The Exchanges

Q And then moving back to your time at Warburg Pincus in San Francisco, what would you say your biggest takeaway was from your time there?

A You know, I think in general, um, having spent time in the Valley is, uh, There is no, you know, there is no secret sauce about that place, right? It's not that the water is different, or there's something in the air. Um, It's just, you know, people trying to be innovative and then, you know, having access to capital. And so I think one of my beliefs and one of the reasons that I made the move to Europe is that innovation certainly is not limited to the west coast of the United States, right? And so if you think about, you know, all the channels available today, you know, mobile, internet, et cetera, the location is actually becomingly Increasingly less important, right? And, and it puts significantly more emphasis on, um, on ideas and, um, the, the quality of the teams behind it. And, and so, you know, if anything, I would say, you know, my, my takeaway is, um, is that the, the next big entrepreneurs can be anywhere, and, uh, I'm excited to be looking for them in Europe.

AI assessment note: “my takeaway is, um, is that the, the next big entrepreneurs can be anywhere”

Q Absolutely. And you say you wish to partner with great, uh, founders wanting to build Huge companies. How can you tell whether the founders have the ability to exploit that market? Are there any tells within the founders characteristics which kind of reveal them?

A Yeah. So, I mean, look, there's, there is the easy things, like all else being equal, it helps to have a relevant background in the space that you're going after, right? Especially the more complex and esoteric the space is, um, the, the more relevant that is, right? So if you are trying to, um, you know, build, build an insurance company or sell something to the insurance space, Um, it has enough complexity and regulation in it where it might be helpful for the entrepreneur to be familiar with that space, right? So I think that's, that's one. Um, I think, um, really A passion or obsession for, for the topic is, is important as well, right? That you have, you have a reason to really go after it, and you're excited about it. Um, and, um, you know, the other things that I'm looking for is, um, a nuanced insight from the entrepreneurs. You know, what, what is it that they have understood about the market that is going to enable them to To do well and to create a new company, uh, where there's probably plenty of, uh, of existing companies going after the opportunity, right? Um, you know, what, why is now a good time to, uh, to start this new approach, uh, and, and, and why will this approach work, right? And so, you know, I love coming out of meetings and saying, oh, wow, I didn't know this. I really learned a lot.

AI assessment note: “helps to have a relevant background in the space that you're going after”

Q And do you think it's important for VCs then to have the entrepreneurial experience? We often hear that, you know, VCs need to be founders, and what would you, how would you respond to that?

A Well, I, I hope that's not true, because I, I don't have a founder background, but I think that's, that's a very fair question. So, you know, I mean, the way I think about this is, um, All else being equal, all incremental experience helps. And so if you can have somebody who has had prior entrepreneurial experience, all else being equal, uh, you'd like that, right? And, and the question is, is more, um, around to, to, to what extent that's, that's necessary, right? Because fundamentally as, as a VC, I am, um, An investor, not an operator, right? And, and, and so, so where, uh, where I work with companies is, you know, strategic decisions, uh, introductions, hiring, uh, and, and, and being a trusted advisor. And so, it's that what entrepreneurs want, uh, from a partner. And, and, and so, uh, If you get that from an entrepreneurial background, that's, that's great, but ultimately it's slightly different skill sets, uh, that you need to, to run a company versus to invest and sort of have pattern recognition and et cetera, et cetera. So, you know, the, that's a long winded way of saying that I think it's great to have that. Uh, I don't think it's a must have.

AI assessment note: “I think it's great to have that. Uh, I don't think it's a must have.”

Q And then moving back to your time at Warburg Pincus in San Francisco, what would you say your biggest takeaway was from your time there?

A You know, I think in general, um, having spent time in the Valley is, uh, There is no, you know, there is no secret sauce about that place, right? It's not that the water is different, or there's something in the air. Um, It's just, you know, people trying to be innovative and then, you know, having access to capital. And so I think one of my beliefs and one of the reasons that I made the move to Europe is that innovation certainly is not limited to the west coast of the United States, right? And so if you think about, you know, all the channels available today, you know, mobile, internet, et cetera, the location is actually becomingly Increasingly less important, right? And, and it puts significantly more emphasis on, um, on ideas and, um, the, the quality of the teams behind it. And, and so, you know, if anything, I would say, you know, my, my takeaway is, um, is that the, the next big entrepreneurs can be anywhere, and, uh, I'm excited to be looking for them in Europe.

AI assessment note: “my takeaway is, um, is that the, the next big entrepreneurs can be anywhere”

Q And in previous interviews, you've stated that Axel is stage agnostic. Why do you think Axel is stage agnostic, firstly?

