By Michael McCarthy By Michael McCarthy | October 20, 2023 | People, Feature,
Go-to VC Tim Draper doesn't wear a cape, but his penchant for investing in young entreprenuers and startups makes him Silicon Valley's Superman.
Tim Draper, founder and managing partner of Draper Associates
People who live and work in Silicon Valley will say they hear it at parties, Friday night high school football games, in line at Trader Joe’s and even when driving down Sandhill Road with the windows closed. It’s the steady thrum of promise. And that promise is a mashup of life-altering ideas, unbridled ambition and enough hope to sustain hundreds of sleepless nights and nailbiting days.
Tim Draper, the founder and managing partner of Draper Associates (draper.vc), hears the thrum. In fact, he lives for it.
The venture capitalist with a billionaire’s Midas Touch has led early-stage funding for companies like Tesla, Hotmail, Skype, Baidu, SpaceX, Twitch, Cruise, Carta, Webflow, Robinhood, Coinbase and 15 other unicorns at the seed stage. His company has funded startups from 60 different countries.
Draper loves the buzz of Draper University.
I ask Draper, a Stanford and Harvard Business School alum, what it feels like to be a legend in the valley. “Wait a second—legend? Don’t you have to be dead to be a legend?” he laughs. “How about a living legend instead?”
Given how much money is at stake for any venture Draper Associates backs, the 6-foot, 4-inch investor seems at ease in any situation. The firm thrives on its entrepreneur-friendly reputation and how it supports startups through thick and thin. “My father gave me the best business advice, and his father gave it to him: It doesn’t matter who’s buying or selling; it’s the personal connection that matters. That’s worked pretty well for us,” says Draper, listed as one of the top 100 most powerful people in finance by Worth magazine; he’s ranked seventh on the Forbes Midas List and is the top 50 most influential Harvard alum. Global Guru listed Draper as one of the top 30 Startup Gurus in the world.
The Draper family has some history in Silicon Valley, long before the region’s moniker stuck. In 1957, Draper’s father, General William H. Draper, became the Bay Area’s first venture capitalist when he launched Sutter Hill Ventures. Draper Associates took off in 1985, and Draper’s three children (Jesse, Adam and Billy) kept the family tradition alive by starting Halogen Ventures, Boost VC and Path Ventures. His children are part of Meet the Drapers, now in its fifth season. The show casts a wide net worldwide to find incredible business ideas and the equally incredible entrepreneurs behind each one. It interviews 30 startups each season, and the show now has 70 million digital followers.
The program is a fascinating diversion from Draper Associates; the ever-evolving empire also includes Draper University (draperuniversity.com), which educates young entrepreneurs from 102 different countries; Draper Startup House (draperstartuphouse.com), a global network of hostels; the Draper Hero Institute (draperhero.org), a platform for freedom and trust; and global Draper Venture Network (drapernetwork.com).
When Draper hangs out for his interview and photoshoot at Draper University, he’s in constant motion, noting that he played pickup basketball, his favorite sport, the day before. “I had quite a game and kind of took it over for a while—scored three buckets in a row—until I let the other guys have a little fun,” he says, grinning. We photograph him in one of the retro phone booths at Draper University, which buzzes with its leader’s energy. The building features large Batman, Robin and Power Ranger lookalike murals; the latter has a thought bubble that reads, “Let’s break stuff!”
This could be Draper’s motto, even in a jittery market. “This is a bear market,” he says. “The entrepreneurial tourists are gone. Now, the real entrepreneurs are here. Artificial intelligence is transforming everything. Robotics are starting to be valid. Space is opening in a big way. Healthcare is exploding. Computational biochemistry is changing how we produce drugs, and the FDA is about to approve a stem cell drug that will help with cures and will lower the overall cost of medicine. It’s an amazing time. I also think decentralizing government will help entrepreneurs create more value through their ideas.”
What early-stage investment did Draper make that most people didn’t believe in?
“Tesla. Everybody with any brain said we’ve gone 50 years without a car company succeeding. Still, we backed it. It’s the most unusual investment we have made. And it was an enormous risk because car companies are capital-intensive, and going up against the big three automakers was a big challenge.”
His eyes sparkle when retelling the story, likely for the millionth time. Amid the brainy fun factory of Draper University and the high-wire media landscape of Meet the Drapers, the man is having fun. So, it seems silly to ask him about retirement. I ask anyway. Draper doesn’t miss a beat. “Oh no. This is too much fun. And it’ll keep going forever,” he says. “Every time I make a decision, it’s not for the short term—it’s for centuries from now.”
Not all Supermen wear capes, but some would look damn good in one.
Photography by: TRACY EASTON