Interviews with Leaders in Fintech & Web3
Interviews with Leaders in Fintech & Web3
Acing the Startup Funding Process: Key Insights from Expert Jonathan Holis, Managing Partner, Mountside Ventures
Jonathan Holis is Managing Partner at Mountside Ventures. He joins Work in Fintech's Matthew Cheung to share insights about:
-The steps from idea to funding
-Breaking down the fundraising process
-Tips to close funding quickly and efficiently
1:01 How Jonathan went from PWC to founding a venture company
4:48 What does Mountside Ventures do
5:53 What is a fundraising process
8:00 Looking for the right investor
9:14 Different types of investors
11:04 Raising money is like sales
12:09 Valuation is more of an art than a science
14:48 Startup and funding terminology - what is a series A, B etc
16:55 How did you go about starting your own fund
23:12 Knowing your investor and how they raise money will help you close faster
24:48 Tips to speed up the investment process (decks, biz plans)
27:36 Lifecycle of an investment fund - VCs have to do the same fundraising process that startups do
30:56 Why is the UK a leader in fintech
Check out our website and subscribe to our mailing list to hear more about opportunities in fintech and web3.
Follow our socials Linkedin, Twitter, Youtube
https://workinfintech.com/
https://www.linkedin.com/company/work-in-fintech-global
https://www.twitter.com/workinfintech
https://www.youtube.com/channel/UCdS4bYoCXaHVgfVm6syUrDw
00:00:02:07 - 00:00:05:05
Hi, this
is Matthew Cheung from Work in Fintech.
00:00:05:07 - 00:00:08:07
And today I'm delighted to be joined
by Jonathan Hollis,
00:00:08:14 - 00:00:11:15
who's
a managing partner of Mountside Ventures.
00:00:11:17 - 00:00:15:14
He also cut his teeth PWC
where he helped to found
00:00:15:14 - 00:00:19:13
the raise and scale programs
that was helping early stage startups.
00:00:19:22 - 00:00:22:11
So hi Jonathan,
Thanks for joining us today.
00:00:22:11 - 00:00:23:20
Great to be here.
00:00:24:00 - 00:00:26:11
So we've known each other
00:00:26:11 - 00:00:30:00
a few years now, but about five, six,
seven years, something like that.
00:00:30:00 - 00:00:34:03
And we actually met through PWC
when with ipushpull
00:00:34:03 - 00:00:37:17
which I'm also a CEO of,
was looking to raise some money
00:00:38:03 - 00:00:41:08
and we can kind of go into start ups
00:00:41:08 - 00:00:44:01
and early stage
funding and talk about those
00:00:45:04 - 00:00:48:00
interesting factors
and things you need to know to make
00:00:48:00 - 00:00:50:13
that process more efficient
because that's essentially what you do.
00:00:51:00 - 00:00:53:09
But before you jump into that,
you want to just kind of introduce
00:00:53:09 - 00:00:55:19
yourself,
talk about some of your background,
00:00:56:09 - 00:01:00:00
talk about some of the story about kind of
how you've got to where you are today.
00:01:01:07 - 00:01:02:03
Sure.
00:01:03:06 - 00:01:05:10
So I was born in Brussels,
00:01:05:10 - 00:01:07:22
moved to the UK when I was eight.
00:01:08:12 - 00:01:09:17
I couldn't speak the language,
00:01:09:17 - 00:01:12:20
so that was a bit of a challenge,
but got to grips with it
00:01:14:01 - 00:01:19:06
in, you know, in a five or six year
periods and was raised
00:01:19:08 - 00:01:23:08
after the age of eight in the Midlands
to spend my time in work
00:01:23:19 - 00:01:27:19
and in Leamington and then went to uni.
00:01:28:08 - 00:01:33:00
My now wife's father requested
00:01:33:00 - 00:01:36:04
this only get a professional qualification
before marrying his
00:01:37:19 - 00:01:38:21
daughter. And so I did.
00:01:38:21 - 00:01:43:09
And they recommended the ACA,
which is the professional accounting
00:01:43:09 - 00:01:45:11
qualification
which I could highly recommend doing.
00:01:46:18 - 00:01:49:22
And the idea was it provides a grounding
00:01:51:10 - 00:01:55:09
for an educational perspective and a bit
of a passport to get into different jobs.
00:01:55:17 - 00:02:00:03
And so the idea is you learn the basics
of business through an accounting lens.
00:02:01:01 - 00:02:04:18
Did that for three years
and then that allowed you to open up
00:02:04:18 - 00:02:08:16
different opportunities, which is after
that, what I did and I explored
00:02:09:20 - 00:02:10:02
Peter.
00:02:10:02 - 00:02:12:03
We see a number of different secondments.
