As the founder of Roach Capital, a former product lead at Shopify and Snap, and a two-time founder himself, Ananta's perspectives are grounded in a wealth of hands-on experience.

On Founder Mentality and Resilience

The "Roach" philosophy is central to Fahd Ananta's investment thesis, emphasizing resilience and the ability to persevere through challenging circumstances.

Quotes:

  1. "I'm looking for 'roaches,'...founders that just won't die. You can throw anything at them, and they'll figure out a way to survive and thrive." (This is a central theme, paraphrased from multiple interviews)
  2. "I hate to lose, so I'm going to give this every ounce of my energy and focus." [1]
  3. "In startups (and in life), it's never too late to pivot unless the game is over."
  4. "Most startups fail not because they run out of money or they didn't get to product-market fit, it's because the founders gave up. That's the number one reason." [2]
  5. "Entrepreneurship is such a lonely Journey. And if you end up doing it you're going to end up doing it yourself right like you may be a co-founder." [3]

Learnings:

  1. Embrace the "Roach" Mentality: The most successful founders are often not the most glamorous but the most resilient. They are "roaches" who can survive any market condition and emerge stronger. This is the core thesis of Roach Capital. [2][3]
  2. Grit is a Key Predictor of Success: Ananta believes that a founder's determination and refusal to give up is a more significant indicator of future success than many other metrics. [2]
  3. Founder-Market Fit is Crucial: He looks for founders who have a deep, almost obsessive connection to the problem they are solving.
  4. The Journey is Not Linear: Ananta's own career path from software engineer to two-time founder, to product manager at major tech companies, to investor highlights that careers are not a straight line but a series of "different like chapters" driven by serendipity and luck. [3]
  5. Entrepreneurship Can Be a Lonely Road: He acknowledges the isolating nature of being a founder and the importance of finding a supportive ecosystem. [3]

On Investing and Venture Capital

Ananta's approach to investing is deeply influenced by his operational background, focusing on providing practical support to the companies he backs.

Quotes:

  1. "I [was] in this interesting position, where I've been an operator, been a founder, been a [product manager], and I can now sort of redistribute some capital, and that actually helps LPs and companies." [4]
  2. "I don't think you can build a really great fund, just investing in Canadian companies, because from my point of view, I think the market is not that big yet." [5]
  3. "I never wanted to you know pretend to be a VC i want to be myself." [6]
  4. "Angel investing... was a good way to pay it forward and... effectively, you know tuition in a different industry with a call option at the end." [6]
  5. "I realized that the amount of money I was investing was not really material for these companies." (On his decision to start a fund) [6]

Learnings:

  1. Invest in Lines, Not Dots: Building a relationship with potential investors over time is more effective than a single meeting. This allows investors to see your progress and commitment.
  2. Operator VCs Add Unique Value: His experience as a founder and PM allows him to provide hands-on guidance on product strategy, hiring, and growth, which is a key differentiator for Roach Capital. [6][7]
  3. Authenticity in VC is Key: Ananta emphasizes being himself rather than conforming to the traditional VC persona, which he believes helps in building genuine relationships with founders. [6]
  4. Angel Investing as a Learning Experience: He views his early angel investments as a form of education, providing valuable insights into different industries and business models. [6]
  5. The Importance of a Global Perspective: While he has a focus on Canadian startups, he believes a successful fund needs to invest globally to access a larger market and more opportunities. [5]
  6. Aligning with LPs for the Long Term: He stresses the responsibility of managing a fund and the importance of being aligned with the long-term interests of his limited partners. [6]
  7. Leverage Your Unique Advantages: Ananta uses his deep knowledge of the Canadian market as a competitive advantage in his investment strategy. [8]
  8. There are Three Levers for a Fund: As an investor, you can compete on capital, brand, or time. For a smaller fund, time and the willingness to provide hands-on support can be a significant advantage. [6]
  9. Building Conviction Through Relationships: He often gets to know founders and their businesses by offering help with product strategy, which in turn helps him build conviction for a potential investment. [2]
  10. The Power of a Network: A strong network of founders, operators, and other investors is a critical asset for sourcing deals and supporting portfolio companies.

On Product Management and Building Great Products

Having led product teams at Shopify and Snap, Ananta has a wealth of knowledge on what it takes to build successful products.

