Career Path
Ben Z.: Can you share a bit about your career journey and how it led you to join Databricks Ventures in 2022?
Phil S: Absolutely. My career journey began in investment banking at Morgan Stanley, where I honed my analytical and financial skills. However, I soon realized I wanted to be closer to customers and the products shaping their experiences. That realization led me to The Walt Disney Company, where I focused on strategic planning for their Parks & Resorts business. It was an invaluable opportunity to learn about product strategy and decision-making within a large, complex organization.
From there, I transitioned to a digital health startup, where I led the Strategic Finance team. This role helped me uncover the intersection of my skills and passions, solidifying my interest in strategic growth and innovation. Although I loved it there, I decided to pursue an MBA at Harvard Business School, which set the foundation for my pivot into corporate development and venture capital.
Post-MBA, I joined Salesforce’s M&A team, where I gained experience working in enterprise software and corporate development – learning how to evaluate companies of strategic relevance to drive inorganic growth. Then, in 2022, I brought that experience to Databricks, where I now oversee our M&A and venture investing efforts. Over the past three years, I’ve had the privilege of leading 15+ investments that align with Databricks’ strategy.
Investment Criteria
Ben Z: What criteria do you prioritize when evaluating potential investments?
Phil S: When evaluating potential investments, we prioritize companies that align strategically with Databricks’ mission and ecosystem. We look for category leaders with the potential for rapid growth and the ability to create mutual value through collaboration. A key differentiator for us is our ability to leverage unique insights through our product leadership and partnerships team, which helps us identify standout performers among our partners and ensure our investments are well-positioned to drive impactful outcomes for our customers.
Leveraging Corporate Resources
Ben Z: How does Databricks leverage its corporate resources in the investment process?
Phil S: Our product and engineering teams validate every investment to ensure alignment with Databricks’ standards. Additionally, partnerships data give us an unfair advantage when evaluating which companies in our ecosystem are gaining traction with our joint customers. Finally, the Databricks brand is really strong in the Data & AI space, which gives us tons of dealflow with minimal sourcing efforts.
Impact of Databricks’ Growth
Ben Z: With Databricks’ rapid growth, how does that influence your investment strategy?
Phil S:. Databricks’ rapid growth significantly shapes and enhances our investment strategy. As we scale, we not only expand the strategic value we can bring to our portfolio companies but also deepen our ability to support their growth. This influence extends beyond financial capital—we’re able to leverage Databricks’ robust platform, ecosystem, and market presence to accelerate the success of the companies we invest in.
Additionally, our growth increases the amount of capital we can deploy, enabling us to make more impactful investments in transformative technologies and innovative teams. It also broadens the scope of opportunities we can pursue, allowing us to align with companies that not only complement our ecosystem but also contribute to the advancement of the broader data and AI landscape. This synergy between Databricks’ growth and our investment strategy is a cornerstone of how we create lasting value for our partners and the industry.
Trends in Data and AI
Ben Z: What trends in data and AI are you most excited about?
Phil S: The trends in data and AI right now are incredibly exciting. One area I’m particularly enthusiastic about is the rise of compound AI systems and AI agents. These technologies are transforming the way we approach work by automating repetitive tasks and enabling people to focus on higher-value activities. They hold immense potential to enhance productivity across industries.
In the data space, I’m inspired by how startups are leveraging large language models (LLMs) to simplify workflows for engineers and analysts. This innovation is reshaping AI-assisted data tooling, making it more accessible and efficient. By embedding AI deeply into data processes, these tools are driving faster insights and empowering teams to tackle more complex problems with less friction.
The intersection of these trends is paving the way for a future where AI is not just a tool but an active collaborator, seamlessly integrated into every stage of data and decision-making workflows.
Hands-On vs. Passive Investing
Ben Z: Would you describe Databricks Ventures as more hands-on or passive?
Phil S: As investors, we’re passive—we take no board seats and ask for fairly minimal strategic rights. But as partners, we’re very active, providing portfolio companies with prioritized partnerships and go-to-market opportunities.
Advice for Aspiring VCs
Ben Z: What advice do you have for students aspiring to break into venture capital?
Phil S: My advice for students aspiring to break into venture capital is to focus on developing a specific area of expertise. Whether it’s deep technical knowledge, such as engineering, or a deep go-to-market skillset, having a real area of expertise allows you to bring unique value to portfolio companies.
Venture capital isn’t just about identifying great opportunities—it’s about helping those opportunities succeed. By cultivating expertise, you position yourself as an indispensable partner who can actively contribute to the growth and success of the companies you invest in. Additionally, it’s crucial to stay curious and continuously expand your understanding of emerging industries and trends.
Building strong relationships is equally important. Seek out mentors in the field, engage with founders, and participate in projects or internships that give you hands-on experience. This combination of expertise, curiosity, and connections will set you apart as you work toward a career in venture capital.
Ben Z.: Thank you, Phil, for sharing your thoughts and time. This will be incredibly insightful for the BRV audience.
Phil S: My pleasure.