00:02:12:03 - 00:02:15:11
The I worked in the data team
because I got quite worried
00:02:15:11 - 00:02:18:17
that all of audit was going to become
00:02:18:17 - 00:02:19:18
done by robots.
00:02:19:18 - 00:02:21:00
So I thought I better start
00:02:21:00 - 00:02:24:21
learning a bit of programing,
but a code with a data lens.
00:02:25:17 - 00:02:28:02
And during my time actually
00:02:28:02 - 00:02:30:05
an audit did turn more into
00:02:31:09 - 00:02:32:03
tech.
00:02:32:03 - 00:02:35:08
So, you know, my first thought it,
I was sitting counting
00:02:35:08 - 00:02:38:03
invoices and checking documents.
00:02:38:11 - 00:02:40:14
By the time I left,
it was all done manually.
00:02:40:17 - 00:02:43:09
And the so it's all the way
00:02:43:09 - 00:02:46:18
through automation and the manual work
was only the risky items
00:02:47:00 - 00:02:48:08
anyway, so I did that for a bit.
00:02:48:08 - 00:02:50:18
That's a stint in the data team
00:02:51:05 - 00:02:53:14
also then got back to,
00:02:54:07 - 00:02:57:15
I guess, my interests and passion,
which is startups,
00:02:58:02 - 00:03:01:22
and so landed in the capital markets team.
00:03:01:22 - 00:03:05:08
And within that team normally
IPOs and capital markets is associated
00:03:05:08 - 00:03:09:15
with big companies, but
I had the opportunity of working with him
00:03:10:07 - 00:03:13:02
when they raised money
on their own platform to crack crack
00:03:13:08 - 00:03:18:17
at one of the big crowd funders
and they decided to raise 5 million plus
00:03:19:18 - 00:03:22:10
and they
decided to raise on their platform,
00:03:22:10 - 00:03:25:23
which is quite neat way of doing it,
worked on that transaction.
00:03:26:11 - 00:03:30:07
Which reminds me, the startups,
you know, is where my interests lie.
00:03:31:02 - 00:03:34:20
And so I then landed in the innovation
team at PWC.
00:03:34:20 - 00:03:36:11
We were tasked by the board
00:03:36:11 - 00:03:40:08
to try and build a proposition
that appealed to early stage companies.
00:03:40:10 - 00:03:43:19
PWC was known for its corporate clients,
00:03:44:05 - 00:03:47:03
but it had barely any presence
in the startup world.
00:03:47:19 - 00:03:50:23
And so I guess we had an objective
to make it
00:03:51:02 - 00:03:54:15
make it, but, you know, make it
well known or better known.
00:03:55:03 - 00:03:55:17
And so we did.
00:03:55:17 - 00:03:58:12
We built a couple of propositions
to service the industry,
00:03:58:19 - 00:04:02:13
and one of them was leveraging the clients
that Peter received
00:04:02:16 - 00:04:05:16
through a corporate accelerator type model
where companies come,
00:04:06:00 - 00:04:10:01
they pitch to maybe a room of Peter
B, C executives and also corporates
00:04:10:06 - 00:04:12:00
to try and land the deal.
00:04:12:00 - 00:04:16:07
And then the other was
then turned into a fund raising program,
00:04:16:09 - 00:04:19:04
which I think it was moved for with,
00:04:19:12 - 00:04:22:22
and that became a way
00:04:22:22 - 00:04:27:02
of supporting companies
on their fundraising journey, decided that
00:04:27:02 - 00:04:30:15
actually that was why I was interested
in having started the Proposition
00:04:31:11 - 00:04:34:20
seven years ago
now and decided three years ago to leave.
00:04:35:19 - 00:04:36:17
I'm launched
00:04:36:17 - 00:04:39:09
outside
it, along with two of the co-founders
00:04:39:15 - 00:04:42:15
who were also involved
in that proposition at
00:04:42:16 - 00:04:44:19
Peter B, C and who I am today.
00:04:46:05 - 00:04:49:05
So what amounts I do.
00:04:49:05 - 00:04:52:01
So we're looking to build Europe's
00:04:52:01 - 00:04:56:14
leading advisory firm,
specifically focused on fundraising
00:04:57:09 - 00:05:01:03
with a mission of optimizing
that process for founders and funds.
00:05:02:05 - 00:05:05:04
There's a lot of,
you know, if we take a step back
00:05:05:04 - 00:05:08:21
and look at the pain points that startups,
00:05:09:10 - 00:05:12:21
especially fintechs, face,
they fall into three categories
00:05:13:06 - 00:05:16:09
access to customers, access
to cash and access to talent.
