
Venture capitalist - Founder and Managing Director at @FirstMarkcap, Entrepreneur, avid Philly sports fan
New York City
Joined October 2009
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Rick Heitzmann retweeted

FirstMark@FirstMarkCapOct 15
United States
United StatesConnected via United States App StoreAccount-level information, not a live location or per-post device.
FirstMark CEO Summit today feat the iconic @harleyf of @Shopify, Mark Ebert of @profound, Alex Buder Shapiro of @clay, and @glencoates of OpenAI 🚀
Always an incredible day bringing the FirstMark family together under one roof!
Rick Heitzmann retweeted
Compute has plenty of prices, but it doesn't have a Price.
Ask five vendors for an H100 hour and you'll get five quotes. Same silicon. The market clearing the largest infrastructure buildout in history still runs on Slack and handshakes.
Thrilled to co-lead @LiquidCompute's $15M seed with @ChemistryVC to build the financial infrastructure for this market.
Rick Heitzmann retweeted
Today, two firefighters were seen running across the Mackinac Bridge carrying heavy gear and American flags. A heartfelt tribute to the 343 fallen first responders from the NYFD on 9/11,
Rick Heitzmann retweeted
Amazing story. Must read for breakout consumer ai
We grew from ~0 to $500M ARR, adding $250M last year alone while being EBITDA profitable.
1,300-word post on every growth tactic that worked for us:
1. What got us from 0-$400M ARR in the US works in every country.
2. Retention and Monetisation Hacks.
3. Localization > Translation.
4. Experiment with $1M internal seed checks.
5. Pivoting to only AI content production unlocked 100% ARR growth.
Pocket FM is like Netflix for audio-only dramas, with our own pool of one-person studios.
1. Acquisition Playbook for 0-$10M ARR in any country in 6 months
We run a 90 sec video trailer of an audio drama as an Ad and ask users to download the app if they're interested in the rest of the story.
Our core insight after spending >$100M on acquisition is: If the clickthrough rate (CTR) for an ad goes from 2% to 2.25%, our customer acquisition cost (CAC) decreases by ~ 30%.
We remodelled our system around this insight and built an AI-first 2.25% CTR ad manufacturing machine that works in every country.
For every new country, we take our hit shows -> use LLMs to extract and most intriguing moments -> Write a 5-min script combining all the best parts. The first 60 seconds has to have a hook every 5 seconds and needs to end with a crazy cliffhanger to force a download mid-scroll.
If a marketing video is not hitting our benchmarks (2.5% CTR and 55% 3-second through-play), a creative director gets involved to change the hook or cliffhanger to get the numbers there.
AI lets us make 1,000 Ads per show, and in total we do ~17.5k Ads per month. When a business creating scales from 1k to 10k Ads, the normal thing is for CAC to skyrocket. But with what I just shared, we 7-8x'd our User Acquisition budget without increasing our CAC materially.
It took us 8 months to figure this out, but then the timeline from 0-$10M in every country got shorter and shorter:
US revenue grew to $25M in 19 months. (US is now 78% of total)
Germany to 21M in 11 months.
France to $10M in 3 months.
2. Retention and Monetisation Hacks.
We knew we wanted to create an audio entertainment platform, but there was no standard format. For the first 2-3 years, we tried 10 different formats before landing on the winner.
After we got it right with audio drama (8-12min chapters, written for mobile fiction, serialized, episodes have strong hooks and end on cliffhangers), avg daily streaming time went from ~25mins to 150+.
Audio drama made us realize that Pocket FM was creating a whole new medium. There was no playbook for anything that we were doing. Everything had to be thought & built from scratch.
This is what we did for each major bullet:
- Monetization: Users have some free daily minutes to listen; then it's pay per episode. We also added the option for users to unlock episodes by watching ads, which is doing extremely well. Ads scaled from zero to a ~$90M run rate in 12 months.
- Engagement & production: You don't become obsessed with an app you open once a week. To have users engage daily, we make the next episode free every day. Also helps them build the habit.
- Discovery. Huge problem because people consuming Pocket FM enter the app, tap the show, and lock the screen. We fixed it by doing "playlists" of episodes. Once users's free minutes on a show are done, we ask users if they want to pay. If they say no, we play a new show, one where they haven't used their free mins. And we stitch episodes of different shows together that way, creating natural discovery.
3. Localization > translation.
78% of our revenue is still concentrated in the US. Localisation is fixing this: You might write a show for a Spanish audience where language, jokes, folklore, have a certain flavor; if you merely translate the show for, say, a Norwegian audience, that color is lost and hurts the show in the Norway. Listeners would relate more if the show was written by a Norwegian.
That's why, instead of translating, we localize shows to different regions. We use AI to take the spine of stories and adapt their whole cultural layer to the other country.
The results: a US show that was localized for a German audience had 50% higher retention than the translated version.
Localization + our user acquisition playbook led to:
- $10M+ ARR in France within 3 months
- $21M+ ARR in Germany within 11 months.
And this expands writers' addressable market.
We get messages of writers thrilled to have revenue coming from the US, India, EU, LatAm, without them doing much incremental work.
4. Experiment.
We give $1M checks to new internal initiatives, and the team has 12-18 months to prove their thesis. If they prove it, we double down.
This is how Pocket Saga came about, our AI video microdrama app. It's an AI video equivalent of Pocket FM. Same shows and structure, but as a vertical 2-min mobile video series.
