The Exchanges

Q Oh, and I have to ask, the amazing feedback I got, um, from everyone, but especially the founders, and how aligned you are, and the relationships you have with them, how do you give negative feedback, or challenging feedback, and retain this? Help me out. Yes.

A I'll give an example. So because I've invested at the later stages of scale ventures, I could tell that one of the founders I get to work with at Seed is lagging behind go to market. Now, if I was a Schrodinger's VC, I would look the other way and spend my time elsewhere. I'm not one of those. And so what I did, I reached out to 50 potential customers. I put together a document on the feedback. I prepared the list of 15 companies and where they were in revenue each quarter. I presented the material together to the founder, and I've made intros for him to other founders who have overcome that hurdle. Founder to founder talk always beats VC talk. That way you show that you're supportive, you also put the bone to work, and you provide data so the founder themselves, they actually can reach to that conclusion.

AI assessment note: “provide data so the founder themselves, they actually can reach to that conclusion.”

Q Can I, can I just ask you a blunt question, which is like, it's a massive move, like moving, you know, halfway around the world to the U.S. without knowing people, without having a support network. Were you nervous, and how did it feel as a young person uprooting your life?

A It was different than it. I think maybe because when you're young, you take more risks, but I think it's also the fact that many people don't realize that wasn't the first time I moved somewhere. The, it was a lot harder to move to Germany, um, having only known English and French, no German, and being away from home for the first time and away to a totally different country and Not having a mobile phone, um, not having a laptop, trying to get all the things set up for myself. So coming to the US was easier because I knew the language. I knew I want to come back ever since the NASA, the NASA experience, I knew I want to come back. So it was everything I was wishing for, but yes, it was a shock, especially as a European to arrive at the airport and realize there is no easy public transportation to where you were going and you have to rent a car and drive everywhere.

AI assessment note: “it was everything I was wishing for, but yes, it was a shock”

Q Oh, and I have to ask, the amazing feedback I got, um, from everyone, but especially the founders, and how aligned you are, and the relationships you have with them, how do you give negative feedback, or challenging feedback, and retain this? Help me out. Yes.

A I'll give an example. So because I've invested at the later stages of scale ventures, I could tell that one of the founders I get to work with at Seed is lagging behind go to market. Now, if I was a Schrodinger's VC, I would look the other way and spend my time elsewhere. I'm not one of those. And so what I did, I reached out to 50 potential customers. I put together a document on the feedback. I prepared the list of 15 companies and where they were in revenue each quarter. I presented the material together to the founder, and I've made intros for him to other founders who have overcome that hurdle. Founder to founder talk always beats VC talk. That way you show that you're supportive, you also put the bone to work, and you provide data so the founder themselves, they actually can reach to that conclusion.

AI assessment note: “you show that you're supportive, you also put the bone to work, and you provide data”

Q Can I, can I just ask you a blunt question, which is like, it's a massive move, like moving, you know, halfway around the world to the U.S. without knowing people, without having a support network. Were you nervous, and how did it feel as a young person uprooting your life?

A It was different than it. I think maybe because when you're young, you take more risks, but I think it's also the fact that many people don't realize that wasn't the first time I moved somewhere. The, it was a lot harder to move to Germany, um, having only known English and French, no German, and being away from home for the first time and away to a totally different country and Not having a mobile phone, um, not having a laptop, trying to get all the things set up for myself. So coming to the US was easier because I knew the language. I knew I want to come back ever since the NASA, the NASA experience, I knew I want to come back. So it was everything I was wishing for, but yes, it was a shock, especially as a European to arrive at the airport and realize there is no easy public transportation to where you were going and you have to rent a car and drive everywhere.

AI assessment note: “it was everything I was wishing for, but yes, it was a shock”

Q speak to that founder? I would love to hear. Uh, so I totally agree with you there. Okay. So now we've kind of hopefully discovered The, you know, Schrodinger from the non Schrodinger. Love this statement. Um, let's just say we made a mistake, Ioana, and we're in the position now where we have one. How do we extract value from one we already have on the cap table? Yes.