00:05:16:22 - 00:05:20:20
And one of the things that you find
working for professional services firm
00:05:21:07 - 00:05:25:05
is that it's much more exciting
working with companies
00:05:25:12 - 00:05:29:06
where what you're selling is
what they want as opposed to compliance
00:05:29:16 - 00:05:33:02
and other regulatory work,
you know, like it like an audit.
00:05:33:11 - 00:05:36:08
And so we decided to focus
on this fundraising angle
00:05:36:17 - 00:05:40:10
because, you know, speaking to founders,
fundraising is is a big pain point.
00:05:40:18 - 00:05:44:04
And so as a result, that's
what we're trying to do with with outside.
00:05:44:05 - 00:05:47:23
We're trying to make
that fundraising process as efficient
00:05:47:23 - 00:05:51:20
as possible for both the founders,
but also for those investors investing.
00:05:52:15 - 00:05:53:21
So can you talk through
00:05:55:08 - 00:05:58:06
what a funding process is?
00:05:58:06 - 00:06:00:08
You know, if I'm starting
with a blank sheet of paper
00:06:00:18 - 00:06:04:00
over university at the moment,
I might have a great idea
00:06:04:15 - 00:06:08:15
how how do I take that
great idea to fruition
00:06:11:17 - 00:06:14:13
on the fundraising side
rather than go to market?
00:06:14:13 - 00:06:18:20
Yeah, I think that's that you can talk
for hours on the operating side.
00:06:18:20 - 00:06:21:14
Let's assume that you've got
a bit of traction and a bit of revenue
00:06:22:09 - 00:06:26:01
and that you're interested
in approaching investors.
00:06:26:01 - 00:06:30:15
I guess the first thing to do
is to make sure that you've got
00:06:30:15 - 00:06:34:22
a good set of documents,
you've got a good teaser or good debt
00:06:34:22 - 00:06:38:15
that you can show to people, and there's
lots of information on your website
00:06:38:23 - 00:06:39:10
to get them out.
00:06:39:10 - 00:06:42:05
So that account that we list
all of these resources on there.
00:06:42:05 - 00:06:45:00
But if you've got a good team
and a good, you know, some good materials,
00:06:45:17 - 00:06:47:18
maybe a
maybe a debt, maybe a business plan,
00:06:48:19 - 00:06:49:10
if you're if you're
00:06:49:10 - 00:06:53:08
starting, you know, a business
for the first time with some key sections,
00:06:53:08 - 00:06:56:21
such as, you know, what market came after,
what problem you listen to.
00:06:57:09 - 00:06:58:21
So what is the solution?
00:06:58:21 - 00:07:00:23
What is the here
the team who are the people
00:07:00:23 - 00:07:05:21
that you've decided to convince
to join you in the journey yourself?
00:07:05:21 - 00:07:08:21
It might be the co-founders
about how much you listen to
00:07:08:21 - 00:07:12:19
raise about, you know, what,
what kind of numbers you're targeting.
00:07:13:00 - 00:07:15:07
So you're looking to grow a big business.
00:07:15:07 - 00:07:17:13
Are you're looking to grow medium
sized business
00:07:17:13 - 00:07:20:08
or are you looking to grow a lifestyle
business?
00:07:20:08 - 00:07:24:01
The majority of companies in the UK
lifestyle businesses,
00:07:24:08 - 00:07:27:17
you know, think your local bar,
your your, your
00:07:28:23 - 00:07:30:23
your your your, your shop owner,
00:07:32:00 - 00:07:33:15
you know your
00:07:34:04 - 00:07:36:10
all these all these businesses generally
00:07:36:15 - 00:07:40:04
maybe family run or maybe the sole trader
was an entrepreneur.
00:07:40:09 - 00:07:42:20
So there's,
you know a certain type of business
00:07:43:04 - 00:07:47:05
that you might want to build you know
within these either a lifestyle medium
00:07:47:05 - 00:07:51:01
or a big unicorn type company
like a Facebook or whatever.
00:07:51:19 - 00:07:53:22
So you've got your documents in order.
00:07:54:05 - 00:07:57:10
You've figured out what kind of business
that you're looking to build
00:07:57:16 - 00:07:59:04
as a result of that.
00:07:59:04 - 00:07:59:21
And then
00:07:59:21 - 00:08:03:12
you might start looking at identifying
which investors might be relevant for you
00:08:03:17 - 00:08:06:20
and those different investors,
that investor, different stages.
00:08:07:05 - 00:08:08:10
If you're at the early stage,
00:08:08:10 - 00:08:11:21
you might look for some early stage
venture capital funds.
00:08:12:05 - 00:08:14:04
If you decide the business
you're looking to build
00:08:14:04 - 00:08:17:19
is one of the bigger businesses
rather than the medium sized businesses,
00:08:18:02 - 00:08:21:18
you might look to your network
and see if you know any within your family
00:08:21:18 - 00:08:24:10
and friends
whether anyone there is able to invest.