We launched it two months ago and it's at ~$15M ARR.
Pocket's broader thesis is to help creators tell their stories to as many people as possible. Start with audio drama -> multiple languages or localize to diff countries -> microdrama -> more formats like movies, TV shows, and games.
Best of all is that writers get revenue streams not only from countries they wouldn't have tapped into, but also from formats they wouldn't have thought possible.
5. Pivoting to only AI content production unlocked 100% ARR growth.
In mid-2024, we pivoted to only AI content production.
Our growth took a very direct hit. Pocket was already at $200M ARR, growing 50% YoY, and we flatlined for a whole semester.
Six months later, the business exploded.
After the switch, we went from ~25k hours of content produced per year to over 2.5M hours, which are also higher quality. Because AI orchestrates the writing and more data is fed into it, more blockbusters come out.
Over 90 titles have $1M+ in lifetime earnings and 13 crossed $10M.
Quality control is done with LLM as a judge, and LLMs are quite tough.
Results are very encouraging:
- 12-month revenue retention went from 44% to 76%.
- In the past year, we added $250M in net new ARR.
__________________________________
Pocket Entertainment (Pocket FM + Pocket Saga) has become the largest AI entertainment platform.
We have the largest storytelling catalog with 770,000 titles, 550k creators, and 5.5B hours of playtime with minute by minute retention & engagement data. We are using all of this data to improve every aspect of our business.
Our Bet: In the next 3 years we will be able to produce Naruto-like series for $1000.
Netflix has to spend $17B to find 100 Blockbusters per year.
What happens when you can produce 1M high quality shows for $1B?
The streaming wars caused a $300B reallocation of market cap.
The AI entertainment wars may be a $1T+ reshuffling of market cap.
We are at a unique spot. Unlike other AI creator tools like Runway or Midjourney, we own both the supply and demand side of AI content.
We've attracted over 550,000 writers who are producing an annualized 2.5M hours of content every year. This pairs with 137B+ minutes streamed.
Because of this, growth is accelerating as we scale further.
We have multiple S-curves inflecting at the same time:
- AI produces better and more ads -> scale faster in new countries
- Writers + AI produce more shows -> more blockbusters
- Localisation -> more reach per blockbuster
- Audio to video format expansion -> larger TAM -> more creators
Every aspect of our business is designed to improve another, and everything is aligned so that the number of blockbusters continues to rise.
If you're interested in building at the intersection of ai, tech and entertainment, DM me.
Rick Heitzmann retweeted
Replying to @jaltma
This happens in every disruptive cycle because the aperture of uncertainty is incredibly wide.
Smart people will be wrong. The smarter ones will change their minds. The smartest ones (whom I trust most) have the humility (borne from experience) to know they may be wrong, and speak in probabilities rather than declarations.
Rick Heitzmann retweeted
Rick Heitzmann on Bending Spoons buying Airtable at an 80% discount to its 2021 peak.
@rick compares it to Constellation’s model: buy stagnant software at low valuations, cut the staff, and jack up prices 100-200%.
So is Airtable getting a second life here, or just getting squeezed for parts?
Rick Heitzmann retweeted
🚨 We're live in 20 minutes, joined by @rick, Founder & Partner of @FirstMarkCap.
Five straight years on the Forbes Midas List, and a portfolio that includes Pinterest, Airbnb, and Discord.
Most VCs get one iconic winner in a career. Rick's built an entire collection!
See you at 12 PM central!
Rick Heitzmann retweeted
Something I never understood until I was in venture...
VC is first and foremost a relationships business.
You can do 100 things wrong, but if you have the right relationships, and you focus on being helpful to others, you'll get access to the best founders, the best deals, and the best opportunities.
Replying to @rick
@rick's firm can tap a network of over 80,000 people for advice on demand. It started as a Google Groups experiment with a couple hundred people in his portfolio.
Rick Heitzmann, Founder and Managing Director of @FirstMarkCap, on why relationships have compounded harder than capital or brand across his 20-plus year career.
"I think that DoubleClick alumni network has produced something like 40 CEOs."
"There's now over 80,000 people which we're able to touch, but actually as importantly, they're able to touch other people in those networks for advice, for know how, or just to build a relationship."
When First Mark started in 2005, New York was the 7th biggest venture market in the country and everyone who mattered fit in one small office. Those same people are still sending Heitzmann deals two decades later. He calls the current version guilds: micro networks by function and sector, deep enough that a head of finance at a random software company can get a real answer from a real peer in minutes instead of guessing.
Capital returns once. A relationship compounds for a career.
Rick Heitzmann retweeted
EXCLUSIVE: Henry AI has raised a $16.5M Series A led by FirstMark.
Used by 150 commercial real estate brokerages to generate decks, the NYC startup is launching a new product, Henry Deal, to automate underwriting.
"We're at the forefront of what I call the hard part of AI."
RT @DavidWaltcher: @abcbyDamien is the epitome of founder market fit. Couldn’t be more excited to be working with him and the wildly talen…
Rick Heitzmann retweeted
Grit ≠ Talent.
After two decades of research, we know that the correlation between grit and any measure of talent is about zero.
It's passion and perseverance that make super achievers.
Rick Heitzmann retweeted