A So the good news is you can extract value and it's up to you as a founder, how to manage and keep them accountable and give them homework. For example, one of my companies asked me, how do you nail platform ICP? What I did was I went, did the work, collected the results and presented it back to the founder together with a list of potential intros to relevant people. What doesn't work is you sending material or a deck before a board meeting with no asks. Usually those tend to go, uh, for example, the founder presents, the VC listens, there is nothing being shared back, and that's a waste of time, and, and time is precious, should not be wasted.

AI assessment note: “manage and keep them accountable and give them homework.”

Q I totally agree with you. Can I ask, in terms of like, uh, Schrodinger's VC, um, and, it's brilliant, does it matter? And what I mean by that is, in the last few years, we've seen fast, cheap capital, and it's not Been particularly useful, either good or bad. Does it matter, and how do you advise founders on whether actually net neutral's okay? Do you know what I mean?

A Well, I think, as you said, in the past years that has happened, which has led to a bunch of besides Twitter jokes about how useless the VCs are also, it led to very low expectations. Right now, many founders will tell you that if a VC is not harmful to the company, that's already a success. And I say the expectations should be higher from founders because while a VC cannot play the Chess game for you and move the pieces. They have seen a lot more games and therefore they can advise from near the chess board and there is value in that to the founder and the value is there. It's up to the founder to extract it and manage the VC and give them homework.

AI assessment note: “I say the expectations should be higher from founders”

Q Okay, this is too, I love that. I didn't know that was the explanation. Okay, so first, how can we tell a Schrodinger VC before we get into a formal relationship with them? What questions can we ask? How do we determine it?

A Think three things. One, you have to really pay attention in the diligence process. Do they act in service of you? Not talk, act in service of you. Second, you have to select from first principles. You're rather selecting a partner rather than a firm. Would you rather go to Harvard and have an awful professor or maybe go to an okay school and learn from somebody amazing? Um, third, do you know how they react to bad news when everything, you know, the ARR, the curve is up, everything is great, but when things are not so good, that's when in face of adversity, true character gets revealed. So a positive sign would be them walking you through their entire portfolio, and especially how they serve the founders when things were not going so well. A negative sign would be Them taking credit for the founders work, and there's nothing more sinister than that.

AI assessment note: “Think three things. One, you have to really pay attention in the diligence process.”

Q speak to that founder? I would love to hear. Uh, so I totally agree with you there. Okay. So now we've kind of hopefully discovered The, you know, Schrodinger from the non Schrodinger. Love this statement. Um, let's just say we made a mistake, Ioana, and we're in the position now where we have one. How do we extract value from one we already have on the cap table? Yes.

A So the good news is you can extract value and it's up to you as a founder, how to manage and keep them accountable and give them homework. For example, one of my companies asked me, how do you nail platform ICP? What I did was I went, did the work, collected the results and presented it back to the founder together with a list of potential intros to relevant people. What doesn't work is you sending material or a deck before a board meeting with no asks. Usually those tend to go, uh, for example, the founder presents, the VC listens, there is nothing being shared back, and that's a waste of time, and, and time is precious, should not be wasted.

AI assessment note: “how to manage and keep them accountable and give them homework”

Q honestly, I shouldn't help and I think it is their job. So I think, you know, whether it's customer intros, whether it's Getting hires over the line, but I shouldn't be in charge of the hiring process. Like, your job as a founder is to fund, hire, and expel the mission. Do you, what do you think the founders should monitor and own versus should lean on their VCs for?