A Yeah. Um, you know, I think philosophically the belief is that We are in the business of trying to identify and partner with the greatest entrepreneurs, uh, with, uh, with the most exciting ideas. And, and ultimately that definition does not in it include, and it must be a company in stage X, Y, Z, right? So, so, so, so we, uh, you know, if we meet an entrepreneur that we are excited about, uh, uh, her, his idea and, um, We, we, uh, we think that they are going to be able to execute upon it, um, You know, we can't really tell them, oh, you know, I'm sorry, I think, you know, you, you are a little bit ahead or behind of where our sweet spot is. It's much easier to say, uh, we are flexible and we want to try to help you, uh, regardless of the stage that you're in on your journey.

AI assessment note: “philosophically the belief is that We are in the business of trying to identify”

Q Absolutely. And you say you wish to partner with great, uh, founders wanting to build Huge companies. How can you tell whether the founders have the ability to exploit that market? Are there any tells within the founders characteristics which kind of reveal them?

A Yeah. So, I mean, look, there's, there is the easy things, like all else being equal, it helps to have a relevant background in the space that you're going after, right? Especially the more complex and esoteric the space is, um, the, the more relevant that is, right? So if you are trying to, um, you know, build, build an insurance company or sell something to the insurance space, Um, it has enough complexity and regulation in it where it might be helpful for the entrepreneur to be familiar with that space, right? So I think that's, that's one. Um, I think, um, really A passion or obsession for, for the topic is, is important as well, right? That you have, you have a reason to really go after it, and you're excited about it. Um, and, um, you know, the other things that I'm looking for is, um, a nuanced insight from the entrepreneurs. You know, what, what is it that they have understood about the market that is going to enable them to To do well and to create a new company, uh, where there's probably plenty of, uh, of existing companies going after the opportunity, right? Um, you know, what, why is now a good time to, uh, to start this new approach, uh, and, and, and why will this approach work, right? And so, you know, I love coming out of meetings and saying, oh, wow, I didn't know this. I really learned a lot.

AI assessment note: “it helps to have a relevant background in the space that you're going after”

Q I, I've researched well. So what are your key value adds, do you think, and how do you think these have changed over time since you've become, you know, a more seasoned investor?

A Yeah. I mean, look, um, I, I think some of it is, is it common with regards to, you know, sort of sectors and dynamics in it. So, so we, we do not look, for example, at cleantech or biotech because, you know, I know nothing about that space. So, um, I think all else being equal, I would probably more, a more effective investor in, in technology. I think, um, the main, um, There's a couple of main values, right? One of them is, is to be a trusted advisor to the entrepreneur or entrepreneurs, right? To, to really, uh, have, have the trust and, and, and be able to, to brainstorm ideas with them and, and propose strategies and, and, and give them feedback, right? Um, another one is, is pattern recognition and strategic insight, and that's clearly something that, that improves over time, right? So the more, I am in particular situations, and the more I observe certain things happen, the better I can, um, next time formulate an opinion or, uh, you know, draw back on, on, on the things that I had seen before. Um, um, the, the other couple of things that are important are, um, introductions, of course, right? So, Partners, customers, uh, useful people to talk to. And that is, again, it's a personal network that is increasing its size as, uh, as I have more experience, uh, in the industry. Um, hiring, uh, help with hiring is, is another important one. And, and, and last but not least, i…

AI assessment note: “another one is, is pattern recognition and strategic insight, and that's clearly something that, that improves over time”

Q And in previous interviews, you've stated that Axel is stage agnostic. Why do you think Axel is stage agnostic, firstly?

A Yeah. Um, you know, I think philosophically the belief is that We are in the business of trying to identify and partner with the greatest entrepreneurs, uh, with, uh, with the most exciting ideas. And, and ultimately that definition does not in it include, and it must be a company in stage X, Y, Z, right? So, so, so, so we, uh, you know, if we meet an entrepreneur that we are excited about, uh, uh, her, his idea and, um, We, we, uh, we think that they are going to be able to execute upon it, um, You know, we can't really tell them, oh, you know, I'm sorry, I think, you know, you, you are a little bit ahead or behind of where our sweet spot is. It's much easier to say, uh, we are flexible and we want to try to help you, uh, regardless of the stage that you're in on your journey.

AI assessment note: “we are in the business of trying to identify and partner with the greatest entrepreneurs”

Q And do you think it's important for VCs then to have the entrepreneurial experience? We often hear that, you know, VCs need to be founders, and what would you, how would you respond to that?

A Well, I, I hope that's not true, because I, I don't have a founder background, but I think that's, that's a very fair question. So, you know, I mean, the way I think about this is, um, All else being equal, all incremental experience helps. And so if you can have somebody who has had prior entrepreneurial experience, all else being equal, uh, you'd like that, right? And, and the question is, is more, um, around to, to, to what extent that's, that's necessary, right? Because fundamentally as, as a VC, I am, um, An investor, not an operator, right? And, and, and so, so where, uh, where I work with companies is, you know, strategic decisions, uh, introductions, hiring, uh, and, and, and being a trusted advisor. And so, it's that what entrepreneurs want, uh, from a partner. And, and, and so, uh, If you get that from an entrepreneurial background, that's, that's great, but ultimately it's slightly different skill sets, uh, that you need to, to run a company versus to invest and sort of have pattern recognition and et cetera, et cetera. So, you know, the, that's a long winded way of saying that I think it's great to have that. Uh, I don't think it's a must have.

