Walter Kortschak, a billionaire venture capitalist, has had a successful career thanks to his focus on duration and persistence in investing. With homes in Aspen and London, as well as property in Kauai, Kortschak’s assets are now valued at $1.6 billion. His career began in the tech sector, where he worked for a computer graphics startup before transitioning into venture capital at Crosspoint Venture Partners and later Summit Partners, where he made significant investments in companies like McAfee and E-Tek Dynamics.
During his time at Summit Partners, Kortschak made a name for himself in the technology sector, landing on Forbes’ Midas List of top venture capital investors from 2005 to 2009. He left Summit in 2010 to become an advisor and eventually returned to early-stage investing through his personal vehicles, Firestreak Ventures and Kortschak Investments. Through these, he has invested in companies like The Trade Desk, Lyft, Palantir, and Twitter, as well as early-stage AI companies like OpenAI and Anthropic.
Kortschak believes that the current investment landscape requires patience and discipline, especially in the face of an AI-driven gold rush. He warns against the dangers of FOMO, or fear of missing out, and stresses the importance of being selective in investments and focusing on innovation and unique founders. Kortschak’s greatest triumph as an investor was E-Tek Dynamics, a pioneer in the optical components sector, which Summit invested $108 million in and ultimately sold for $18.4 billion.
However, not all investments have been successful for Kortschak. He cites an investment made in 2015 as his biggest disappointment, where the company raised too much capital at a high valuation, leading to distractions and ultimately shutdown. Despite this, Kortschak continues to learn from his experiences and the guidance of his mentors, emphasizing the importance of having a prepared mind and being ready to defend one’s position in investments.
Kortschak recommends two books for investors to read: “Bad Blood” by John Carreyrou, which details the rise and fall of Theranos and its founder Elizabeth Holmes, and “The Innovator’s Dilemma” by Clayton Christensen, which explores why established market leaders can become vulnerable to disruptive start-ups. Through his successes and failures, Kortschak emphasizes the importance of patience, discipline, and a focus on innovation in the ever-changing world of investing.
