Fred Wilson: some VC lessons from one of the best in the business

A couple of days ago, Fred Wilson, co-founder and managing partner of Union Square Ventures (USV), one of the most reputable and successful VC firms in the world, and the blogger behind AVC (a must read blog for anyone interested in the startup, tech and VC businesses) posted a video of a talk (the annual Georges Doriot Lecture) that he gave at MIT in Boston.

You can see the video here:

The chat is priceless and full of VC wisdom and I thought about summarizing some of the points that I found particularly interesting:

• A VC's most important role is that of a cheerleader (...). It is everything and just very few VCs can do it.

• The best time to invest in something  is when nobody believes in it besides you (...). You have to totally believe in it and you have to know why.

• Entrepreneurs and the companies they build are the VCs' customers - not the VCs' investors, who are their shareholders. The entrepreneurs are the center of gravity in the business and VCs are service providers to entrepreneurs.

• Even though venture capital requires a sophisticated understanding of finance, technology, markets and strategy, it is ultimately a people business.

• Three things that USV looks at when investing in an entrepreneur: charisma (the ability to convince people...it goes beyond salesmanship), technical expertise (knowing how to make aomething, not outsourcing the making of sonething to somebody else but leading it), integrity (honesty).

• In order to have better chances to succeed, he recommends angel investors to build a portfolio as broad as possible - broader than that of a traditional VC - and build networks with other angel investors. He also points out that angel investors should help entrepreneurs get to the VCs to raise their series A and subsequent rounds.

• On how to getting into VC as a profession, as a general piece of advice, very graphically he recommends spending your 20s and 30s working at startups as a path to dedicating your 40s, 50s and 60s to being a venture capitalist. Ironically, he feels like the best VC investors did not take that path.

Interestingly, as a closing remark, Fred pointed out that if he was 35 now he would probably go do VC investments in emerging markets.... anyone up for the next challenge?


Until next time!

My 2016 in review: the good, the bad & the ugly (of working at a young startup)

There are just a few hours left in this 2016. It's been a curious year, a bumpy, rollercoaster-kind of ride with a lot of takeaways and learned lessons. It's time to look back and do a sincere and objective assessment from a professional standpoint.

THE GOOD
(1) 2016 has given me the opportunity to work in the kind of startup environment that I had longed for quite some time, after having worked at multinationals pretty much all my life. I see that as a big success in itself after my bet on pursuing this path and my overcoming the hurdles that I had to face as a result of immigration issues kicking me out of the U.S.

(2) I have learnt a lot of new things following my jumping into an unknown territory that included a new industry, a different role, and multiple and diverse responsibilities. I have had the opportunity to be out there "in the trenches" to a larger extent, to expand my network, to work and get to know some great colleagues and to experience first hand a different way - improvisation, flexibility, I am embracing you - of doing things.

(3) I have been able to go way beyond my comfort zone and to challenge myself as I had not done in quite some time. I am satisfied with my overall performance but, above all, I value my daring to do so. Plus I strongly feel that this has helped me gain new skills and change my personal brand, as I explained in this post.

(4) Leading a learning the in & out's of a fundraising process has been priceless. I have enjoyed every minute of it: from researching, identifying and reaching out to domestic and international investors, to crafting pitch documents, presenting to investors and at different events and negotiating. It's been the most exciting and challenging thing I have done in years.

(5) Enjoying again what going to work means. I had forgotten that magic mix of excitement, cheering, happiness, challenge, commitment... I am aware that such a thing does not last forever but experiencing it again was awesome.

(6) Last but not least, I will remember 2016 as the year in which I was given the opportunity to pursue an exciting fintech opportunity in Berlin, one of the world's tech hubs - more on that here. There is no doubt that it will be a big challenge, both personal and professional, yet I am looking forward to starting.

THE BAD
(1) Things have not finished as I had envisioned them. Twelve months ago I was fully invested in a project and had the stamina and the confidence that we were on the path to building one of the next great companies. Even after having voluntarily decided to part ways, I can't avoid a somewhat bitter feeling of unfinished work and personal failure.