00:08:24:21 - 00:08:29:16
The UK offers very generous tax incentives
for early stage businesses.
00:08:30:14 - 00:08:34:05
You know, you get you get 30%
00:08:34:05 - 00:08:39:09
back as a UK taxpayer,
I'm telling me if you invest in companies
00:08:39:09 - 00:08:42:09
and then if they end up failing,
you get a further 30% back
00:08:43:00 - 00:08:47:00
and those percentages are even higher
for even earlier stage businesses.
00:08:47:11 - 00:08:51:07
And so, you know, it's it's it's
the people that understand the ecosystem.
00:08:51:18 - 00:08:53:18
If you're to raise money,
00:08:53:18 - 00:08:58:00
it should be relatively straightforward
compared actively to other countries
00:08:58:08 - 00:09:01:22
to find someone and to say, hey,
you can put in,
00:09:02:06 - 00:09:04:21
you know, cash in the business
and you get income,
00:09:05:03 - 00:09:09:04
you get cash back by the tax man,
which is a great win win.
00:09:09:05 - 00:09:11:11
You get money
and the person gets money back.
00:09:11:22 - 00:09:14:04
And so there's there's
a large industry to support you.
00:09:14:06 - 00:09:16:21
So you find,
you know, the different types, investors,
00:09:16:21 - 00:09:20:10
it might be these VCs,
it might be some of these tax funds,
00:09:20:10 - 00:09:23:10
it might be family, might be friends,
it might be angel investors,
00:09:23:21 - 00:09:28:09
and you might find them online generally,
there has been a movement in a shift
00:09:28:19 - 00:09:33:19
towards much more open
conversations, a much higher code outreach
00:09:36:21 - 00:09:39:02
metrics, i.e.
00:09:39:05 - 00:09:42:02
because of the lack of diversity currently
00:09:42:07 - 00:09:46:10
in the VC space across
both funds and angel investors.
00:09:46:10 - 00:09:48:15
For individuals invest in startups,
00:09:49:17 - 00:09:51:23
there's a there's been a trend towards
being more open
00:09:51:23 - 00:09:54:17
in taking code inbounds
and taking applications.
00:09:55:02 - 00:09:58:17
So if you if you find a VC that you like
and you go on the website,
00:09:59:09 - 00:10:02:12
maybe one out of three
will have an application
00:10:02:12 - 00:10:05:23
form for you to fill out, which means
you don't need to perform introduction.
00:10:06:05 - 00:10:09:17
And VCs are quite happy
now shouting about the great ground
00:10:09:17 - 00:10:13:02
they built in order
to generate these cold emails.
00:10:13:09 - 00:10:14:13
And so if you're starting off,
00:10:14:13 - 00:10:18:05
I wouldn't be too concerned,
especially for some of the Angel networks.
00:10:18:14 - 00:10:22:15
I'm very open with with outreach.
00:10:22:18 - 00:10:23:10
So you've got
00:10:23:10 - 00:10:27:05
you've got your materials, you figured out
what kind of company you want to build.
00:10:27:12 - 00:10:30:10
You identify investors,
you start reaching out to them
00:10:30:21 - 00:10:34:02
and you start having conversations,
you know, first, second, third meetings.
00:10:34:13 - 00:10:38:08
I think you've managed to persuade
some to invest in your business.
00:10:39:04 - 00:10:41:13
You might then want to hire a lawyer, or
00:10:41:13 - 00:10:45:02
if you a very early company, you might use
a platform like, say, legals,
00:10:45:11 - 00:10:49:13
which provide lots of functionality
for you to be able to close your rounds.
00:10:49:22 - 00:10:52:19
And you can choose the terms,
you can choose to touch that market,
00:10:53:02 - 00:10:56:09
and then you can pool these investors
to invest in your company
00:10:56:16 - 00:10:57:22
through that platform.
00:10:57:22 - 00:11:00:01
And that's kind of that's kind of it.
00:11:00:01 - 00:11:04:04
You can jump in the each different stage,
but ultimately you're trying to
00:11:04:07 - 00:11:09:23
you are effectively you a sales person
when you're fundraising, you will instead
00:11:09:23 - 00:11:14:16
of selling the product, you're simply
selling shares in your company.
00:11:15:05 - 00:11:17:23
And so the art of use, you know, selling,
00:11:17:23 - 00:11:20:06
being prepared, identifying
00:11:20:23 - 00:11:25:16
relevant potential buyers or investors
and then actually negotiating
00:11:25:16 - 00:11:29:09
to get them involved
is pretty much the the way
00:11:30:01 - 00:11:32:09
that the process works.
