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“Today’s young consumers are thriving in digital spaces such as Roblox, Fortnite, and Discord,” remarks Jason Yeh, Co-Founder and General Partner of the early-stage venture firm Patron. He underscores the firm’s commitment to investing in nascent consumer enterprises that will significantly influence how this gaming-savvy generation engages in learning, shopping, socializing, playing, and even procrastinating online, as highlighted in a discussion with Entrepreneur.
Established in the fall of 2021, Patron emerged from the intersection of Yeh and co-founder Brian Cho‘s backgrounds in venture capital and their leadership roles at Riot Games. Yeh contributed to the remarkable growth and launch of League of Legends over a nine-year span. Their third partner, Amber Atherton, previously created a community platform supported by Y Combinator and Forerunner, which was acquired by Discord, where she helped broaden the company’s reach beyond gaming.
In a conversation with Yeh, we explored the qualities Patron values in founders and the insights he gained during his time at Riot Games about what differentiates a merely “good” product from a truly transformative one.
What inspired you to create Patron?
Observing how my daughters navigate the Internet for the first time prompted a reevaluation of my own biases about digital interactions. They are growing up in an era shaped by AI technologies like ChatGPT, expecting the internet to deliver direct answers rather than directing them to multiple links or ads, a contrast to what I experienced with platforms like Google. Their experiences with streaming services, which intuitively curate content for them, made me realize there’s a significant gap in products that resonate with their generation.
This realization pushed me to adopt a fresh perspective—stepping away from preconceived notions of online experiences to understand firsthand how younger users engage with digital platforms. It became clear that there was a substantial need for tailored products and services aimed at their cohort.
Please share a “holy @#$!” business moment.
During the pandemic, as we developed Patron, I found myself in a whirlwind of change— relocating from Berlin to Los Angeles, balancing school runs, fundraising, and hosting Zoom meetings from my parents’ home while searching for a new place to live. Amid this chaos, an unexpected opportunity arose to align with a larger firm, which promised an easier fundraising experience and improved work-life stability. On the surface, this seemed like a prudent choice, yet it felt imperative for me to maintain control over my work and the teams I collaborated with. Choosing to pursue our vision instead was a significant leap of faith, one that I hoped wouldn’t hinder our fundraising efforts.
In a turn of fortune that surpassed my expectations, we managed to achieve an oversubscribed debut fund within six months. This experience reinforced the notion that the most challenging decisions often lead to the most extraordinary outcomes.
What advice would you give entrepreneurs looking for funding?
Many entrepreneurs focus on product development before fully understanding their target audience. At Riot Games, our focus wasn’t on creating an exceptional game from the start; it revolved around engaging our core users deeply and crafting something they would invest countless hours in. My advice is to develop a profound comprehension of one’s audience early on. Founders who possess a unique insight into their users stand a better chance of organically reaching them and should integrate that community focus into the foundational elements of their company.
Can you share details of your success with fundraising?
I take pride in our ability to raise our target fund sizes efficiently across two unique market landscapes. In 2021, we successfully raised our $90 million Fund I within six months, despite the fact that Patron was a newly launched entity. Fast-forward to 2024, we faced a more challenging fundraising environment, yet we secured our $100 million Fund II in around nine months, welcomed new institutional investors, including a large endowment, a sovereign fund, and several family offices.
What does the word “entrepreneur” mean to you?
To me, being an entrepreneur embodies the drive to create something from nothing. It’s about transforming ideas into tangible realities through determination and innovation. Entrepreneurs are inherently risk-takers, as embracing the new is always less daunting than staying the course. As co-founders of Patron, we identify as entrepreneurs ourselves, which enhances our empathy for the founders we work with.
What is something many aspiring business owners think they need that they really don’t?
There tends to be a misconception that endorsements from celebrities or well-known figures equate to product quality or market fit. Many entrepreneurs chase that one influential person to validate their offerings, particularly in the gaming industry. However, relying on financially motivated endorsements can often lead to unsustainable growth. Instead, the focus should be on understanding user motivations and creating products that resonate with them deeply. The subsequent goal is to empower that core audience to share their love for the product with others.
Is there a particular quote or saying that you use as personal motivation?
One quote that resonates with me is by Rick Rubin: “Look for what you notice, but no one else sees.” Our role as investors extends beyond identifying what’s apparent; it involves uncovering unseen potential that could lead to transformative innovations. Our commitment lies in supporting groundbreaking ideas that will define future interactions in the digital space.
To fellow founders and entrepreneurs reading this, I pose this question: What future do you envision that others might be overlooking?
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