"Turpentine VC" | Venture Capital and Investing · Erik Torenberg

E86: Inside Mischief VC's Evolution with Zach Perret and Lauren Farleigh

·46 min·2 clips

Lauren says the best people on the cap table were other founders who had done the 'zero to one journey.'

1. Turpentine VC’s episode with Mischief VC focuses on how Lauren Farleigh and Zach Perret built a founder-led early-stage firm. 2. Lauren Farleigh is a co-founder of Mischief VC, and Zach Perret is Plaid’s co-founder and CEO, so both speak from operating experience rather than professional investing backgrounds. 3. The episode asks what changes when founders turn their own startup experience into an institutional venture model. 4. Lauren says Mischief started after she and Zach realized that the best people on a cap table were often other founders who had already done the 'zero to one journey.' 5. Zach says Plaid’s early angel investors had founded big companies and were willing to take calls about hiring, firing, and partner problems. 6. They describe those calls as transformational because one conversation at a critical inflection point can change a company’s trajectory. 7. Lauren says Mischief launched Fund One in 2021 and later grew to Fund Two after adding two more partners. 8. The firm now manages an $80 million fund and describes itself as generalist within software. 9. Lauren says Mischief does pre-seed, seed, and leading rounds, with check sizes generally between $1 million and $4 million. 10. Zach says the firm avoids capital-intensive businesses and companies that hold inventory because dilution matters for returns. 11. Zach describes Mischief’s sourcing as 'hyper people-driven' and says each GP brings a massive Silicon Valley network built over 15 years or more. 12. He says the firm wants to identify the best people it knows and follow them when they are ready to start companies. 13. The firm also hosts structured dinners with 10 to 12 people and asks guests who should be invited next. 14. Zach says Mischief sends quarterly updates to portfolio companies so founders can see what the firm is thinking and how it can help. 15. Lauren says Fund One was a proof point because Mischief could place $200,000 checks and still maintain quality of founder and company. 16. She says Fund Two required a different motion because the fund size grew, the market changed, and the firm needed to learn how to lead rounds. 17. Zach says the move from angel to institutional investing was debated, but the goal was always to scale checks and deepen relationships with entrepreneurs. 18. The conversation stays practical and conversational, with both guests alternating between strategy, anecdotes, and specific operating details. 19. Listeners interested in seed fund construction and founder-led investing will get the most from this episode. 20. Listeners expecting a consumer-tech product deep dive will probably skip it.

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