00:11:32:09 - 00:11:34:02
And how how would someone
00:11:35:01 - 00:11:35:16
go about
00:11:35:16 - 00:11:38:15
setting the valuation of their company
when they're out?
00:11:38:16 - 00:11:41:11
Is it is a supply and demand piece where,
00:11:42:00 - 00:11:45:21
you know, that valuation might change
depending on how much interest you've got?
00:11:46:05 - 00:11:49:03
Or is it based on the founder
00:11:49:03 - 00:11:52:05
and the experience of the people
and the team?
00:11:52:20 - 00:11:56:13
What factors would someone account for
00:11:56:13 - 00:11:59:16
when you're thinking about the valuation,
when you when you're what?
00:11:59:16 - 00:12:03:04
It's just that pre-seed
kind of idea type stage?
00:12:05:00 - 00:12:09:04
I think that the the idea stage
and the pre-seed stage,
00:12:09:04 - 00:12:13:13
if you're if you're considering valuation
is there's lots of complicated
00:12:14:16 - 00:12:16:22
and scientific ways of thinking about it.
00:12:16:22 - 00:12:19:04
But you know, as many people know,
00:12:19:04 - 00:12:21:04
valuation is more of an arts
than a science.
00:12:21:19 - 00:12:24:12
And often you can spend hours
00:12:24:19 - 00:12:27:10
diving into
lots of different methodologies.
00:12:28:06 - 00:12:30:18
But the most common
way of thinking about it
00:12:31:04 - 00:12:35:01
is, is simply that you often get diluted
00:12:35:06 - 00:12:40:11
between 10 to 20% per round,
and so you're offering 10 to 20% off
00:12:41:02 - 00:12:43:17
of the business and you're
00:12:43:17 - 00:12:47:10
therefore the range of valuation
is already
00:12:47:16 - 00:12:51:08
approximated by the equity
that you're willing to give.
00:12:51:16 - 00:12:55:02
And the other side of the equation
to get a valuation is of course
00:12:55:02 - 00:12:56:08
the raise amount,
00:12:56:08 - 00:13:00:19
and that is often a function of how much
money you need to get to the next stage.
00:13:01:09 - 00:13:04:21
So if you plan that, you know,
you need half a million, a million to
00:13:05:18 - 00:13:08:06
build the product
and to generate a bit of traction,
00:13:08:13 - 00:13:10:12
then you'll be raising
half the male 2 million.
00:13:10:12 - 00:13:12:20
If you're raising a million
and you're giving away,
00:13:13:02 - 00:13:18:09
you know, a fifth of business, then that
to evaluation, you know, the five six mark
00:13:19:09 - 00:13:21:18
broadly, if you're raising half a million,
00:13:21:18 - 00:13:25:01
same thing,
you setting your valuation in 2 to 3 mark.
00:13:25:13 - 00:13:29:09
And so the best way of thinking about
valuation is simply how much you're
00:13:29:09 - 00:13:34:04
looking to raise and your range
is how much you're expected to give.
00:13:34:16 - 00:13:36:23
And if you're an angel,
you'd invest slightly
00:13:37:17 - 00:13:39:20
less and receive slightly
00:13:40:04 - 00:13:44:07
less state and if you're a VC or venture
capital fund,
00:13:44:13 - 00:13:47:03
you might take, you know, 15, 20, 25%.
00:13:47:22 - 00:13:50:11
And and what is an angel for people
00:13:50:11 - 00:13:52:19
that are familiar with the terminology.
00:13:54:00 - 00:13:56:02
Shows an angel often is a
00:13:56:02 - 00:13:58:19
is an individual investor
00:13:58:19 - 00:14:01:19
who might want to
00:14:01:19 - 00:14:04:03
invest some of their salary
00:14:04:03 - 00:14:08:02
or savings into early stage companies
because they
00:14:08:02 - 00:14:12:05
they might see the return to
they might want to benefit from a big exit
00:14:13:08 - 00:14:15:12
and be one of the early investors
00:14:15:12 - 00:14:17:18
or B, they might
00:14:17:18 - 00:14:20:19
simply have exited
and built a business themselves.
00:14:20:19 - 00:14:24:05
And therefore they might want to invest
in companies they know and understand.
00:14:24:21 - 00:14:28:10
So within the fintech space,
you know, one of the most active
00:14:28:11 - 00:14:31:11
angel investors is Monzo, a taxi.
00:14:31:20 - 00:14:34:21
He's now invested,
I think, one of the largest
00:14:34:21 - 00:14:37:22
number of companies
in the last couple of years.
00:14:38:00 - 00:14:42:15
And, you know, he's built his career
at Monza and he's decided now to start
00:14:42:19 - 00:14:45:12
angel investing or invest his own money
00:14:45:18 - 00:14:48:20
into those companies.
