Consumer VC Podcast: Holiday Highlights with Mike Ghaffary (Canvas VC)
Episode Date: December 23, 2022 | Host: Mike Gelb | Guest: Mike Ghaffary, General Partner, Canvas Ventures

Episode Overview

In this special "Holiday Highlights" episode, host Mike Gelb sits down for a second time with Mike Ghaffary, General Partner at Canvas Ventures. Together, they explore a central question: What is the next big consumer technology platform after mobile? Ghaffary draws on his experience as an entrepreneur and investor to examine candidates like Web3, VR/AR, and more, discussing their promise, pitfalls, and what founders and VCs should watch as they look to the next technological paradigm.

Key Discussion Points & Insights

1. The Search for the Next Consumer Platform (01:37–06:01)

• Main Platforms in Consideration: Web3, Virtual Reality (VR), Augmented Reality (AR), Metaverse, AI & Big Data, Regulatory tech, Voice, and even the Car.
• Web3 as a Top Candidate: Ghaffary notes that while entrepreneurial energy is pouring into Web3, much of its application is currently B2B, not consumer-facing.
  • “The promise of web3 is you control your own content, you own it, you have the rights... It's truly decentralized.” – Mike Ghaffary (04:35)
• Challenges with Emerging Platforms: VR hasn't achieved the broad user base necessary to attract consumer app developers. Other candidates like voice and reg tech have yet to reach "platform" status at consumer scale.

Timestamped Highlights:

• Web3 introduction and platform cycles: 01:47–06:01
• VR/metaverse as possible next waves: 05:17–06:01

2. Web3: Potential and Current Limitations (06:01–10:41)

• Consumer Impact Questioned: Unlike mobile, where use-cases were obvious, Web3's consumer-facing benefits remain elusive.
  • "If you ask the average consumer, 'is there some cool new Web3 application… that’s changed the way you use technology?' I just don’t think that’s [the case]." – Mike Ghaffary (09:02)
• Creator Economy Emphasis: Most innovation is on creator-focused apps, with experiments in ownership, tokens, and direct audience relationships—but nothing yet with iPhone-level consumer impact.

Timestamps:

• Web3 and potential shifts in user habits: 06:23–10:14

3. Should Web 2.0 Companies Embrace Web3? (10:14–12:30)

• Comparison to Mobile Shift: The move from desktop to mobile was a clear, hardware-driven transition; Web3 is more opaque—driven by protocols and economic models.
• Advice: Every company should consider a Web3 strategy because new entrepreneurs could disrupt incumbents, but the "right" strategy is less obvious and there will be misfires.
  • "If you're not thinking about how Web3 could reinvent your business, I guarantee you some smart young person is..." – Mike Ghaffary (11:34)

4. VR/AR’s Revival and Their Platform Promise (12:30–16:09)

• Growing Install Base: Oculus and similar devices have built user bases, but real-world usage and killer apps lag.
• Preference for Augmented Reality: AR could augment rather than replace real-world experiences, potentially leading to broader adoption.
  • "That’s one challenge. Like VR has a lot of promise, but it does take you out of the real world. I think that’s why augmented reality... has a lot of excitement." – Mike Ghaffary (13:45)

Timestamps:

• VR/AR investor interest: 12:49–14:37

5. Incumbents vs. Startups in Platform Creation (14:37–19:38)

• Facebook/Meta’s Platform Ambitions: Incumbents like Facebook entering VR may signal tipping points but come with ecosystem-building challenges. Ghaffary compares Apple’s app platform success to Facebook’s earlier, less successful attempts.
  • "Are there going to be big companies being built [on Facebook’s new platform]? ... Apple did help launch not just an ecosystem, but a whole global industry of apps." – Mike Ghaffary (17:00)
• Web3’s Alternative Platform Path: Advocates see Web3 as an opportunity for decentralized, "bottoms-up" platforms, but it’ll need a compelling rallying cry and massive alignment.

Memorable Moment:

• Discussing the rapid, decentralized fundraising by ConstitutionDAO as evidence of new forms of collective action (18:55).

6. The Power of Founder-Led Paradigms (19:38–22:21)

• Elon Musk vs. Zuckerberg: Hardware innovations like Tesla make paradigm shifts tangible, but most founder-led tech empires aren't platforms per se.
  • "Elon Musk ... he puts this piece of hardware and you drive it and you're like, wow. We didn't think electric cars were possible at scale ... now it's happening." – Mike Ghaffary (21:09)

7. Overhyped “Next Big Things” & Current Realities (22:21–25:11)

• Voice and Chatbots Not the Next Platform: Ghaffary expresses skepticism about voice and chat apps achieving iPhone-level impact.
  • "One that I was always skeptical about was the voice devices ... they're a little bit too limited in kind of UI." – Mike Ghaffary (22:34)
• VR’s Multiple “False Starts”: VR repeatedly feels on the cusp but hasn’t had its App Store moment yet.

8. Advice for Consumer Tech Founders (25:11–27:44)

• Embrace a Beginner’s Mindset: Fresh, even naïve, perspectives are valuable—what didn’t work in the past might work now.
  • "Take your fresh look and open minded view and the fact that you're not jaded by what's happened before as a huge advantage that you have...think with a blank slate." – Mike Ghaffary (25:35)
• Recruit Missionaries, Not Mercenaries: A founder must inspire and attract those passionate about the mission—not just those motivated by money.
  • "Your jobs as a founder is communicating that vision ... and then goal number two is ... don’t run out of cash." – Mike Ghaffary (27:09)

Notable Quotes & Memorable Moments

• On Decentralization & Web3:
  • "The promise of web3 is you control your own content, you own it, you have the rights...It's truly decentralized." — Mike Ghaffary (04:35)
• On Incumbents Entering Emerging Platforms:
  • "When the incumbents start pushing it and really saying, like, this is the time, we should all take that seriously." — Mike Ghaffary (16:09)
• On Skepticism Toward Overhyped Technologies:
  • "One that I was always skeptical about was the voice devices ... they're a little bit too limited in kind of UI." — Mike Ghaffary (22:34)
• On the Power of Vision in Leadership:
  • "You're recruiting missionaries, not mercenaries ... If you paint a clear vision of why you're changing the world ... you can then convince people to come work for very little." — Mike Ghaffary (26:46)

Key Segment Timestamps

| Topic/Segment | Timestamp | |-----------------------------------------------|--------------| | Introduction & Episode Theme | 00:12 | | Candidates for the next platform | 01:37–06:01 | | Web3 opportunities and gaps | 06:01–10:41 | | Web3 vs. Mobile paradigm shifts | 10:41–12:30 | | VR/AR as platform and AR’s potential | 12:30–16:09 | | Incumbent (Meta/Facebook) vs. Startup | 16:09–19:38 | | Founder-led innovation (Musk vs Zuckerberg) | 19:38–22:21 | | Overhyped narratives: Voice, Chat, VR | 22:21–25:11 | | Advice for founders | 25:11–27:44 |

Closing Thoughts

Mike Ghaffary sees no clear successor to mobile yet, though entrepreneurial energy is heavily concentrated around Web3, with AR/VR as perennial contenders. For founders, he emphasizes the importance of originality, resilience, and the missionary mindset—pushing forward with bold visions even amid skepticism and market uncertainty.

End of Summary