Recently I spoke with Mat Sherman, an entrepreneur and podcast host, based in Phoenix, Arizona. Mat’s journey includes launching and running SeedScout, a trail blazing startup that connected founders with a network of venture capitalists, and interviewing almost 1000 high potential early-stage startup pioneers on his podcast Forward Thinking Founders. Mat Sherman reflects on the lessons learned from SeedScout, speaks to the importance of sales and marketing skills in the current entrepreneurial environment, and explains pitfalls and potential positive changes in the VC space. He also emphasizes the value of building your own community if you can’t find one that embraces you, the importance of independent thought and having the courage to back yourself, and the beauty of the pay-it-forward mentorship dynamic to be found in the entrepreneurial ecosystem.
Background and Motivations for SeedScout Launch
Griffin Connolly: Hi Mr. Sherman. Thanks for taking the time to chat with me today. Tell me a bit about your background and how you got interested in entrepreneurship.
Mat Sherman: Of course! I’m happy to be here. So, I’d say my entrepreneurial journey started quite early—back in 8th grade. At the time, I was passionate about music. I wasn’t just making music; I was also selling my own merchandise. I think that was my first real taste of what it means to create something and then find ways to sell it.
Later, when I discovered the world of startups, it just clicked for me. Since then, I’ve built a couple of companies. The first was PubLoft, a company that connected customers with qualified freelance marketers, writers, and other professionals to function as the startups’ plug-and-play marketing department. PubLoft was fortunate enough to get backing from Jason Calacanis. That experience gave me a lot of exposure to how Silicon Valley works and operates.
The second company was SeedScout, which I launched to bridge the gap between venture capital and founders who aren’t based in traditional tech hubs like Silicon Valley. SeedScout helped founders expand their network by facilitating introductions and networking, to make the path to becoming an industry insider easier.
Also, during this time, I started a podcast called Forward Thinking Founders where I interview high potential early-stage founders before anyone has heard of them. I’ve interviewed almost 1000 founders so far. Over the past six years, it’s been the one constant in my entrepreneurial journey.
Griffin Connolly: Take me back to the launch of SeedScout. Where were you at and what motivated you to launch that project?
Mat Sherman: The idea for SeedScout came while I was working at a company called Prenda, which operates in the microschool space locally here in Phoenix. I knew from my time raising capital for PubLoft and from the founders I was speaking with for my podcast, that it was challenging for ‘outsiders’ to raise capital and break into the connected startup fundraising scene. While working at Prenda I started tinkering on the side with different ideas to solve this problem. When COVID hit I noticed a huge shift in the venture capital industry as everything moved to the internet. I realized this shift could open up opportunities for founders outside traditional tech hubs to access funding.
I quit my job at Prenda to start what I originally called Forward Thinking City. The concept was to create Silicon Valley in the cloud. That quickly evolved into SeedScout. I raised $40,000 to get it off the ground—not a huge amount, but enough to keep the lights on for a few months. The goal was to give talented founders a platform to connect with investors, no matter where they were located.
If I got the chance to do it again, I would approach things differently. Maybe I’ll pursue the same idea again with a different model, or maybe I’ll move in a different direction. We’ll have to wait and see what the future holds.
The Role of Community in Entrepreneurship
Griffin Connolly: One of the things I’m really focused on is the community aspect of entrepreneurship. You’ve interviewed almost 1,000 people on your podcast, and SeedScout has a strong community-oriented focus. Can you expand a bit on how you view the sense of community in entrepreneurship and the role it’s played for you?
Mat Sherman: It’s kind of a bittersweet story and not one I talk about often. A lot of my focus on building community comes from being excluded from the ones I tried to break into. For example, I applied to Y Combinator multiple times and got rejected every time. It wasn’t just Y Combinator—I was turned down by other programs in Silicon Valley like On Deck, and Hyper. Pretty much all of them.
It wasn’t because of the ideas I was building, but more about my background. I’m a non-technical founder and graduated from Arizona State University, which doesn’t carry the same prestige as some other schools in the startup world. I understand why, but those rejections made it clear there weren’t any groups I respected that saw me as a peer.
At some point, I realized that if no one was going to open those doors for me, I had to build something for myself—and for others who felt the same way. That’s how SeedScout came to be. I created a new community because no one had created one that worked for people like me.
