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Episode 26 - Isabelle Thierfelder, Venture Capital at seed + speed
73 Plays11 months ago
In this episode, Sade and Isabelle discuss seasonality in the VC world. Isabel shares her insights on timing and how when you apply can impact a founder's funding application. They then went on to discuss how to apply, the pros and cons of warm intros, and how you can leverage LinkedIn for your funding application.
Lastly, Isabelle shares her advice on how to approach the very first call. She shares how to make an investor see the true value of your company. And the biggest mistake founders make on that first call. And of course how to avoid it.
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Transcript
Seasonality in VC Funding: Timing and Impact
00:00:14
Speaker
Hello everyone and welcome back to a new episode of Women Talk Tech. Today I'm joined by Isabelle, investor at Seed&Speed, and in this episode we discuss seasonality in the VC world. Isabelle shares her insights on timing and how when you apply can impact a founder's funding application.
Warm Intros and LinkedIn: Effective Strategies
00:00:31
Speaker
We then went on to discuss how to apply the pros and cons of warm intros and how you can leverage LinkedIn for your funding application. Lastly, Isabelle shares her advice on how to approach the very first call.
Presenting Company Value to Investors
00:00:42
Speaker
She shares how to make an investor see the true value of your company and the biggest mistake founders make on that first call, and of course, how to avoid it. I hope you enjoy this conversation.
Isabelle's Berlin Background and Startup Assessment
00:00:53
Speaker
So Isabelle, tell me a little bit more about yourself.
00:00:57
Speaker
Yes, hi, and thank you for the invite also. Yeah, I'm Isabel. I'm 27 years old and I'm an investor from Berlin. I work at an early stage VC in Berlin, focusing on pre-seed and seed startups. And yeah, I've been in the investment team for like a little over two years now. I'm coming from a business background, let's say, so I have like some experience
00:01:27
Speaker
and consulting, I've worked at different startups on the operation side. So when I'm assessing startups and conducting the investment process, I do look at startups from a business point of view more.
Berlin's Multicultural Startup Ecosystem
00:01:45
Speaker
And yeah.
00:01:46
Speaker
You know, two siblings, no pets from Berlin already. And yeah, I must say, like, I love the startup and we see ecosystem here from Berlin. I think it's so multicultural and like so diverse also, at least to some extent. There's a lot of room for improvement also, but
00:02:12
Speaker
Yeah, I think we're going towards the right direction. Yeah, no, I mean, that's one thing I do. Berlin, it's definitely a lot more multicultural than other cities. And yeah, just in a startup scene, there's so many different variety of startups, like different ideas, things that I never would think about. So yeah, really, really cool. Yeah. And what does diversity and inclusion mean to
Gender Equality and Diversity in VC
00:02:33
Speaker
you? And we'll get into more detail in the podcast, right? But just, you know, very briefly, what does it mean to you? And why do you think it's important?
00:02:40
Speaker
Yes, yes. I mean, you know, I'm from Berlin, so I do have the, let's say, national background that a lot of other VCs and startup founders here from the area have. However, you know, I am a woman and I'm still also more junior, let's say. And I think, for me especially, the perspective is
00:03:07
Speaker
a lot on the gender equality side. However, I also, you know, my mom is from, or my granddad is actually from, is Afro-American, so I don't look
00:03:20
Speaker
totally German, I would say. People think I'm like, you're from Spain or Italy, most of the times. But yeah, I think for me, it's especially from this like gender perspective, that is, you know, I'm usually the only woman in a call. Like, I think almost like, you know, every call I attend, I'm the only woman, or there's at least like, maybe like, or,
00:03:44
Speaker
maximum one other one other person that is female and not talking about people that you know
00:03:54
Speaker
identify completely different. I think that is something that I don't experience at all, actually, or almost, you know, in the whole VC and startup ecosystem.
