Invest Like the Best with Patrick O'Shaughnessy Episode: Rampton Naimi - Building Abstract - [EP.435] Release Date: July 29, 2025
In this illuminating episode of "Invest Like the Best," host Patrick O'Shaughnessy engages in a deep and multifaceted conversation with Rampton Naimi, the founder of Abstract Ventures. Rampton shares his unconventional journey from running a hedge fund straight out of high school to building a $2 billion assets-under-management venture firm. The discussion traverses various domains, including art collecting, early-stage investing, portfolio construction, and the dynamics of the venture capital ecosystem. Below is a comprehensive summary capturing the essence of their conversation.
1. Introduction to Rampton Naimi and Abstract Ventures
[03:45]
Patrick opens the conversation by highlighting Rampton's impressive track record with Abstract Ventures, noting early investments in notable companies like Rippling and Solana. He underscores Rampton's unique path, which includes filing for bankruptcy at 24 and leveraging platforms like AngelList to bootstrap his way into the venture capital scene.
2. Art Collecting: Lessons for Investing
[06:00] – [11:23]
Rampton delves into his passion for art collecting, emphasizing how his experiences in the art world have informed his investment philosophy. Influenced by mentors like Michael Ovitz and Stuart Peterson, Rampton learned to identify and cultivate relationships with emerging artists and galleries. He draws parallels between the art and venture capital worlds, particularly in how both sectors rely on recognizing and supporting potential power-law outcomes.
Notable Quote:
"There is an overwhelming number of parallels between the venture world and the art world." [06:30]
3. Building Abstract Ventures: From Seed to Success
[28:37] – [40:22]
Rampton outlines the genesis of Abstract Ventures, detailing his transition from a hedge fund manager to a seed-stage venture capitalist. He explains how he identified that multi-stage venture firms were outperforming dedicated seed funds in spotting power-law companies. By focusing on co-investment alongside top-tier firms like Sequoia and Andreessen Horowitz, Rampton was able to establish Abstract as a formidable player in the seed funding landscape.
Notable Quote:
"If you eliminate Uber and Roblox from the equation, it's close to impossible to identify power-law companies in seed rounds led by dedicated seed funds." [29:03]
4. Portfolio Construction and Investment Philosophy
[40:20] – [55:10]
Rampton shares his approach to building and managing Abstract’s portfolio. Emphasizing ownership stakes, he aims for around 10% ownership in each company, allowing for significant upside without overcommitting resources. He also discusses his preference for dilution-sensitive founders who maintain high equity stakes, leading to more efficient and motivated teams.
Notable Quote:
"I want to own 8 to 10% of 60 companies at seed and maintain that 10% ownership in the best 10 of those companies through Series B." [61:13]
5. Engaging with Startups: The Investment Process
[53:13] – [74:34]
The discussion shifts to Rampton’s meticulous process for engaging with and evaluating startups. He typically conducts three to five meetings with a founding team, supplemented by extensive back-channel research. Rampton emphasizes the importance of proving a founder's exceptionalism, resilience, and their ability to pivot effectively.
Notable Quote:
"Seed Stage investing, at least for us, is very momentum driven. I want to build a portfolio of 60 high momentum companies, hope that three to five of them escape Velocity and become amazing companies." [48:51]
6. Winning Deals and Supporting Founders
[63:38] – [77:11]
Rampton discusses his firm’s strategy to be the most trusted seed partner for founders. By managing the fundraising process internally and maintaining strong relationships with top-tier venture firms, Abstract enhances founders' negotiating power in subsequent funding rounds. This approach not only streamlines the investment process but also ensures better terms for the startups.
Notable Quote:
"The number one thing that I look to from founders is prove to me that you're exceptional." [55:30]
7. Relationship with Limited Partners (LPs)
[105:36] – [109:07]
Rampton elaborates on Abstract’s robust LP base, which includes prestigious endowments, foundations, and notable industry leaders. He distinguishes between imaginative LPs who seek alpha through innovative strategies and more traditional LPs who prefer established venture practices. Abstract’s ability to deliver superior portfolio construction and leverage relationships with top-tier venture firms makes it an attractive option for discerning LPs.
Notable Quote:
"If you look at our fund, if there's overlapping companies in our fund with any other fund they have in their portfolio 94% of the time, they have orders of magnitude more look-through ownership to that company through our fund than they would through one of the others." [108:00]
8. Challenges and Insights in the Venture Ecosystem
[109:13] – [113:57]
The conversation turns to the current state of the venture capital ecosystem. Rampton expresses concerns about the rapid scaling of venture funds and the impact of large private companies on liquidity and productivity. He highlights the emergence of continuation vehicles as a potential solution for providing liquidity without compromising company growth.
Notable Quote:
"Venture is the only asset class where historical results are somewhat indicative of future performance." [75:46]
9. Personal Background and Resilience
[83:11] – [101:49]
Rampton shares his personal journey, from his Iranian immigrant parents instilling a strong work ethic to his early ventures in stock trading and hedge fund management. He candidly recounts his bankruptcy at 24 and how it shaped his resilience and determination. His experiences underscore the importance of hard work, adaptability, and the willingness to learn from failures.
Notable Quote:
"If you prove that to earn your seat at the table, no one actually cares about anything else. You're at this seat for a reason and we'll leave it at that." [98:23]
10. Closing Thoughts: Building a Brand and Future Outlook
[112:23] – End
Rampton reflects on the importance of building a strong brand for Abstract Ventures. He acknowledges the challenges of competing with established firms but remains optimistic about Abstract’s trajectory. Emphasizing consistency, reputation, and exceptional deal-making, Rampton envisions a bright future for Abstract as it continues to support and invest in transformative startups.
Notable Quote:
"Venture is hard to scale as an asset class. Which is why a lot of LPs look at these large platform funds and say, if I could just invest in these four GPs, that’d be way more appealing than investing in 16 of them." [77:11]
Key Takeaways
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Interdisciplinary Insights: Rampton leverages his art collecting experiences to inform his venture capital strategies, emphasizing the importance of spotting and nurturing potential power-law outcomes.
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Strategic Portfolio Construction: By maintaining significant ownership stakes and focusing on dilution-sensitive founders, Abstract Ventures ensures effective portfolio management and maximized returns.
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Efficient Investment Process: Rampton prioritizes speed and thoroughness in evaluating startups, conducting numerous pitch meetings weekly to build a comprehensive frame of reference.
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Strong LP Relationships: Abstract’s success is partly due to its high-quality LP base and the firm’s ability to demonstrate superior portfolio construction and deal access.
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Resilience and Adaptability: Rampton’s personal journey underscores the value of resilience, learning from failures, and maintaining a strong work ethic in achieving business success.
This episode offers a wealth of insights into the intricacies of building a successful venture capital firm, the interplay between art and investing, and the personal attributes that drive entrepreneurial success. Rampton Naimi’s story serves as an inspiring blueprint for aspiring investors and entrepreneurs alike.