A Yes, I do believe that hiring is a founder's job, but that doesn't mean for me as a VC I cannot source them diverse candidates, I cannot guide them how to filter for culture in the process, that I cannot help them land amazing candidates in the final stages of the process. So all those things providing the perspective Showing them maybe ahead of time when there is a crucible moment because you've done this many times and you can sense that. Or to give an example, maybe you can sense when they are lagging behind go to market and they will be heading towards a very difficult fundraising process for the series A. That's a conversation a VC can have and can help the founder realize that and get back into gear. The founder is doing the work. You're just advising.

AI assessment note: “The founder is doing the work. You're just advising.”

Q Okay, this is too, I love that. I didn't know that was the explanation. Okay, so first, how can we tell a Schrodinger VC before we get into a formal relationship with them? What questions can we ask? How do we determine it?

A Think three things. One, you have to really pay attention in the diligence process. Do they act in service of you? Not talk, act in service of you. Second, you have to select from first principles. You're rather selecting a partner rather than a firm. Would you rather go to Harvard and have an awful professor or maybe go to an okay school and learn from somebody amazing? Um, third, do you know how they react to bad news when everything, you know, the ARR, the curve is up, everything is great, but when things are not so good, that's when in face of adversity, true character gets revealed. So a positive sign would be them walking you through their entire portfolio, and especially how they serve the founders when things were not going so well. A negative sign would be Them taking credit for the founders work, and there's nothing more sinister than that.

AI assessment note: “Think three things. One, you have to really pay attention in the diligence process.”

Q I totally agree with you. Can I ask, in terms of like, uh, Schrodinger's VC, um, and, it's brilliant, does it matter? And what I mean by that is, in the last few years, we've seen fast, cheap capital, and it's not Been particularly useful, either good or bad. Does it matter, and how do you advise founders on whether actually net neutral's okay? Do you know what I mean?

A Well, I think, as you said, in the past years that has happened, which has led to a bunch of besides Twitter jokes about how useless the VCs are also, it led to very low expectations. Right now, many founders will tell you that if a VC is not harmful to the company, that's already a success. And I say the expectations should be higher from founders because while a VC cannot play the Chess game for you and move the pieces. They have seen a lot more games and therefore they can advise from near the chess board and there is value in that to the founder and the value is there. It's up to the founder to extract it and manage the VC and give them homework.

AI assessment note: “And I say the expectations should be higher from founders”

Q should, and I love that in terms of the ally, by the way, do you think the board should have, I've had VCs on the show before, and they say, the board should meet afterwards without the founder, and like, review. Do you think that should happen, or is that not a necessary action, and what do you think are the necessary actions post-board meeting that you like to do?

A I have boards where the board members definitely like to meet afterwards. I think getting alignment and knowing where everybody is in terms of maybe their worries or things they can do for the founder, but then always debriefing with the founder. I always debrief with the founder and give positive as well as constructive feedback and offer help For some of those topics. So I do think it's helpful, especially if you want to have everybody aligned and maybe you're an earlier stage company rather than a later stage company. And for later stage companies, um, it's also important to set up the expectations in terms of the quarter debrief on the different functional leaders. You've seen all of that stuff.

AI assessment note: “I do think it's helpful, especially if you want to have everybody aligned”

Q honestly, I shouldn't help and I think it is their job. So I think, you know, whether it's customer intros, whether it's Getting hires over the line, but I shouldn't be in charge of the hiring process. Like, your job as a founder is to fund, hire, and expel the mission. Do you, what do you think the founders should monitor and own versus should lean on their VCs for?

A Yes, I do believe that hiring is a founder's job, but that doesn't mean for me as a VC I cannot source them diverse candidates, I cannot guide them how to filter for culture in the process, that I cannot help them land amazing candidates in the final stages of the process. So all those things providing the perspective Showing them maybe ahead of time when there is a crucible moment because you've done this many times and you can sense that. Or to give an example, maybe you can sense when they are lagging behind go to market and they will be heading towards a very difficult fundraising process for the series A. That's a conversation a VC can have and can help the founder realize that and get back into gear. The founder is doing the work. You're just advising.

AI assessment note: “The founder is doing the work. You're just advising.”