AI assessment note: “I think it's great to have that. Uh, I don't think it's a must have.”

Q I, I've researched well. So what are your key value adds, do you think, and how do you think these have changed over time since you've become, you know, a more seasoned investor?

A Yeah. I mean, look, um, I, I think some of it is, is it common with regards to, you know, sort of sectors and dynamics in it. So, so we, we do not look, for example, at cleantech or biotech because, you know, I know nothing about that space. So, um, I think all else being equal, I would probably more, a more effective investor in, in technology. I think, um, the main, um, There's a couple of main values, right? One of them is, is to be a trusted advisor to the entrepreneur or entrepreneurs, right? To, to really, uh, have, have the trust and, and, and be able to, to brainstorm ideas with them and, and propose strategies and, and, and give them feedback, right? Um, another one is, is pattern recognition and strategic insight, and that's clearly something that, that improves over time, right? So the more, I am in particular situations, and the more I observe certain things happen, the better I can, um, next time formulate an opinion or, uh, you know, draw back on, on, on the things that I had seen before. Um, um, the, the other couple of things that are important are, um, introductions, of course, right? So, Partners, customers, uh, useful people to talk to. And that is, again, it's a personal network that is increasing its size as, uh, as I have more experience, uh, in the industry. Um, hiring, uh, help with hiring is, is another important one. And, and, and last but not least, i…

AI assessment note: “pattern recognition and strategic insight, and that's clearly something that, that improves over time”

Q at XXL, you do deep dives into particular sectors and industries to kind of hone in on the trends that are arising. And one of them, which you have, uh, Discussed recently is the consumerization of enterprise software. So, do you think there is room for improvement further on this? You know, we, we've, we've seen unicorns produced with the likes of Slack. Do you think we'll see many more?

A Yeah, I mean, I, I think, look, I think the big picture trend, uh, that, that we see is that, um, Enterprise used to be this monolithic organization where, um, you, you sold to, um, To one, to one person, um, right? And, um, who decided on behalf of that organization, you know, what technology you're gonna go with. And I think the trend has been to, to really look at the employees and, and their individual, uh, wishes and what it is they're looking for and, and to enable them to be more productive, right? And so individual employees, of course, are the same people Uh, at work as they are in, in their leisure time when we call them consumers, right? So it's, it's the same person that, uh, that shops somewhere or, uh, you know, is on the phone in the party that then sits in the office, and so there is no reason to believe that, uh, the, the way that they would like to interact with information and technology changes dramatically when, when they enter the office environment, right? And so, um, you know, as, as I would like to consume information, uh, Uh, on my mobile phone outside the office, uh, it, you know, it's probably fair to assume that that desire doesn't change significantly when, when I enter the office. Um, and so, so yeah, I, I, I think, um, software and, and enterprise tools are taking more and more, um, uh, you know, uh, a resemblance to, uh, to the things that we se…

AI assessment note: “Yeah, I mean, I, I think, look, I think the big picture trend”

Q at XXL, you do deep dives into particular sectors and industries to kind of hone in on the trends that are arising. And one of them, which you have, uh, Discussed recently is the consumerization of enterprise software. So, do you think there is room for improvement further on this? You know, we, we've, we've seen unicorns produced with the likes of Slack. Do you think we'll see many more?

A Yeah, I mean, I, I think, look, I think the big picture trend, uh, that, that we see is that, um, Enterprise used to be this monolithic organization where, um, you, you sold to, um, To one, to one person, um, right? And, um, who decided on behalf of that organization, you know, what technology you're gonna go with. And I think the trend has been to, to really look at the employees and, and their individual, uh, wishes and what it is they're looking for and, and to enable them to be more productive, right? And so individual employees, of course, are the same people Uh, at work as they are in, in their leisure time when we call them consumers, right? So it's, it's the same person that, uh, that shops somewhere or, uh, you know, is on the phone in the party that then sits in the office, and so there is no reason to believe that, uh, the, the way that they would like to interact with information and technology changes dramatically when, when they enter the office environment, right? And so, um, you know, as, as I would like to consume information, uh, Uh, on my mobile phone outside the office, uh, it, you know, it's probably fair to assume that that desire doesn't change significantly when, when I enter the office. Um, and so, so yeah, I, I, I think, um, software and, and enterprise tools are taking more and more, um, uh, you know, uh, a resemblance to, uh, to the things that we se…

AI assessment note: “software and, and enterprise tools are taking more and more, um, uh, you know, uh, a resemblance”