20VC: Max Altman on The New Seed War: Can Anyone Compete with Sequoia and A16z | Leaving $2BN on the Table with Reddit | Lessons From Backing Rippling at $25M Post | Why Climate Tech Is a Mirage and Disaster

In this episode of 20VC, Max Altman, co‑founder of Saga Ventures, reflects on the evolving "seed war" that pits emerging funds against entrenched giants like Sequoia and a16z. Drawing from his Midwestern roots in St. Louis and a stint in San Francisco, Altman argues that humility and deep relationships can offset the aggressive, deal‑chasing culture of coastal VCs. He highlights how his early exposure to unicorns such as Reddit and Rippling shaped a high‑performance benchmark, prompting him to build a fund that competes on founder quality rather than brand prestige.

Altman’s investment thesis is strikingly price‑insensitive: he backs founders he trusts, even at premium valuations, believing that a strong team will generate outsized returns. He cites his time at Zenefits and the early Rippling round—invested at a $25 million pre‑money valuation—as proof that intuition often trumps market signals. The conversation underscores the importance of sales‑driven growth, founder intuition, and the willingness to ignore conventional pricing norms. Altman also critiques the hierarchical structures of many VC firms, noting that flat, equal‑partner models better align incentives and foster candid decision‑making.

Looking forward, Altman shares lessons from his Hydrazine fund, where the biggest misstep was failing to follow on winning portfolio companies. He positions Saga Ventures to avoid that pitfall by maintaining a lean partnership and focusing on 3‑10% ownership stakes in transformative founders. For aspiring investors and founders alike, the takeaway is clear: prioritize genuine relationships, back exceptional teams regardless of price, and structure firms to reward long‑term value creation over short‑term check‑writing.