00:14:49:09 - 00:14:51:11
And can you can you talk through again,
00:14:52:05 - 00:14:54:15
it sounds like terminology in fundraising
00:14:55:23 - 00:14:59:22
or when we say can a Pre-Seed seed series
A, series B,
00:14:59:22 - 00:15:03:18
seriously and so on,
What are all those things mean?
00:15:04:12 - 00:15:04:21
Sure.
00:15:04:21 - 00:15:07:22
And they all mean
different things to people.
00:15:08:15 - 00:15:11:01
And the quantum is constantly changing.
00:15:11:11 - 00:15:15:09
However,
the basics remains the same that pre-seed
00:15:15:17 - 00:15:21:19
all companies and founders
who are yet to develop a product
00:15:24:00 - 00:15:26:05
and they've got an idea
00:15:26:17 - 00:15:32:03
and they're yet to build the technology
or the product that Pre-Seed seed is.
00:15:32:03 - 00:15:36:10
Typically when you've got your product
or your or your app
00:15:36:10 - 00:15:41:08
or whatever you're building and you're yet
to properly commercialize it.
00:15:41:19 - 00:15:44:18
So you have generated
lots of traction. Yes.
00:15:44:18 - 00:15:46:06
On the on the product.
00:15:46:06 - 00:15:49:04
And then you series A is
when you've got the product,
00:15:49:14 - 00:15:52:04
you've got some form of fit
00:15:52:04 - 00:15:54:22
with the market because you're starting
to generate customers
00:15:55:15 - 00:16:00:07
and you're looking to raise in order to
to to do more of the same.
00:16:00:20 - 00:16:03:02
You know, you've got your product,
you've got the market
00:16:03:02 - 00:16:06:15
and you've got some customers and
you put money in and then money comes out.
00:16:07:01 - 00:16:11:23
And then as you grow the alphabet,
it starts being much more about metrics.
00:16:12:06 - 00:16:13:12
So series B, for example,
00:16:13:12 - 00:16:16:00
you've got the product, it grows,
you've got customers, you're doing well.
00:16:16:10 - 00:16:20:09
Can you now down these KPIs
to make sure that you're growing
00:16:20:09 - 00:16:23:17
in the most efficient way,
you know, with the best team around you?
00:16:24:05 - 00:16:26:18
And so it starts being about the metrics
00:16:26:18 - 00:16:30:05
than the actual business,
but that's generally the way that it goes.
00:16:30:05 - 00:16:31:06
You know, you're find
00:16:31:06 - 00:16:34:20
the products, you've got, the product,
you find customers, you've got customers,
00:16:35:00 - 00:16:37:12
and then you're really kind of
scaling of those customers.
00:16:38:11 - 00:16:39:10
So let's talk about
00:16:39:10 - 00:16:42:18
your journey because you've gone
through this yourself, right?
00:16:42:18 - 00:16:46:12
You've started up your own company
and you've had to,
00:16:47:20 - 00:16:51:13
I suppose, dogfood your own advice
you've been giving over, over
00:16:51:13 - 00:16:53:16
the money is how did you
00:16:55:16 - 00:16:57:19
what did you think about when you
00:16:57:19 - 00:17:00:19
when you had the idea that you wanted
to go out on your own and do this?
00:17:01:04 - 00:17:04:16
And how did you approach risk and return?
00:17:04:16 - 00:17:06:06
Because it's all about risk and return
when you're
00:17:06:06 - 00:17:08:03
when you're
looking at these type of things.
00:17:08:03 - 00:17:11:14
What was what was your thinking process
and did you have a long term goal
00:17:11:14 - 00:17:16:04
or did it
organically just fall into this and evolve
00:17:16:04 - 00:17:19:19
into into starting up your own venture
funding business?
00:17:20:21 - 00:17:23:06
And so in terms of the business,
00:17:23:06 - 00:17:26:05
if I was going to think back about the,
you know, the documents and the
00:17:26:13 - 00:17:29:11
and the business profile of the business
I was to build,
00:17:30:02 - 00:17:33:04
it's very much a medium sized business.
00:17:33:06 - 00:17:35:07
So it's not a lifestyle
business. We're looking to grow
00:17:36:15 - 00:17:39:10
to grow year by year
and we have done in the last three years.
00:17:39:18 - 00:17:42:21
It's not going to be a unicorn uber
type business
00:17:42:21 - 00:17:48:02
because it's very heavy on the people side
and it's practically impossible
00:17:48:02 - 00:17:53:00
to build a scalable business
with people rather than technology.
00:17:53:20 - 00:17:56:01
So it's a kind of in the middle bucket of
00:17:56:01 - 00:17:59:03
a, you know, medium size,
00:17:59:03 - 00:18:01:06
relatively good growth company.
