment.”
