10 Lessons on Building, Pivoting, and Investing from Ellis Fried

In Season 3, Episode 2 of Turning Pro, co-hosts Ben Sharf and Adrian Alfieri sit down with Ellis Fried, Vice President at Vanterra Ventures. Ellis recounts his early entrepreneurial ventures, starting with Smpl, a snack brand born out of his time at the University of Michigan. He shares how navigating the challenges of building a consumer brand, particularly during the pandemic, prepared him to transition into venture capital.

Now an investor, Ellis draws on his operational background to provide unique support to founders, particularly in sectors like digital health and branded products. In this episode, Ellis breaks down the key differences between the relentless pace of startup life and the more deliberate rhythm of venture investing.

Find Season 3, Episode 2 of Turning Pro on Apple, Spotify, or YouTube.

10 Key Lessons We Learned from Ellis Fried:

1.  The Value of Operational Experience: Ellis emphasizes the empathy and understanding he gained as a founder, which helps him support portfolio companies more effectively as an investor.

2. Adaptability is Key: Pivoting Smpl during the pandemic taught Ellis the importance of flexibility in both product development and funding strategies.

3. Empathy Fuels Better Investing: Understanding the emotional and logistical challenges founders face allows Ellis to build stronger relationships and provide actionable support.

4. Focus on Capital Efficiency: Ellis advises founders to be realistic about burn rates and milestones, especially in today’s cautious funding environment.

5. Raise with Flexibility: Founders should avoid rigid funding expectations and let the market guide valuation and round dynamics.

6. Support Comes in Many Forms: Ellis spends significant time assisting portfolio companies with mergers and acquisitions, showcasing the diverse ways investors can add value.

7. Pace Yourself: Ellis highlights the contrast between the constant sprint of running a startup and the steadier, long-term perspective required in investing.

8. Know Your Niche: Vanterra Ventures’ thematic approach - focusing on consumer health sectors like digital health and enabling technologies - provides clarity and expertise.

9. Build a Routine: Ellis’s daily structure, from morning workouts to consistent work hours, anchors his personal and professional success.

10. Celebrate the First Win: Ellis’s “Turning Pro” moment was securing his first investment check. This milestone made subsequent successes feel achievable.

Ellis Fried’s journey from startup founder to venture investor is a testament to the value of resilience, adaptability, and thoughtful decision-making. Whether you're a founder navigating today’s funding climate or an aspiring VC, Ellis’s story offers invaluable takeaways.

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