In October 2024, Swell VC, a New York-based venture capital firm, announced its second fund with $11.5 million in commitments, bringing their total assets under management to $19 million.
Co-founded by Rusty Ralston and Jay Patil in 2011, Swell isn’t trying to compete with the larger VC firms. Instead, they’ve chosen to focus on a hands-on approach, helping founders tackle critical early challenges like making their first hires and refining their go-to-market strategies.
I spoke with Rusty and Jay about their investment thesis, how they work directly with founders, and the lessons they’ve learned while building their portfolio. Here’s a full breakdown of our conversation:
(1:36) Rusty explains how he and Jay met.
(4:08) “ People determine the outcome of a company.”
(5:36) “ You start the search when you're ready to hire. And then you build momentum.
(8:27) When Swell VC gets involved with founders, where they’re looking to invest.
(11:24) Jay talks about the firm’s portfolio strategy and its second fund.
(14:38) When it comes to early hiring, “ over the last 15 years, we've codified all of our learnings.”
(17:16) Where do founders make the most mistakes in the hiring/interview process?
(21:43) “A big blind spot is thinking diversity is just about hitting certain metrics.”
(23:15) “ We're all about finding founders to live on what we call ‘the edge of the inside.’”
(26:39) “ No solo founder can do everything forever.”
(29:14) “ You don't need to build a full team right away. Your network is kind of your first line.”
(31:55) Signals that indicate a founder’s ready to take the leap into entrepreneurship.
(34:40) Why Swell VC is looking for category-creating startups to invest in.
(37:34) Questions Jay and Rusty expect founders to ask during the discovery meeting.
(40:25) How they prefer to be pitched.
If you’re exploring what it takes to move from idea to execution — or wondering how to find the right investors to help you build your team — this conversation offers insights from two VCs who’ve been at it for more than a decade.
Check out the full episode to hear more about Swell VC’s approach to category-defining startups, why alignment between founders and investors is critical, and how they’re helping their portfolio companies define new markets.
RUNTIME 42:09
LINKS
SUBSCRIBE
Thanks for listening!
– Walter.