Diverse Teams: Decision-making and Problem-solving
00:04:09
Speaker
However, I think it's so important on so many different levels, you know, of course, also on like
00:04:19
Speaker
how you think about investment opportunities in general, I think, from a VC kind of perspective, you know, when you assess companies, you tend to, let's say, groupthink, you know, I think you have, you come from when you have a diverse team, you come and you come from different backgrounds, you also have different experiences that
00:04:47
Speaker
help you in assessing the company you're assessing. And you also have different approaches to problem solving or alternative approaches also in your decision or different approaches in your decision making also and what helps you to come to a specific
00:05:11
Speaker
Additionally, also, of course, you bring other skills to the table, you bring different knowledge to the table, you have, you know, also some form of different, let's say, approach or creativity in solving
Diverse Teams: Financial Outcomes
00:05:28
Speaker
challenges. I think it's, you know,
00:05:32
Speaker
so important on such a broad level, let's say. And I think also, of course, in, you know, software factors, let's say, you know, like your employee retention and the brand you're building
00:05:50
Speaker
you know, your reputation as a VC, but also known, of course, as a startup in the end of the day, where this also leads to, you know, I think in the end, creating better solutions as a startup when you have, you know,
00:06:07
Speaker
different approaches, you identify different blind spots as a startup. And I think actually, also the data proves that, you know, having a diverse team also has direct effect on, you know, your top line and bottom line revenues and, you know, your financial performance at the end of the day. So I think it's, I think there is
00:06:33
Speaker
such a huge amount of factors that show that it is super important and that is why it's also so meaningful to me.
00:06:43
Speaker
Yeah, no, I love that. And I think you're so right. It's like the different perspective, it's a different viewpoint. It's like how you actually view different aspects in different ways, I think, like, you know, say for me, we would view different things in different ways, or you would see an investment opportunity where I may not and vice versa. And that's really based on our upbringing, our culture, our background. And that's why it's so important to have so many different people in the room when decisions are being made.
00:07:07
Speaker
Yes, yes, yes. And you're building also like, I think your question, when you come from a different background, you question also different things, right? I have that, even in my private life, when I talk to, you know, people from other countries, from other backgrounds, from other, you know, even like, when they studied like different kind of subjects, you, I mean, your surrounding forms,
00:07:33
Speaker
who you are and how you assess problems and how you view your overall surrounding. So I think this is totally necessary and helpful and also needed in a team and also to perform good as an investment firm and as a startup in the end of the day.
00:07:53
Speaker
Yeah, and that's why I do think for startups, it is really important and so valuable because as a startup, you see so many different problems, you tackle so many different issues. And if everyone's been to the same university, the same school, then you're going to see the problem in the exact same way. Whereas having a different, you know, different people in your team, you can then tackle it and also solve different problems that will also arise. Yes, yes, I think this is also something where VCs and where
00:08:20
Speaker
me especially, or we as an investor, like as a VC fund, also focus on, you know, looking at when we assess teams, like founding teams, that they're not coming, you know, from all the, from the same university with the same studies with the same age, same background, but we really want them to have diverse perspectives and also to be like complimentary, you know, tackling the problem they're trying to solve.
00:08:48
Speaker
Yeah, yeah, definitely. And honestly, really excited to kind of dive into the topic of today's podcast on applying for funding and like seasonality in the VC world, because I must admit, it's something which I know quite little about. I can see different trends, just from my own experience in the startup scene. But yeah, very kind of keen to see from your side, like, yeah, I guess let's kick things off.
Timing's Effect on Funding: Availability and Seasonality
00:09:08
Speaker
Like, when do you think it's the right time to apply for funding? Yeah, keen to see what your thoughts are.
00:09:15
Speaker
Yeah, I mean, I think we have the perfect timing because it's just before. And I think, you know, it totally depends on where you're coming from, what kind of funding you're looking to raise, honestly. And I think also what, you know, time of the year you're applying because
00:09:44
Speaker
When is the right time? The question is so like, you know, of course, also broad in terms of like, how much money do you need? How much money do you still have? You know, how much pressure you have on raising your funds? Because funding fundraising processes can literally take up to, you know, from six months, but even more, you know, so I think it really
00:10:05
Speaker
Um, depends, I think generally saying it's always helpful to have, you know, enough runway, enough cash on the bank that you don't have to settle for less, that you don't have pressure to close your round ASAP. So you have to.
00:10:26
Speaker
you don't want to go with an investor that you're not comfortable with, right? So I think you don't want to also settle for less favorable terms from your side. So I think it's always good to have that extra buffer, let's say.
00:10:41
Speaker
that when you are applying, you are still in your comfort zone and you have also maybe a fallback mechanism that you can trigger when things are not going as planned. So I think when you're coming from a pressure perspective, I think this is never a good start point.
