Nightlife Disruptor Turned Deep Tech Visionary

Discover how to craft pitches that resonate, build lasting LP relationships, avoid fundraising missteps, and leverage Shane Neman’s barbell strategy to attract the right investors

Shane Neman and I are the same age, and we share a surprising geographical connection from our childhoods. Neman grew up in Great Neck, New York, while I spent most of my weekends as a kid just 15 minutes away at my grandfather's house.

This serendipitous overlap adds a personal layer to our conversation. Neman shared his journey from being a bootstrapped entrepreneur to running a successful family office. Unlike many venture capitalists, Neman’s companies were not venture-backed, but he achieved big exits that underscore the power of bootstrapping and customer funding. He now leverages his experiences as a founder to shape his investment strategies, providing valuable lessons for fund managers and investors alike.

Entrepreneurial Journey

"I dropped out of med school," Neman recalled, "because my high school friend, who was working at Goldman, convinced me that programming and entrepreneurship were the way to go." This pivotal moment led Neman to co-found a platform akin to an early Microsoft 365 during the dot-com boom.

After the bust, Neman pivoted: "I noticed nightclubs were being run on pen and paper," he said. "I built software to solve that problem, which became like the Toast for nightclubs."

His entrepreneurial spirit led him to innovate further with SMS marketing in 2005—3 years before Twilio existed.

"I figured it out, built an alpha version, and sent out a text message. The rest is history." EZ Texting, the business that emerged from this innovation, was eventually acquired by strategic acquirer that was backed by Morgan Stanley.

Transition into Investing

After exiting EZ Texting, Neman decided to focus on investing. "I didn’t want to be a founder again. I wanted to learn how to not suck at investing."

I think you understand why I spend a lot of time interviewing New Yorkers. They talk like me, and they’re some of the only people who don’t make weird faces when I drop profanity on a Zoom call.

He taught himself the fundamentals, passed the Series 7 exam, and started networking with other family offices. "It was a steep learning curve," Neman admitted, "but I knew I needed to immerse myself in different asset classes."

Affiliate Disclosure

In today’s article, we’ve begun using Amazon affiliate links (#ad) to point to books written by our interviewees. Going forward, you’ll be seeing a lot more books on finance, investing, and investor relations. If you purchase a book through one of these links, we may earn a small commission at no additional cost to you. This helps us continue to bring you high-quality content.

A Quick ReadOver on Neman’s Book

In his book Nightlife Lessons: How I Conquered the Business of Partying with Tech and a Glimpse into Its Future, Neman delves into three major themes:

1. Integrating Technology into Nightlife: How innovations like e-ticketing systems and digital databases transformed the nightlife industry.

2. Entrepreneurial Resilience and Adaptability: His lessons on learning from setbacks and adapting to market changes.

3. The Future of Nightlife with Emerging Technologies: How he’s exploring AI and digital platforms to enhance customer experiences.

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Here’s what’s in the subscriber-only section below:

What You’ll Learn in the Subscriber Section

Dive deeper into Neman's strategies and insights:

• Investing Strategy: Learn about Neman’s unique barbell approach, balancing deep tech investments with timeless assets.

• How to Work with Investors Like Neman: Practical advice on transparency, LP engagement, and crafting winning pitches.

• Mistakes to Avoid: Discover the most common pitfalls fund managers make and how to steer clear of them.

• Emerging Trends: Insights into the future of deep tech, healthcare innovation, and humanoid robotics.

• Lessons from Top Mentors: How mentorship shaped Neman’s journey and can influence yours.