(2) Internal politics. When referring to corporate feuds, I guess we all tend to think of bankers, corporate finance titans such as Gordon Gekko or of powerful Fortune 500 companies' CEOs. Unfortunately, this happens everywhere, even in young startups. And assuming of course that such feuds are no good anywhere in the vast majority of cases, I dare to say that the harmful effects are more relevant in young, smaller companies. Disappointment is probably the word that best describes how I feel about that.

THE UGLY
(1) It is cold out there beyond established corporations. Success stories tend to make people think that building a startup - from coming up with an idea through to a billion dollar IPO - is way easier than it actually is. In most early-stage cases, you have limited resources, you do not have a powerful brand to leverage in your sales pitch, you have no significant track record to negotiate with banks and other stakeholders, you face dead-ends any other day... There are times when you feel powerless. You already knew it and embraced the challenge, true...but still.

(2) Having everyone pushing in the same direction and under the same vision is tough. Being able to align everyone in the team, from the CEO to the last intern, is not an easy task. Learning (or trying) to navigate the time-bomb resulting from human relationships in scenarios of uncertainty and cash pressure, is a priceless lesson that I definitely did not learn in my managing organizations course while at business school.

(3) As mentioned above, over the last year I was able to enjoy my work again. But at the same time, I experienced some of the worst days in my career to date. By joining a young, promising project I was confident that I would experience the former, but I would have never expected the latter. Even if this has been the case, I can assure you that I have learnt a lot from the experience, from both my mistakes and those of others.


Overall, in hindsight and having had time to reflect on all these experiences, I can say that it's been a valuable year. Let's see if 2017 is a better year, with more "good's" and fewer "bad's" and "ugly's".

My best wishes to y'all for the coming year!

Reinventing yourself and changing your own market perception

Twenty four months ago I was working in New York and taking the first steps towards what would turn out to be my first job offer at a startup. It was the culmination of a long process - it took me years to get there - that ultimately did not work as planned (after accepting the offer I had received, US immigration authorities ruled out against granting me an O-1 visa that would have replaced my then in force L-1 visa).

Things have evolved substantially since then. Shortly after the disappointment I experienced when my visa got denied, I landed a job at another startup in Spain and, a bit less than 1 1/2 years later, I will be shortly taking a new role at a promising fintech company in Berlin as country manager for Spain.

Even though I cannot say that I have hit a home run yet, I can't help feeling a sense of pride for having accomplished a big transition from professional services - first as an M&A and finance attorney, then in biz dev roles - into the startup space. Little by little, after investing a lot of time and effort, I have been able to change the market perception of my own brand as an employee.

Although certain countries tend to have more flexible recruiting cultures that appreciate transferable skills - e.g. I find the US quite flexible, while Spain is just the opposite - your college degree and work experience will vastly determine how you are perceived in the job market. As you grow older, the "weight" of such background becomes heavier and makes switching industries and functions increasingly harder.

That being said, I thought it would be useful to share my experience and contribute a few thoughts from my own "reinvention" process:

1. Understand your role's and industry's perception: some functions (e.g. financial roles) and sectors (e.g. management consulting) put you in a better place to make a transition, even at a young age. Some others (e.g. law practice - that was my case) are more ring-fenced and harder to leverage outside of their own circle.

Don't get caught for too long in something you know you don't want to do long term, even if it pays well (and assuming you can afford to let it go). You will regret it a few years later.

2. Leverage the master's degree window of opportunity: studying some kind of master's degree can be a good way to change roles and industries (again, I find Anglo-Saxon work cultures more open to change than others). However, bear in mind that the window of opportunity for such a transition is limited: 1 to 1.5 years following graduation, I'd say.

For instance, I completed my MBA from NYU to pursue such change in 2008 when, unfortunately, everything started to fall apart; so my ability to switch was severely compromised.

3. Embrace the two-step transition: you may be able to switch functions and industries at once, but doing so in two separate steps is more realistic and financially rewarding. Leverage what you already know for tour first move; then use what you are learn (and who you know) at your new gig to complete the second step.

I transitioned from being a lawyer to business development roles in professional services. Then, I was able to switch to business-oriented roles in the tech space.

4. Get out of your day-to-day comfort zone: if you want things to change but you keep doing the same things that you typically do in your usual work environment, such change will be much harder. You need to let fresh air into the room. Get out of your comfort zone and find ways to get closer to the industry where you want to be.