00:11:07
Speaker
Sometimes it also happens that your fundraising, all the funds you're trying to raise don't come, don't end up with the amount you were envisioning to raise. And then you also have to adjust your business plan,
00:11:25
Speaker
overall like perspective for the next years maybe and I think this is also not something you're wanting to achieve, right? So I think it's always good to have a little bit of an extra buffer independently from the time you're approaching funds, right?
00:11:44
Speaker
Yeah no that of course makes sense and I guess on the kind of topic of seasonality and timing, how does this affect a founder's funding application? Let's say I apply now for funding, is it likely I'm going to get seen in this time? In terms of timing, how much of an effect does it actually have?
00:12:04
Speaker
Yeah, I think generally, I think the effect is not to be underestimated.
Holiday Impact on Funding Success
00:12:10
Speaker
So I think timing has a huge effect from also different perspectives, right? I think this is also something, you know, that varies from availabilities generally, you know, like now it's just before holiday season. So I think during Christmas, for example,
00:12:28
Speaker
although not everybody, you know, celebrates Christmas, but there is some form of holiday for almost everybody, I believe. So people, you know, want to spend time with their families and not, you know, having to like, don't want to work. Yeah. I think this is like, you know,
00:12:49
Speaker
something that you should keep in mind but also I think during maybe like the summer holiday season I think people are also tend to be you know tend to go on vacation during at least where we are like in Germany you know people go on vacation during August most of the times
00:13:10
Speaker
or maybe also thinking about people that have children. I think there's school holidays that are at specific times where people tend to be less reachable, let's say, but then also generally in terms of general workload and
00:13:32
Speaker
Distractions this can vary from you know big events that are taking place you know not now during November there was like slash and web summit that are like huge investor Fares let's say and I think then people are people are also off
00:13:48
Speaker
or not off but busy with other things then you know I think there's also like a fundraising season where you know we see funds raise their funds so they also tend to be busy with you know getting LPs on board.
Leveraging Hot Topics in Funding
00:14:08
Speaker
I think you know if you have any insights on
00:14:13
Speaker
let's say team restructurings right, I think this is also something that you know you should take into account if you know that they are you know currently you know restructuring their team or I don't know like some partners left at some fund and they kind of have to get new people on board or.
00:14:32
Speaker
you know, I think also from a distraction kind of, generally from a distraction kind of angle, but then also timing can have like a positive effect, let's say, when you're a company that tackles like, you know, let's say a current hot topic in quotes, you know, that are in everybody's mouth, and you're actually a company that is really, you know,
00:15:00
Speaker
Targeting that exact topic that is all over the news. This can hold like, you know, like a really positive effect on your, on your funding application, let's say. Or, you know, sometimes you know that, or you see that a fund is like releasing the deep dive into a specific topic.
00:15:22
Speaker
right, they're, you know, publishing an article on Medium or a mapping that they, you know, did over the last couple of months. And that gives you like an insight on your on the expertise they're like, you know, building they have built they're currently building. And if you're a company that is, for example, you know,
00:15:44
Speaker
targeting that vertical or that space that this fund is looking at currently. And this can also have a really huge, you know, like a huge positive effect on your application, right? And of course, insider info.
00:16:04
Speaker
It always helps if you know somebody that knows somebody and they know that this fund is currently looking at, I don't know, battery recycling strategies or mechanisms. I think this can also help, of course, right? So I think, generally, the timing does have a huge effect from all different perspectives, negative and positive.
00:16:32
Speaker
And I think for you as a founder, it always helps to get as much info as possible to know when the right timing is for you personally, you know? Yeah, yeah, totally. And I think Christmas is one of those times of the year where everyone does take time off. I think summer is one where, yes, people do, but not everyone takes the same week off in August, right? But Christmas, especially, whether you celebrate it or not, the company sometimes shuts down, et cetera. So it's interesting.
00:17:01
Speaker
Yes, yes, you know, like we at Seton Speed, like we have a, you know, of course, if somebody comes up, you know, last minute, or is like, really, you know, we have to, we have to work on something we will, but generally, the, let's say the census, let's work not too much during between Christmas and New Year, right? So I think people will be definitely less reachable during those.
00:17:27
Speaker
Yeah, yeah. And I guess on the flip side, right, you mentioned there were pros and cons.
Funding Advantages During Less Busy Times
00:17:32
Speaker
What are some of the benefits of applying during times like Christmas, when maybe not lots of deals are going through all the summer, let's say? Yeah, what are some of the benefits in doing it now?