People often assume my work in helping Phoenix become a thriving startup hub is entirely altruistic, and while that’s a big part of it, the primary reason is that I want to live in a great startup hub, and I live in Phoenix. I’m trying to create an environment that I can thrive in. If I ever moved, I’d probably work toward building the same kind of community wherever I landed.
Moving On from SeedScout: Reflections and Lessons Learned
Griffin Connolly: Recently you moved on from SeedScout. Can you expand on that decision and why you chose to go in a new direction?
Mat Sherman: SeedScout was a challenging venture from the start, and I’d even argue it’s an impossible venture backed company. A company like SeedScout can potentially work if you’re bootstrapped. We raised about $450,000 and peaked at $16,000 MRR (Monthly Recurring Revenue) at the top of the market, but when the market crashed, it exposed some fundamental issues within the company.
I kept pushing for another 2 ½ years post-crash, giving it everything I had, but eventually, I had to face the reality that the model just wasn’t working. Charging founders and investors directly the way we were wasn’t going to build a scalable business. Pivoting again was an option, but at that point, I was balancing a lot in my personal life—I was newly married with a one-year-old son. I had to evaluate my priorities.
The community loved what we were doing, but most people didn’t see the struggles happening internally. Founders always have factors at play that aren’t public, and I had those too. It was a tough decision to shut it down after 4 ½ years, but I knew continuing to fight without momentum or a clear path forward wasn’t sustainable. Sometimes, it’s better to step back and live to fight another day in a different venture, rather than banging your head against the wall indefinitely.
Griffin Connolly: You mentioned earlier that if you could go back, you’d do some things differently. Can you elaborate on that and share what you might have approached differently?
Mat Sherman: Absolutely. Looking back, I think SeedScout made more progress in this space than anyone else, even if we ultimately didn’t succeed. But one major misstep was our funding strategy. I never had more than two months of runway at any point during those four years. I’d raise a round, spend it, then immediately scramble to raise the next one. It was a constant cycle—$20,000 here, $100,000 there—but it never allowed us to make strategic bets or focus long-term.
Another thing I’d change is how I handled outside opinions. Everyone has advice about this space, but few people are as informed as I was. I’ve talked to 1,000 founders and gained unique perspectives from both Silicon Valley and Phoenix. Despite that, I let other people’s opinions outweigh my instincts, which hindered our progress.
If I were to try something similar again with a different model, I’d be much more confident in my vision and tell people to step back when it comes to the core idea. Of course, I’d still seek help with operational aspects, but I’d trust myself more when it comes to the vision and strategy. That’s a hard lesson I’ve taken to heart.
Podcast Motivations, Future Ventures, and Fundraising Insights
Griffin Connolly: So, tell me more about your podcast. Interviewing 1000 founders is impressive. What are your main motivations – are you networking for future ventures, or just trying to create a community?
Mat Sherman: I don’t often share the full story of why I started my podcast because it requires too much context, but I will here. I actually started the podcast as a response to repeated rejection from Y Combinator (YC). After my 6th or 7th rejection, I decided to create a platform for myself, to let myself in. At the outset I interviewed 20-30 YC alumni, which worked well in building my network. That initial effort led to more opportunities, and the podcast became a way to expand my connections.
Over time, the podcast turned into something I genuinely enjoy—a ‘sport.’ I love finding people undervalued by the market, interviewing them, forming connections, and watching them grow. For instance, recently I watched an interview with Immad Akhund, the founder of Mercury. I interviewed him back in 2019. Listening to that interview now, knowing he has a billion-dollar company, feels incredible.
Looking ahead, I plan to start another company. I see potential in the podcast format itself—its flow, relationship-building aspects, and unique components like content and audience. I’ve thought about creating a podcast network that prioritizes connections and relationships over audience size.
Reflecting on my journey, including two failed startups, I feel optimistic about the future. I’m still young for this industry, and I think my best days are ahead. One big lesson I’ve learned is about funding: I’ll never raise money unless I know something is working, or I can secure a significant amount upfront. I won’t waste time raising small amounts and building under pressure. For me, the middle ground—raising modest amounts without traction—is a graveyard.
Having said that, raising money is tough, especially if you’re not well-connected. I’ve struggled with this in Phoenix, where many founders aim to raise capital locally. The reality has been that unless you’re raising money in places like San Francisco or New York, fundraising success is not assured. Many founders in non-tier-one tech hubs don’t realize that relying solely on local resources can be a trap. Recently, we’ve had some good things happen in the venture capital space in Arizona, so hopefully that’s changing for the better here.