00:18:01:18 - 00:18:05:21
And as a result, we decided therefore
not to take venture capital funding
00:18:05:21 - 00:18:09:05
because we didn't
we weren't going to appeal to the investor
00:18:09:13 - 00:18:13:18
to, you know, the looks to invest in us,
although we've had a lot of interest
00:18:13:19 - 00:18:17:06
and appetite from investors
following especially following
00:18:17:06 - 00:18:19:22
some of the acquisitions in the space,
we want to invest.
00:18:19:22 - 00:18:21:12
But we didn't really
we didn't need the money.
00:18:21:12 - 00:18:26:02
We didn't have any desire to be controlled
or have any concerns
00:18:26:23 - 00:18:29:10
from someone else at the moment.
00:18:29:10 - 00:18:30:18
And so that's what we decided.
00:18:30:18 - 00:18:32:06
We didn't need venture capital funding.
00:18:32:06 - 00:18:34:11
We might we might have needed
it, might use,
00:18:34:17 - 00:18:38:06
you know, loans as an example,
if we're looking to expand.
00:18:38:06 - 00:18:42:23
But generally we're looking to grow in a
in a much more sustainable way.
00:18:44:07 - 00:18:45:05
And that's the business we
00:18:45:05 - 00:18:49:14
decided to go and grow into in terms
of how we went about doing it.
00:18:50:12 - 00:18:54:15
You know, although we had I've you know,
some of my first business at university
00:18:54:15 - 00:18:57:22
and I've always wanted
to build something of my own.
00:18:59:11 - 00:19:02:08
The the way that happened
00:19:02:11 - 00:19:06:10
is kind of quite a natural occurrence
that was, you know, less thinking more
00:19:06:23 - 00:19:10:20
as long as you're proactive, curious
and get involved
00:19:10:20 - 00:19:13:17
in different things, opportunities
normally can come to you.
00:19:14:08 - 00:19:16:19
And that's why I find, you know,
that's what we advise
00:19:16:19 - 00:19:20:18
when when a company joins an accelerator,
you actually tons of accelerators.
00:19:20:18 - 00:19:22:05
The more you put it
in, the more you get out
00:19:22:05 - 00:19:25:05
And that's Germany
that what seems to have occurred
00:19:25:05 - 00:19:28:23
throughout my career scenario curious
to get involved as much as possible
00:19:29:08 - 00:19:31:22
and then opportunities come to you
so you know when I
00:19:32:12 - 00:19:35:21
when I joined the innovation team and
started some of these programs, that was,
00:19:35:23 - 00:19:39:12
I think probably as a result of meeting
some people at a probably a tech startup,
00:19:39:15 - 00:19:41:13
drinks of some kind following up,
00:19:41:13 - 00:19:44:07
going to more of those kind of events
because that's what I was interested in
00:19:44:13 - 00:19:48:09
and that morphed
into into forming that team.
00:19:49:04 - 00:19:50:19
And so I think the
00:19:50:19 - 00:19:55:04
the advice I'd give from a fundraising
perspective in a career journey
00:19:55:04 - 00:19:59:11
is the more curious
you are, the more you know of a yes person
00:19:59:11 - 00:20:05:01
you can be, the more likely you are to
then find the area of interest.
00:20:05:15 - 00:20:08:11
And and for me, leaving Peter say
00:20:09:23 - 00:20:10:22
after just under ten
00:20:10:22 - 00:20:14:21
years of being there
seemed like a weird thing to do because
00:20:14:21 - 00:20:17:13
at the time I think I could see myself
staying at the long term.
00:20:18:19 - 00:20:22:07
But it was a so it was a factor of
a number of different, you know, aspects.
00:20:22:07 - 00:20:25:03
We we built a successful business
within the firm.
00:20:25:03 - 00:20:28:20
We were getting much more pressure
from various different stakeholders to,
00:20:29:16 - 00:20:31:06
you know, he wanted to,
00:20:31:06 - 00:20:35:08
you know, get involved a lot more politics
in the bank in a big firm.
00:20:35:08 - 00:20:37:04
Everyone wants to own own.
00:20:37:04 - 00:20:41:00
You feel if you're successful
and the compliance was getting it
00:20:41:00 - 00:20:45:18
all was getting on to having to you know
sometimes it took a couple of months
00:20:45:18 - 00:20:49:08
to actually engage
and work with companies as opposed to,
00:20:49:17 - 00:20:53:05
you know, now the 24 hours
it takes us to work with someone,
00:20:53:05 - 00:20:57:02
we're still regulated, so we've still got
a lot of compliance and KYC to do,
00:20:57:08 - 00:21:00:05
but we can be
much more, much more quickly.