00:17:43
Speaker
I think generally there is less distractions that can be like from other deals, but also like from events or similar. So I think the investor you're talking to most likely has more capacity to focus on the DD they're conducting with you.
00:18:08
Speaker
So I think especially for complex business models that need some, you know, that you don't grasp like right away, like in an instant, you know, just like after two sentences that need more, you know, time and effort and understanding to really, you know, get the value across that can be like super beneficial for you as a startup. I think also,
00:18:37
Speaker
You know, people probably have more time to also build a proper like relationship with you. I think if you're not like back to back to back on calls and you literally have like, you know, I don't know, in half an hour or an hour with each.
00:18:52
Speaker
founder you're talking to, but you do have some time to chitchat, to build a relationship, to even, I don't know, meet in person, which I think is crucial to build that relationship within the investment process.
00:19:10
Speaker
Um, I think there's maybe also like more time for that and more, also more, maybe not only just time, but also like, you know, brain capacity, if that's the word, you know, like that you can, you know, um, have the mindset also to get into, into the topic that this startup is like, yeah, tackling. So I think this is.
00:19:34
Speaker
this can be really beneficial. But there are also, of course, downsides when you're applying during off-season, let's say. But yeah, I think generally there can be actually proper benefits to it, yeah.
00:19:56
Speaker
Yeah, yeah, totally. I see the downsides being things like not being reachable, right? But other than that, what other downsides would you have in mind that are, I mean, that would be the main thing, right? People are not actually working. So your application may get lost in how many other applications in that time. But what other downsides than doing it in applying in the summer or applying at Christmas?
Off-season Decision Cycles
00:20:16
Speaker
Yeah, yeah. I mean, when somebody's not working and not reachable, that could be public.
00:20:25
Speaker
I think in general, I think generally also coming back to your first question and when is the right time, I think because during off-season decision cycles will be longer, right? So I think this is due to availability, which I touched on earlier before, like, you know, but I think also, and
00:20:50
Speaker
We were actually talking about this off mic already built like this like momentum yet some can help when you're raising funds, you know, I think
00:21:03
Speaker
However, you know, people probably have different perspectives on if that momentum should be, you know, if building momentum should be such a crucial part of your decision making process or not. I think the opinions vary. However, this also depends, of course, on the fund you're talking to, but some funds really thrive on, you know, that momentum that you're building with your fundraise.
00:21:30
Speaker
And I think this is this is also something that can happen within a fund, you know, getting, you know, everybody hooked within the team, let's say. Yeah. Also, this can also build
00:21:44
Speaker
across multiple funds. For example, here in Berlin, the ecosystem is big, but also small in terms of we all know each other and we talk to each other about interesting companies that are fundraising. And I think there is also this moment when a really interesting company is fundraising, then the people from different funds are all talking about the same startup and there's this unique,
00:22:11
Speaker
um a bit like in high school maybe um you know like have you heard this have you heard that and blah blah blah blah blah so I think this momentum gets built also as I said within your within one fund and also across multiple funds and I think um
00:22:30
Speaker
during off-season and also in terms of, you know, lack of availability or apart from lack of availabilities of decision makers, especially I think people sometimes
00:22:43
Speaker
you know, maybe have the let's, as I said, brain capacity to really deep into your topic or into your company. But sometimes I think they also, you know, are already a bit into the holiday mode, which is also totally, I think, normal and also understandable. And I think sometimes, you know, people want to
00:23:07
Speaker
finish existing projects and are less focused on starting new ones. I think this also can vary so much. I think some people get that motivation kick in the last sprint, let's say, where they are like, okay, I want to finish this or I want to finish on a high note and I want to get one more investment done.
00:23:36
Speaker
you know, whatever it is. But sometimes it's also understandable that you want to, you know, finish all existing projects and then drop the pen and go into your well-deserved, you know, holiday.
00:23:51
Speaker
Yeah it's so interesting because yeah there's just pros and cons of everything right like anything in life but I guess you know now I've found the right time to apply I'm a founder myself let's say.