FirstMark@FirstMarkCapJun 5
United States
United StatesConnected via United States App StoreAccount-level information, not a live location or per-post device.
Guilds Summit.
Where the best share how they build.
June 16.
NYC 🗽
@oliveur @anjsud @katieburkie @lilscotboy @jon_hyman @ElyKahn @EnoReyes @ivanburazin @gcmarker @davidneckstein
Rick Heitzmann retweeted

FirstMark@FirstMarkCapMay 27
United States
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Congratulations to @vercel @ClickHouseDB @CockroachDB and @daytonaio on making the InfraRed 100!
Incredibly well-deserved recognition 👏 we're thrilled to be on the journey with you.
Rick Heitzmann retweeted

FirstMark@FirstMarkCapMay 20
United States
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Episode 2 of Standing Table is live featuring @rick, Dan, and @GuyAdami, diving into AI, prediction markets, owning a piece of the Yankees, and so much more.
Watch the full episode from @RiskReversal at youtu.be/8dKP997dnW0
Rick Heitzmann retweeted
Watch Standing Table with @rick of @FirstMarkCap now! youtu.be/8dKP997dnW0
Presented by @apexfintech
Rick Heitzmann retweeted

FirstMark@FirstMarkCapMay 11
United States
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New from @RiskReversal! Real stories, real talk, and real good food starting on Tuesday, May 12.
Hosted by @GuyAdami and Dan Nathan, and featuring an incredible group of guests (including our very own @rick) 🥂
Rick Heitzmann retweeted

FirstMark@FirstMarkCapMay 7
United States
United StatesConnected via United States App StoreAccount-level information, not a live location or per-post device.
Yesterday, 150+ AI CEOs gathered in NYC for AI✦NY — an off-the-record summit focused on the most critical challenges defining this moment in AI.
We heard from @akofoid (Databricks), @c_valenzuelab (Runway), @kareemamin (Clay), @AmandaKahlow (1mind), Rob Chisholm (Qatalyst) Kunal Madhok (Wells Fargo), Amin Venjara (ADP), and Tom Haslam (KPMG).
Co-hosted by @amishjani (FirstMark), and @NeerajVC (Battery), with moderators @abimbhet, @billbinch, @BrandonGleklen, and Scott Goering.
Special thanks to @FifthThird @golub @KPMG @CooleyLLP @googlecloud, and @qatalystgroup!





