Quotes:

  1. "Always be ready to iterate super quickly." [9]
  2. "Be transparent with your users." [9]
  3. "Absolutely love your users. If users send you great feedback, that's awesome. If they send you terrible feedback, that's great too. It means they care enough about your product to help you improve." [9]
  4. "Take risks and enjoy the ride." [9]

Learnings:

  1. Three Types of Products: He categorizes products into three types: those that are a slight improvement, those that reduce a lot of friction by combining existing functionalities, and those that are truly novel. The more novel the product, the more leniency you have on the user interface's "magic." [3]
  2. User Feedback is a Gift: Both positive and negative feedback are valuable because they show that users care enough to engage with your product. [9]
  3. Iteration Speed is a Competitive Advantage: The ability to quickly iterate on a product based on user feedback is crucial for startups. [9]
  4. Focus on the User Experience: The success of his first startup, Chime, was largely due to its focus on creating a "neat user experience." [9]
  5. The Importance of Onboarding: A slick and easy onboarding process is critical for user adoption. [9]
  6. Product Managers are Systems Thinkers: A good PM is not just a feature-shipper but a systems thinker who can see the bigger picture and make strategic bets. [10]
  7. A Metric-Driven Approach Removes Emotion: Using metrics and results helps teams to objectively analyze their work and make better decisions. [10]
  8. Balance Big-Picture Strategy with an Eye for Detail: Exceptional product managers can set a long-term vision while also paying close attention to the small details of execution. [10]
  9. Start with a Specific Browser/Platform: When building Chime, they started with Chrome because of its development support and active web store, demonstrating the value of focusing on a single platform initially. [9]
  10. The Power of Transparency: Being open with users builds trust and a stronger community around your product. [9]

On Career and Personal Growth

Ananta's journey offers several lessons on navigating a career in the tech industry.

Quotes:

  1. "There's no plan... everything I do... is just a little bit of like serendipity and... and luck and just you know kind of rolling along as kind of like life takes you through like different like chapters." [1]
  2. "I had no clue how to build a company... and that kind of ended up working out." [1]
  3. "The real big magical moment for me was like look I can put in input ABC and there's no like confirmation from the world that like as you put in ABC anything is going to happen but at some point there is like a result." [1]
  4. "I really didn't want to... work in Tech... or or investing you know for a while I like built a camper van and I was like kind of like drive around the US in like a van and just like chill." [1]

Learnings:

  1. Embrace Serendipity: Don't be afraid to deviate from a master plan. Some of the best opportunities arise from unexpected turns and a willingness to explore different paths. [1]
  2. The Value of Taking a Break: Stepping away from the intensity of the tech world can provide new perspectives and clarity on what you truly want to do. [1]
  3. You Don't Need to Have it All Figured Out: Ananta started his first company without knowing how to build one. The key is to start and learn along the way. [1]
  4. Persistence Pays Off: Even when it feels like you're not making progress, continuing to put in the effort will eventually lead to a result. [1]
  5. If You Can't Get a Job, Create One: When he couldn't get a job at a VC fund, he decided to start his own, demonstrating a proactive and entrepreneurial approach to career development. [1]
  6. Your Operator Experience is Valuable: His background as a founder and PM became his unique selling proposition as an investor.
  7. Continuously Learn and Adapt: He spent a year learning from other funds before launching Roach Capital, showing a commitment to continuous learning. [6]
  8. Invest in Yourself: By investing his own capital first, he demonstrated his commitment and belief in his own abilities as an investor. [4]

Learn more:

  1. Best viral founder tweets - Tweet Hunter
  2. Roach Capital's Fahd Ananta | Angel S6 E6 + OK Boomer: Dive Chat | E1390 - YouTube
  3. Backing unassailable founders with Fahd Ananta, Investor @ Roach Capital - YouTube
  4. Fahd Ananta — Clarity
  5. Angel Investing Approach to Public Markets - Jay Vasantharajah
  6. Roach Capital closes $6.4 million CAD for first fund from prominent VCs, Shopify execs
  7. Fahd Ananta - Github, LinkedIn, Twitter - Clay.earth
  8. The Mentorship Spotlight - Apple Podcasts
  9. Our journey with Chime | by Fahd Ananta - Medium
  10. Jonathan Zhao - Early Shopify PM | Now Building at Instacart Ads