Capturing VC Attention: Techniques for Female Founders
00:24:03
Speaker
Let's say I am applying now how would you recommend I go about it because I think there's you know there's warm intros there's different ways you can approach it you know what route would you recommend in terms of just being noticed especially as a female founder right because we tend to
00:24:16
Speaker
Yeah, there's not many of us, let's say, I'm saying us like I'm one of them, but there's not many of female founders. And I think, you know, they get lost in the application funnel. How does it work? And kind of, yeah, how would you recommend people to apply? Yes, yes, yes. So I think there is different aspects to that, right? So I think generally, independently,
00:24:41
Speaker
if you're a female or male or have a diverse background. I think for me personally,
00:24:51
Speaker
pitch events are a great way to get the first kind of network kick, let's say. So if you don't know anybody that has any touch point with the VC ecosystem, or you don't have that personal network in the
00:25:16
Speaker
back that you can leverage. I think pitch events, ideally offline, like in-person pitch events can be super beneficial. And I think there's also a huge variety of different formats. I think short pitches where you pitch, I don't know, let's say five minutes and there's a short Q&A afterwards where they can ask you different kinds of questions. They want to
00:25:46
Speaker
tackle, I think this can be a great format because you have everybody's attention, you know, when you're like on a little stage, for example, everybody's listening to you. They get a personal impression of you if you're standing there. And I think this can be a great starting point, let's say.
00:26:08
Speaker
They can approach you afterwards in person, can chitchat to you if they like what they saw. Those kind of like pitch events, let's say, or pitch formats also happen at big events, right? So I think there's usually like a little startup competition where you can apply and then you can pitch there.
00:26:33
Speaker
At those big events, I'm personally not a fan of, you know, somebody running into me when I'm just running from one appointment to another. And, you know, you have these always these little batches around you where you can see that you're an investor and I'm like, you know, when I'm, for example, running to something and they just grab you and, you know, they want to have their well-deserved
00:27:03
Speaker
five minutes with all your attention. This is usually, you know,
00:27:08
Speaker
I always feel it's a mix of like, you know, you, you know, you want to value that founders want to give them the attention they deserve, but then maybe it doesn't literally doesn't fit your schedule currently and you're with your head somewhere else. So I think these events usually have a great way of connecting founders with investments through like a slot booking.
00:27:34
Speaker
So I think this can be really, you know, great for the founder and the investor where, you know, they can send each other a message, schedule time, 15 minutes, let's say. Usually, you know, you already know where you're going to meet, table 15, you know, at the investor speed dating lounge, let's say.
00:27:55
Speaker
And I think that is a great way also to talk to somebody and a great route to take when you maybe don't make it to the starter pitch stage, let's say.
00:28:10
Speaker
And I think here in Berlin and I think also in London and other cities where there is a lot of, you know, more like a lot of founders and VCs also maybe in one place, there are usually, you know, quite frequently some get togethers organized, you know, by funds, by founder initiatives, by the government sometimes even, you know, between founders and investors where you can really, you know, click
00:28:41
Speaker
even through like an activity you're doing together or like even just like a breakfast or drinks or like some casual get together. Yeah. I think this can really help. And then also, yes, as you already mentioned, warm intros, you know, through maybe existing investors you already have on board are, of course, the number one
00:29:08
Speaker
the the number one um success uh uh weight or the most successful probably way to go um but also warm interest through your personal network you know if you already
00:29:23
Speaker
know people from your uni, from I don't know, let's say family and friends network, from maybe other founders that have investors on board already. I think getting those warm and shows can really help too. I think especially for female founders, there have been more and more initiatives coming up where
00:29:51
Speaker
especially female-led teams are getting the chance to pitch to investors too. Also female-only get-togethers, female-only events, online and offline. So I think those ones are maybe also a good way to start from, especially for female founders. Yeah. Yeah. Yeah.
00:30:19
Speaker
Yeah, interesting. And of course, every fund so different, and I actually only, well, not only, but I learned this when I was speaking with, you know, different investors, every fund has different topics that they focus on, and everyone is structured so differently. So how, how do you kind of know which fund to apply to?
Conducting Due Diligence on VCs
00:30:37
Speaker
Honestly, I think you should really, you know, conduct your
00:30:42
Speaker
DD fund, right? So on all the different funds, I think there is, you know, of course, or
00:30:51
Speaker
I think most of the funds have on their website, right? So they have like information on the website where it says like high level, what they're invested in, also page, you know, ticket sizes, some overall information. And then there's, you know, I think LinkedIn as a social media channel is getting more and more important, I think.