The Most Fulfilling Aspects of Entrepreneurship
Griffin Connolly: Shifting gears a little bit, based on your experience, what do you find most rewarding about entrepreneurship and the potential it holds?
Mat Sherman: The most beautiful aspect of entrepreneurship is the unique dynamic where people take a chance on you—they bet on your potential—and you get the chance to prove them right. Whether you build a billion-dollar company or something smaller, you learn a lot along the way. And then you have the opportunity to bet on someone else. That’s such a fun dynamic.
For example, one of my earliest investors was Eric Ries, the author of The Lean Startup. He didn’t have to invest in SeedScout and mentor me, but he did. He did it because he believed in me and somewhere along the way someone did that for him. Now, I’m inspired to pay that forward and support other entrepreneurs in the same way. That component of entrepreneurship is very cool.
The other amazing thing about entrepreneurship is it’s the ultimate way to discover your true value in the market. There’s a quote that says if you’re not satisfied with your job’s pay, start a company, and you’ll find your market rate. It’s an interesting perspective, though it can be tough if the market rate ends up being lower than expected.
Looking back, I think it’s smart to start with projects where you can get a base hit before aiming for a home run. Once you have that base hit, there’s something beautiful about founders who go all-in on solving massive problems. Once they’re fully committed, raising capital, and overcoming obstacles, they become unstoppable. It’s permissionless. It’s that determination and vision that can drive real change, and I find that incredible.
Emerging Trends in Entrepreneurship
Griffin Connolly: You’ve been in the entrepreneurial space for a while. What trends or shifts have you noticed in entrepreneurship, both broadly and in Arizona?
Mat Sherman: Broadly, one of the biggest shifts I’ve noticed is that being good at sales and marketing is becoming more important than being a great developer. Don’t get me wrong—technical skills are still essential—but the barrier to building is dropping fast. With tools like Cursor and Replit, even people without coding knowledge can deploy apps. The challenge now is: once your app is live, how do you get users and revenue? We’re entering what I call the ‘Idea Guy (or Girl) Era,’ where creative thinkers who know how to market and sell will have an edge.
Secondly, I think Y Combinator (YC) has peaked as an institution. It’ll always be impactful, but I see an opening for a new accelerator or platform to emerge and support founders on a global level. It’s telling that many smart, technical young people are saying no to YC, which signals room for something new in that space.
AI, of course, is massive. What intrigues me most is the potential for AI in social realms—like personal AI assistants communicating on our behalf. Imagine an AI that manages your requests and negotiates with others’ AI assistants. That dynamic of how we allocate access and communication fascinates me.
In Arizona specifically, I see positive trends with venture capital. Firms like PHX Ventures and Monsoon Venture Fund are bringing professionalism and strong leadership to the local ecosystem. Gregg Scoresby is top class, a great operator, and so good for Arizona. And Mike Randall is an Arizona native who also has experience at places like Facebook and Snap, and that experience with innovative technology companies is amazing to have here. Additionally, with TSMC and other major companies moving in, we’ll see a surge in talent. When these workers leave big corporations down the road, they’ll create startups, and local VCs will be ready to fund them. It’s an exciting time for Arizona’s entrepreneurial community.
Advice for Aspiring Young Entrepreneurs
Griffin Connolly: I run a Student Launch Club at school, a space for like-minded, entrepreneurial high school students. If you could offer us one piece of advice as rising entrepreneurs, what would it be?
Mat Sherman: Think for yourself. Don’t assume the way things are is the best or only way—they might have been years or even centuries ago, but the world evolves. Most adults don’t think independently, but many young people and kids do. Something changes as we grow older, and I can’t pinpoint why, but that erosion of independent thought is real.
Having conviction in your beliefs is crucial. It’s not just about being right—it’s about being brave enough to act on your ideas, even when it’s hard or unpopular. If you think independently, you’ll inevitably face judgment and, in some cases, feel like an outcast. That’s okay—it just means you’re doing something different, and that’s where growth happens.
The key is to surround yourself with others who value independent thought. Find a group that challenges norms and fosters creativity because, in a world where many outsource their thinking, finding people who share your mindset is invaluable.
Griffin Connolly: That’s excellent advice. Thank you. I really appreciate you taking the time to speak with me.
Mat Sherman: Of course. It’s been great. I love seeing young people like you take the initiative. It’s energizing. Keep up the good work.
Read my interview last month with Natalie Horner about supporting the rural startup community in Colorado here.