Venture Capital

I recently hosted a Tablecrowd dinner with speaker, Simon Menashy from MMC Ventures… and boy did I learn a lot!

Here are my favourite remarks about the fantastic world of venture:

  • Remember that VC’s also have to fundraise for their fund
  • Venture Capital is not right for every founder and business.
  • The fund has to return profit to investors despite the majority of start-ups in the portfolio failing, so VCs are on the look for companies that are:
    • SCALABLE: Can increase it’s business without increasing the operational costs
    • ACCELERATABLE: If the VC puts $1 mil into the business, it should grow faster and deliver more return than if the $1 million investment wasn’t there.
    • 10x RETURN – VCs are looking for exits that sell the company for 10x the original evaluation (a few need to reach the potential to support all the failures)
  • This stuck with me the most: Every time you take capital, you are limiting your options. For example, Simon mentioned that if you take money from him at a $5-15 million evaluation, you are agreeing to ONLY build a $100million company (no smaller growth or earlier exits).
  • Always plan and alight your current funding round and evaluation with future rounds and evaluations. As in, what can you realistically achieve with this money? And then, what are you going to need and look like?
  • VCs want to see what guidance founders will need in the future and if the founder has mapped out the journey ahead.
  • Series A is a larger fundraising round and later in the company lifecycle. Simon mentioned a huge gap between seed and Series A in the UK marketplace at the moment.
  • Series A investors are looking for: tenacious founders, solid teams, consumer traction, revenue growth, and ROI from their companies.

I’m slowly learning more and more about the funding side of start-ups (whereas I mainly work with their advertising and product development). A great resource if you haven’t discovered it yet is the podcast 20-minute VC! Each podcast interview today’s most successful and inspiring venture capitalists, delving inside the funding game in an easily digestible audio format. I must admit, I’m a little bit in love with its founder Harry Stebbings.   

Mr. Stebbings also started a blog recently, so if you’d prefer to read over listen, check out Mojito VC.

And now, I’m off for a white Christmas in Bulgaria! X

TEDxBrighton

It’s always been my dream to speak at a TED conference. Second to that is actually getting to attend one… and this year, that dream came true at TEDxBrigton on October 28th 2016. The theme for this event was ‘We Can Be Heros’: a celebration of impact.

My top 2 talks were:

  1. Rory Sutherland – Rory is a change maker at Ogilvy. He gives fascinating talks on marketing, human psychology, and choice. This time he focused on the paradox of choice and wealth because we now live in an era where wealth doesn’t always come from having more products and services, but from having a better way to choose between different options. Read more about it here. 
  2. Sarah Giblin – Sarah was a commuter with a problem: with the backpack behind her, she constantly felt threatened by the people around her. After deliberating the design of backpacks, she realized… that maybe… just maybe, backpacks were designed the wrong way around! So, Sarah set out to design and manufacture a backpack that includes the zipper against the users back, rather than being exposed to the rest of the world. RIUT stands for Revolution In User-Thinking because she believes that as consumers, we all have the ability to solve the pain points we experience on a daily basis.

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Other interesting speakers that grabbed my attention:

  1. Beau Jessup – a 17-year old British Girl that has named over 250,000 Chinese Babies through her ‘Special Name’ website.
  2. Dave Perrins – A man who saw felt males were not properly trained to become fathers, so he created ‘The Dad Course’ (a relaxed environment meet-up to help first-time dads prepare for fatherhood and become more engaged, more confident and healthier fathers.
  3. Cat Fletcher – Cat gained national recognition when she sourced the materials for the University of Brighton’s award-winning Waste House, a two-story building constructed almost entirely of re-used waste materials.

My new favourite invention…

We’ve seen an evolution of the ‘alarm clock’ in the last decade. The most popular are the gradual wake-up light alarm clocks, which slowly illuminates in the morning to wake up the body in a natural way that imitates the sun rising. Health claims would suggest it’s a much better way for your mind and body to start the day. And now, with smart lightbulbs… it’s even possible for your room to wake you up from an alarm set on your phone (without any additional alarm clock in your room).

Sound as a morning sense is out, and in come the other four bodily senses. But besides light, a young french inventor also came up with a genius way to wake people up…. with croissants and coffee (well the SMELL of them that is). Even crazier – you can wake up to the smell of money!

Sensorwake: is the Olfactory Alarm Clock. 

With little capsules of smell, it reminds me of the Nespresso design. I am so tempted to try this out for pure fun and enjoyment, but it does come with a $100 price tag. Still – I love the idea and can’t wait to see how they grow as a business !

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Qui est Louise Delage?

Now this is a true content marketing strategy that uses the Instagram platform to its fullest potential. I love the idea and execution of this campaign against alcoholism in France; it definitely understands consumers and their behaviours (even the bad ones).

This reminds me of the AI chatbot Sweetie… see more on that story here.

TableCrowd Dinner – learning from DN Capital Investor

For this particular investor, the sweet spot for making investments was in series A for UK-based companies that were looking for amounts between 1 and 5 million pounds.
If you’re a start-up looking for an investment, he recommended asking yourself two fundamental questions:
  1. Do you even need to raise money? (Is there potential to scale? Can you realistically return a profit to your investors? Are you diluting your shares without a necessary purpose?)  
  2. What is the best source to raise money from?
There are many different groups to go after when raising money:
  1. Family and Friends
  2. Angel Investors
  3. Family offices that diversify from their main industry.
  4. Accelerators and incubators – who are used to helping start-ups
  5. Crowdfunding – good idea if you need user acquisition and have brand advocates
  6. Strategic Pots of Money – VCs within multinational corporations (like Unilever)
  7. Grants – R&D credits, government funds, etc.
Ways to think about each group:
  1. Amount they can give you varies (frame who you go after otherwise you’re wasting 95% of your time)
  2. Due diligence process is different for each group
  3. Terms – shareholding, join the board, have veto rights, etc.
  4. Value added. Crowdfunding adds marketing scale, VCs add more strategic vision and various business connections
  5. Time – how much can your investor commit to you? What if an angel investor has 200 companies?
  6. Speed – corporate and crowdfunding takes longer than a couple of months
  7. Return/Exit – What does success look like for your investor? Put it into context? How high is their bar?
 Our speaker also brought up two very good points:
  • Be very aware of the fact that raising and accepting external money sparks behaviour change. Companies typically shift its criteria, vision, scale, and business models when raising capital, which has an impact on the work culture.
  • 90% of the decision for Venture Capitalists is the TEAM – how passionate are the founders? Who have they decided to hire? Are they capable of executing their vision? Have they experienced and learned from past failures? Do they understand their product’s marketplace?
Another interesting dinner from Tablecrowd… if you’re in London, you should check us out! Who knows – I might be your host :)

AdTech Meet-up London #mobile #startups

Most people probably hide embarrassing interviews – but I’ll post mine publicly and learn from it instead.

In the words of my boss – ‘this is classic VIOLETA with over-enthusaism’. **Also – wanted to clarify that I had not drank the ‘free wine’ discussed in the video before filming this. It really was just me being too nervous and excited in from of a camera. 

Look out for the actual talk on my blog soon!

Also – definitely hating the whole paper business card situation. It’s so inefficient and they end up sitting on my desk for weeks until I finally throw them away. I’ve met multiple start-ups trying to solve this problem (with mobile phones – obviously), so hopefully one of them reaches the early majority soon.  #nomorepaper