After his NFL career, four-time Super Bowl champion Joe Montana had no intention of becoming an investor, but his San Francisco 49ers teammates persuaded him to try it out.
In an interview on Thursday, the legendary quarterback recounted how former offensive tackle Harris Barton and former safety Ronnie Lott approached him with a proposal to launch a “fund of funds.”
“Since we were surrounded by the individuals leading Sequoia, Kleiner, Excel, all the top-tier funds, we aim to use our friendships to gain access,” Montana stated.
Silicon Valley and the NFL will intersect once more on Sunday, as the Super Bowl is set to take place in San Jose, the current home of the 49ers’ games.
When Montana first ventured into investing, he and his associates initially raised $15 million, and the fund expanded from there, enabling them to enter leveraged buyout funds, hedge funds, and real estate funds, he noted.
However, Montana later relocated two hours from San Francisco to the Napa wine country, prompting him to reduce his involvement in investing.
Subsequently, he connected with angel investor Ron Conway, as their children attended the same school. The cofounder of SV Angel introduced Montana to tech incubator Y Combinator and urged him to establish his own fund, Liquid 2, in 2015.
Conway provided guidance to Montana, who shared a crucial lesson he learned from the legendary Silicon Valley investor.
“Everyone believes it’s always about the product,” he told CNBC. “But when we invest at an early stage, it’s mostly about the people, and what we’re betting on are the founders.”
Montana also mentioned that his work with Liquid 2 is more engaging than the fund of funds, as his current role demands greater involvement with his portfolio companies, particularly during their early stages.
For his part, [he] noted that Liquid 2 is now as large as SV Angel, adding that he and Montana frequently invest together.
“Due to his friendly personality and his brand, he can gain entry into excellent syndicates and maintain long-term relationships,” he stated.
According to Worth, Liquid 2 has invested in more than 800 companies and was an early supporter of GitLab, Rappi, Anduril, Pipe, and others.
Though Montana didn’t want his athletic fame to define his fund, he still uses his professional sports experience to aid his investing. He mentioned that NFL coaching legend Bill Walsh taught him how to build a strong team. Montana also learned to recognize similarities between great founders and top athletes.
“It all comes from what’s within them and their motivation to succeed,” Montana told Worth.