Why VCs Love Layer Cakes: Startup Growth with Tyler Sosin of Menlo Ventures
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What do venture capital, layer cakes, and early-stage startups have in common? Tyler from Menlo Ventures breaks it all down. With 15 years in the VC game, Tyler’s focus on FinTech and vertical SaaS has led him to develop the “layer cake” approach—building businesses with stacked, sustainable revenue models. He dives into the importance of long-term customer retention, adding products post-acquisition, and spotting early product-market fit.
But is the layer cake model the best strategy? While Tyler champions sustainable, customer-focused growth, not everyone’s convinced. Are traditional growth models better at managing risks like customer dependency and market volatility? Tune in to hear Tyler’s take on startups, Menlo’s hands-on support for founders, and why he thinks "flat revenue cohorts" are the key to long-term success.
If you’ve ever wondered how venture capitalists spot the next big thing—or how "beautiful layer cakes" fit into all of this—this episode has you covered.
Topics Covered:
- The "layer cake" business model for scaling startups.
- FinTech and vertical SaaS investment strategies.
- Menlo Ventures' hands-on approach to building great teams.
For: Founders, aspiring VCs, and anyone curious about how startups grow—or fail.
Connect with Tyler Sosin here
Connect with Ash Akhan here
Episode References:
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Chapters
1. Intro (00:00:00)
2. Meet Tyler Sosin (00:00:26)
3. What’s a Layer Cake Business Model? (00:02:26)
4. Why Carta Is the Perfect Example (00:04:10)
5. The GoCardless Origin Story (00:06:26)
6. Go-To-Market Lessons from GoCardless (00:10:58)
7. Talent, Culture & Long-Term Startup Growth (00:22:50)
20 episodes