00:31:14
Speaker
the big funds are all on that platform. So they have some, you know, let's say they usually have this like website information, let's call it, and also on their LinkedIn. And then additionally, you can see what are they posting, you know, like what they post, of course, the investments they take, which are also on the website usually, but then they also, you know,
00:31:43
Speaker
post articles or mappings they publish they even I don't know post podcast appearances where some of their team members are talking about something they're passionate about in a podcast you know so this could also help listening to listening to those ones and see what this particular person is interested
00:32:10
Speaker
And I think there's also the opportunity or the possibility to screen the different investment team members through LinkedIn, right? So, you know, I think this, the information you get on those like kind of channels can be huge and extensive. So it varies from, you know,
00:32:36
Speaker
where has this person worked at before? Maybe you can see some red line through their CV and see, okay, they worked at different manufacturing companies or whatever it is. So you really grasp what kind of passion they have, where they have also some expertise. You can even see it through, I don't know,
00:33:01
Speaker
posts, they get mentioned in statements to make, you know, similar things on LinkedIn or even like Twitter or X, you know, so I think you can really grasp the interest and the passion those community members have, right? And I think also maybe, you know, people have their, like,
00:33:28
Speaker
bio, let's say on the LinkedIn. And you can also like, make a place hashtags, let's say. Yeah. Or you can, I think you can put like multiple, like, I don't know, up to five or 10, even so you can really like grasp what kind of like input they also want in their feed. So you can really, you know, take this like, understanding back to what they're, what they're passionate about.
00:33:55
Speaker
Yeah, yeah. And just tailoring your application to the person you're applying to, essentially, you know, there's no point, like anything in life, when you're going on a date, or you're applying to a new job, you're going to, of course, put your best foot forward in a way that is suitable for that person. Exactly, exactly. You really want to know, when you're an investor, you really want to get the idea that this founder has really a strong
00:34:24
Speaker
understanding of where you're positioning yourself in the front and that they really did their like, let's say, DD on their side, right? So if, for example, a startup approaches me, and they, you know, we invest into B2B software, right in the in the German speaking region. And if this is like a consumer hardware startup from Brazil, I'm, I'm just asking myself, okay, if this is like the
00:34:54
Speaker
the depth of your research you're doing when you're trying to approach investors, where else are you lacking your, you know? So yeah, I think it shows a lot about you also as a founder, if you're really, you know, making your, getting your head around the fund you're approaching.
00:35:20
Speaker
Yeah, no, amazing. And, you know, I found the right time to apply. I've applied for VC funding. I've now got my first call.
Effective First Investor Calls
00:35:27
Speaker
Of course, we actually just touched upon this about knowing the audience. But, you know, how, yeah, I guess, how do you kind of go about this first call? I think, you know, you have to make a really good impression, right? It's like a first date. You know, you want to, you know, make the analysts understand true value of your company. How, you know, how does this all happen? And kind of what top tips would you give to founders who have now got that first call?
00:35:48
Speaker
but they don't know where to begin to prepare themselves. Yes, yes.
00:35:55
Speaker
I think the most important and what I'm also always trying to tell friends that are approaching for funding and that are getting this first call, it's really knowing who you're talking to. And I can't stress this enough. It's so important to know your audience. And I think this is actually also a skill
00:36:20
Speaker
um to know who you're talking to and then explaining them in their level of understanding maybe something for example really complicated in simple terms let's so let's say you're talking to a visiting analyst that has just joined the company fresh out of uni um this person
00:36:44
Speaker
probably has not, most likely doesn't have the expertise you are having in the sector you're operating in, right? And the company you're building. So I think it is so important to explain something complicated in simple terms that the person you're talking to really gets the
00:37:11
Speaker
the high level idea of what problem you're trying to tackle, right? Because I think in general, I think it's so, when you're losing somebody within like the first minute, it's really hard to get them back and get their attention back, right? And I think, however, if you're starting really high level and then understand the
00:37:33
Speaker
the other person's understanding of your company from the questions that are being asked to also get a glimpse of what is important to them because this can also vary from investor to investor and what kind of background knowledge they have. So I think this
00:37:57
Speaker
This is a bill that you should really try to leverage because in the end of the day, the first person you're talking to, this is like your internal champion, right? If you don't make them understand the value of the company and why your startup is worth investing in,
00:38:18
Speaker
they will not bring it, you know, to the deal floor crawl, or they will not, you know, let's say, you know, presented how you want your company to be presented. So make that person your internal champion. Yeah. And I think this is something that is a skill that also shows the empathy you have, that shows how good of a founder, in my perspective, you really are. If you really,
00:38:46
Speaker
understand the audience you're talking to and who you have to win at what stage of the investment process. And I think really grasp that from experienced founders actually, that they know, and I just actually recently talked to a company that had a huge
00:39:09
Speaker
a great understanding of how a VC operates and when you have to win what member of the investment team. So they knew, now I have to win this associate that doesn't have any expertise in this field.