I find events and meet-ups particularly useful in this regard. There are plenty of things out there in substantially every industry, so start digging up information and investing time. It is going to be a bit stressful and tiring, but nothing is free, I'm afraid.

Also, network carefully and regularly. Reach out to friends and acquaintances who can make an intro for you. Sometimes it will feel a bit awkward and overwhelming to take the first step but, in my experience, a majority of people are willing to help if they can. Be tactful, thankful and open to return the favor.

5. Show that you really want it: there are many ways these days in which you can show where your interests lie. Start following people and being active (tweet, retweet) on Twitter, start your own blog covering the topics and industries you are targeting, open a Medium profile, be mindful of your Linkedin profile (share your content, tailor your profile), etc.

Again, this will take quite a bit of time but you have an arsenal at your reach.

6. Worship your job hunting: looking for a job is not easy, it is a job in itself, even more so if you are fighting to get to a place where you have never been before.

On the one hand, make sure that you are looking in the right places (it is not the same to look for jobs in, say, startups, than in pharma companies). Once you have spotted those, create customized job search agents to spot openings in a centralized way, search regularly, be methodic and keep track of where and when you are looking.

On the other, make sure that your resume and cover letters convey the messages that you need, both in terms of framing and adapting your background in an appealing way (as you will seldom be as well suited for the roles as others with more specific experience) and highlighting the passion and interest that you have in a specific area.

And if you make it to an interview, research the company as if there was no tomorrow. This is an area where you can beat other candidates who, at first sight, may be better suited for the role.

7. Don't be desperate. It takes time to change jobs. It takes even more time to do so when you are switching drastically. Keep trying, hang in there and cheer yourself for any small accomplishment.

I wish I had been able to transition well before it happened. There were times when I thought about giving up as things were not moving as I would have expected. But I was resilient...and it ultimately paid off.


I hope this helps, until next time!

A millenial trapped in a Gen Xer?

It is not easy to look back and self-assess one's career and progression. It is even harder - in particular in countries/societies that are rather traditional when it comes to what is considered "right" (college degree - job - wife - mortgage - kids = stability) - to take a detour in your career as you grow older. People, in particular those from older generations than mine, tend not to understand the rationale and motivations to abandon the "right" path.

It is obvious to me that such decisions are, to some extent, driven by your personal circumstances. If you have no financial (mortgage, student loans) and/or personal (spouse, partner, kids, sick relatives, etc.) obligations, there is more room to take chances and risks that otherwise you wouldn't. And a bit of common sense is always appreciated, as in any other area.

I can speak about all this based on my own experience. In my mid-late twenties I left a promising career as an attorney at one of the main global law firms to switch paths and to go on the once-in-a-lifetime experience of studying a top full-time MBA and living in New York. Now in my mid-late thirties I have quit a stable, very well paying job at a top firm, to (at least try to) pursue a career in technology/startups, and to even explore launching my own business. It is that time of my life where I need to feel passionate about what I do, experience a feeling of belonging and enjoy doing whatever it is that I do. For me, now is the right time. It is probably the only time in my life so far where my personal circumstances, my aspirations and my degree of risk aversion (whatever that is) are aligned.

Kleiner Perkins' view on millenials

Call it wishful thinking, call it dissatisfaction, call it not settling for just money... or simply call me a millenial in the body of a (late) Generation X guy. From a values standpoint, I feel much closer to the former than to the later (for whom the future is gloomy, according to Bloomberg), maybe I should have been born just a few years later...

Over the last 4 years I have continued following closely, becoming increasingly acquainted and further embracing my passion for technology and the startup scene (as I predicted in a post in 2011, I have for the most part been monitoring all this activity via Twitter instead of by blogging). All this has led me to work hard - reading, networking, interviewing... - to give one last try at making a professional move into such space.

A few months ago I signed an offer to join a great NY startup. All seemed to be ok until US Immigration Services came my way by denying a work visa - it is no relief (it is actually quite sad), though, to see that a lot of people in the startup world are facing similar issues in the U.S.. This is one for the next president to address.

This is the somewhat uncertain situation where I stand now, yet more energized, committed and optimistic than ever before.