Terry Doyle, Managing Partner of TELUS Global Ventures, shares insights gained from investing in technology companies since 1999. His experiences through various technology cycles, including the dot-com crash, have shaped his investment philosophy.
The Importance of Timing and Avoiding the Hype Curve
Doyle emphasizes the significance of timing in investing. He believes that the best opportunities arise when investment is low, rather than during periods of widespread hype. "You want to invest when nobody else is investing," he states. Observing market cycles allows one to avoid being caught in investment bubbles.
TELUS Global Ventures: A Corporate Venturing Arm
TELUS Global Ventures operates as the corporate venturing arm of TELUS, a Canadian-headquartered global technology and services business. The company has a portfolio of approximately 90 companies, with about 60% having commercial deals with TELUS. Last year, they conducted around $34 million in business with their portfolio companies.
Valuing Perspective Over Experience
Doyle stresses that age and experience are not necessarily indicators of intelligence or innovative potential. He's found that sometimes, experience can create preconceived notions that limit creativity.
Overcoming Assumptions and Bias
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Often, experienced individuals develop fixed ideas based on past experiences.
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Doyle notes that companies like Google invest significant effort in preventing employees from making assumptions.
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Breaking free from biases allows for genuine innovation and breakthroughs.
Investment in AI-Driven Solutions: Clinia Example
TELUS Global Ventures has invested in companies like Clinia, which has developed an AI-driven optimized search for enterprise customers. This investment has changed the way TELUS thinks about data utilization, ultimately improving patient outcomes. Clinia helps providers give better outcomes to patients. This has influenced both TELUS's internal operations and how its customers view their own data and businesses.
Spotting Societal Shifts and Horizon Investing
A good investor recognizes fundamental shifts in society. Drawing on McKinsey's "Horizon" framework, Doyle describes three investment horizons:
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Horizon 1: Technologies ready for immediate use.
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Horizon 2: Technologies in development.
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Horizon 3: Technologies in the distant future, more akin to fundamental science.
Investing in Quantum Security
TELUS Global Ventures sometimes invests in Horizon 3 companies, even if the business doesn't immediately see the opportunity. Quantum security is a prime example, where the company anticipates future threats and invests early to gain knowledge and prepare for potential commercial applications down the line, even if commercialization is 5-6 years away.
Embracing Mistakes and Fostering Innovation
Doyle encourages his team to embrace the inevitability of mistakes. He emphasizes the importance of:
- Acknowledging mistakes.
- Fixing mistakes.
- Avoiding repeating mistakes.
Creating a culture where mistakes are viewed as learning opportunities fosters a more innovative and less risk-averse environment. This empowers the team to explore options and push the boundaries of technology.
Investing in the Individual: The Founder's Qualities
Doyle believes that the individual, specifically the founder, is the most important factor in investment decisions. He looks for individuals who:
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Demonstrate strong problem-solving abilities.
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Persistently work at challenges, even without immediate progress.
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Possess a level of stubbornness necessary to tackle significant problems.
Ultimately, the goal is to connect smart individuals with the resources to solve significant problems. Helping founders advance on their journey is what he finds most rewarding.
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