00:39:25
Speaker
But I have to make them understand the return of investment they could really get from investing into our company, right? And then, you know, if you're moving forward with the process and you're also talking, I don't know, to a principal or a partner at some stage, you know, they have, of course, different expertise, different knowledge.
00:39:47
Speaker
then you can dig deeper, right? And then things can, terms can get more complicated and they probably also have a different perspective on what KPIs they want to see and or what they want to want to hear from you. And I think really it's great when you adapt your storyline to what you're talking to.
00:40:10
Speaker
Yeah. Yeah. It's kind of like a first date, right? You know, a first date, a first interview is, you know, very similar. You have to know who you're going on a date with, know who you're interviewing, et cetera, because it works both ways. And I think that's why it's so important to really know who you're speaking with. I actually know you mentioned that a lot of
00:40:26
Speaker
founders are doing this part wrong. What do you think or what have you found to be the biggest mistake founders make in that very first
Ensuring Key Points in Deal Flow
00:40:34
Speaker
call? Because it's your first impression, right? And if you get that part wrong, like you said, that person may not even put you forward to the deal flow side of things. So yeah, what's the biggest mistake you've seen? I think try to convey your message. So the first
00:40:54
Speaker
step within the investment process is usually that person you talk to, or those two people you talk to, bringing you to the deal flow call, let's say, where the investment team, broader investment team is talking about your case to different extents. Like, you know, sometimes this can be like a two minute thing for each company. Some VCs, you know, operate differently that they are talking about every company a bit longer. So I think
00:41:21
Speaker
Try to assess what is what you want your audience to know for that deal flow call. Yeah. And really try to see if they understood what you wanted to say. Right. Yeah. So getting, if you have the, so if you have just this.
00:41:40
Speaker
slight impression that this person maybe has not understood for whatever reason it is what you wanted to say, you know, repeat it or, you know, send a follow up email if you go out of this meeting and say like, okay, maybe, you know, I forgot, maybe you forgot something, right? Maybe you just want to emphasize some one or two points again, right? So I think,
00:42:09
Speaker
try to identify, you know, two or three points. You really want that person to, to mention in that deal flow call, if it's two minutes and then either see if they really understood it within your call or send a follow-up email. And then that's it again, because also, I mean,
00:42:31
Speaker
you know, we assess so many different companies. And if you're preparing for that, you know, internal presentation, let's say, deal flow presentation, and your flow call, you know, you look into your notes, you look into the follow up email that person maybe sent you look into the deck again, and then you really want this like,
00:42:53
Speaker
those points that are important to you as a founder and you really want that investor to understand, really, you know, be really prominent in that investors or analysts top of mind. Yeah. Yeah. Yeah. I think that's something that's so underestimated as well, because like you said, right, this person is going to be the one who's going to be responsible for bringing you to that deal flow. So if you don't get that part right, and they don't understand exactly what you guys are doing, you know, tell them, you know, it's highly likely they won't understand the exact business model straight away.
00:43:23
Speaker
Exactly, exactly. And honestly, I think this is something you're working and your company, you have been working on this topic in your company, I don't know, multiple years, let's say, person, you know, learns about your company in 30 minutes, or in, I don't know, 15 minutes or even less, right. So I think and has less, probably less experience on that topic, etc, etc. So I think,
00:43:49
Speaker
This is something you should always keep in mind. This is not something that is due to lack of knowledge or lack of expertise or lack of anything. This is just how the job works. We see so many different startups every day.
00:44:09
Speaker
And yeah, just make that person your internal champion. I think also personal component is always something that you should keep in mind. If the person is comfortable with you, if they even have sympathy for you, this can help too. Yeah.
00:44:34
Speaker
Yeah, yeah, yeah. No, honestly, those are such great insights. I mean, even I'm sitting here learning a lot and I think there's so many takeaways which founders can take from this conversation. Thank you so much for joining me, Isabelle. And yeah, excited for everyone to hear about this.