Q should, and I love that in terms of the ally, by the way, do you think the board should have, I've had VCs on the show before, and they say, the board should meet afterwards without the founder, and like, review. Do you think that should happen, or is that not a necessary action, and what do you think are the necessary actions post-board meeting that you like to do?

A I have boards where the board members definitely like to meet afterwards. I think getting alignment and knowing where everybody is in terms of maybe their worries or things they can do for the founder, but then always debriefing with the founder. I always debrief with the founder and give positive as well as constructive feedback and offer help For some of those topics. So I do think it's helpful, especially if you want to have everybody aligned and maybe you're an earlier stage company rather than a later stage company. And for later stage companies, um, it's also important to set up the expectations in terms of the quarter debrief on the different functional leaders. You've seen all of that stuff.

AI assessment note: “I do think it's helpful, especially if you want to have everybody aligned”

Q I love that. That's, uh, that's fantastic. A deck full of memes. Um, what would you most like to change about the world of venture?

A I would like for, for VCs to pay more attention to the founders, listen to them and, and do more work and maybe change a bit the, the reputation that a VC has. I, even today when somebody calls me a VC, I cringe a little because I don't see myself as the vest wearing person who talks a big game is a blowhard and You know, does not really care about the founders. Um, that's not me. And I think that kind of perception deters other people like me to get into ventures. And to be honest, the only reason how I landed in ventures is I'm an immigrant. Scale promised me to sponsor a green card. And, and I said, sure, I can be a VC. And while I was a VC, I got a taste for working with founders and And I felt like this is, this is, doesn't feel like a job to me when I work with the founders. And so I didn't know I want to be a VC until I was one for immigration reasons.

AI assessment note: “I would like for, for VCs to pay more attention to the founders”

Q That's amazing to hear, but I want to start with a little bit on you. So tell me, from Romania to studying in Germany, I heard little bits about driving tanks, not the usual HBS and, you know, living in Menlo Park. So how did you come to venture and come to be the rising star, as we said, and now obviously a partner at SignalFire?

A Um, so I grew up in Romania in a village until the age of 18. At 18, I won this grand prize in a contest organized by NASA, and that was the first time for me on a plane. I was flying to Mountain View to NASA Ames, and there I was mesmerized by the amount of intelligent system work they're doing, and I knew I have to be in software. So I get back home, and I tell my dad I want to go to college, and he got the shock because this was something new for our family. Um, and I moved to Germany by myself to study computer science, actually machine learning, back when math lab was the only MLOps tool around. Um, after classes, I was working for, um, SAP and two other jobs, but SAP was the one who got me back to the Bay Area. I transferred into their Palo Alto office. My first experience in the US was finding a room to rent on Craigslist, and I ended up living in the house of the Head of microelectronics division at Atari. Um, I was and still am a diehard Atari fan, so I was starstruck when I met Mr. Robert Brown, and that's when I felt like I truly arrived to, to the valley.

AI assessment note: “that's when I felt like I truly arrived to, to the valley.”

Q I love that. That's, uh, that's fantastic. A deck full of memes. Um, what would you most like to change about the world of venture?

A I would like for, for VCs to pay more attention to the founders, listen to them and, and do more work and maybe change a bit the, the reputation that a VC has. I, even today when somebody calls me a VC, I cringe a little because I don't see myself as the vest wearing person who talks a big game is a blowhard and You know, does not really care about the founders. Um, that's not me. And I think that kind of perception deters other people like me to get into ventures. And to be honest, the only reason how I landed in ventures is I'm an immigrant. Scale promised me to sponsor a green card. And, and I said, sure, I can be a VC. And while I was a VC, I got a taste for working with founders and And I felt like this is, this is, doesn't feel like a job to me when I work with the founders. And so I didn't know I want to be a VC until I was one for immigration reasons.

AI assessment note: “I would like for, for VCs to pay more attention to the founders”