00:21:01:09 - 00:21:01:14
And then
00:21:01:14 - 00:21:03:21
regarding, you know, taking the leap
and leaving,
00:21:05:00 - 00:21:07:09
you know, a fairly well-paid,
00:21:07:09 - 00:21:10:04
fairly cushioned job,
00:21:11:12 - 00:21:16:00
and I'm not sure why, but how when I'm
00:21:17:04 - 00:21:19:04
not sure why we did it at that time
00:21:19:04 - 00:21:22:04
or how we went about, you know, doing it.
00:21:22:08 - 00:21:25:02
I guess the way I had
six months of savings.
00:21:25:19 - 00:21:27:18
Was this around COVID as all.
00:21:27:18 - 00:21:30:17
It was yet just before COVID?
00:21:30:17 - 00:21:33:20
I think we decided,
I think for five months before
00:21:33:20 - 00:21:37:06
Kevin and months
and two months before COVID
00:21:38:13 - 00:21:41:07
and we'd saved six months.
00:21:41:07 - 00:21:44:00
And so I guess we had six months
to make it a success.
00:21:44:16 - 00:21:47:08
And fortunately we did,
00:21:47:08 - 00:21:50:11
despite the world falling apart in March.
00:21:52:22 - 00:21:53:23
Indeed,
00:21:55:21 - 00:21:58:03
one thing that I learned
00:21:58:03 - 00:22:02:21
when we did the BWC
raise program was and I hadn't
00:22:03:21 - 00:22:06:10
pretty thought about it as much,
but if you could talk through
00:22:06:20 - 00:22:10:19
when you talk about VCs,
VCs have to go out and raise money.
00:22:11:00 - 00:22:11:12
All right.
00:22:11:12 - 00:22:16:16
And and and they're raising money from,
you know, high net worth individuals,
00:22:16:21 - 00:22:20:10
other companies, pension
funds, the government of the bank.
00:22:20:10 - 00:22:24:18
So can you talk through the
the make up of that because that wasn't
00:22:24:18 - 00:22:28:13
something I was
you know I fully appreciated until
00:22:28:17 - 00:22:32:17
I think you kind of lifted up the rock
and could see what was under there.
00:22:33:09 - 00:22:37:13
Yeah that's what was my
my favorite workshop actually to get lucky
00:22:39:00 - 00:22:43:20
it I guess, made an impact
in understanding how they think
00:22:44:02 - 00:22:48:21
because I think that's the most important
aspect of fundraising and selling.
00:22:49:01 - 00:22:50:21
I think if we
if we talk about selling in general
00:22:50:21 - 00:22:52:09
because,
you know, that's well, fundraising is
00:22:53:11 - 00:22:55:20
understanding the buyer
00:22:55:20 - 00:22:57:23
is probably one of the most important
00:23:00:00 - 00:23:02:14
things to to to to consider
00:23:02:19 - 00:23:05:02
when you're you're in the market
00:23:06:07 - 00:23:08:12
and you know a poor salesman is
00:23:08:12 - 00:23:11:13
or salesperson
is one who doesn't understand the buy in.
00:23:11:13 - 00:23:15:07
I think, you know, everyone can relate
to being sold something they don't need
00:23:16:01 - 00:23:18:00
or they don't want.
00:23:18:07 - 00:23:20:08
And the same is applied to fundraising.
00:23:20:10 - 00:23:24:16
If you can understand the type of investor
or lender you're speaking to,
00:23:25:19 - 00:23:28:06
how they operate,
it makes you in a much stronger
00:23:28:06 - 00:23:31:08
position to actually sell what they want.
00:23:31:18 - 00:23:34:05
And within the spectrum
of funding options,
00:23:34:13 - 00:23:38:06
there's a multitude number
of different types of investors.
00:23:38:14 - 00:23:41:08
You know, the tax efficient investors
I mentioned before, where they had
00:23:41:08 - 00:23:44:18
the tax break,
they didn't work at all like the VC funds
00:23:44:18 - 00:23:47:01
because they need much lower return
profiles.
00:23:47:11 - 00:23:48:12
The Angel investors
00:23:48:12 - 00:23:51:10
don't work at all like the VCs
because that is their own capital.
00:23:51:19 - 00:23:54:10
They're investing their own money
into these companies
00:23:54:16 - 00:23:57:02
and therefore the process,
you know what process?
00:23:57:07 - 00:24:01:08
There isn't a well defined
institutional rigor in their assessment.
00:24:01:09 - 00:24:03:08
You know, they might meet you,
they like you, you know,
00:24:03:08 - 00:24:06:14
here's the money with a bit of diligence
and a bit of legal homework.
00:24:07:13 - 00:24:10:04
But the VCs in the traditional sense,
which, you know,
00:24:10:04 - 00:24:15:06
is the kind of sexy industry in London
and what a lot of London is known for
00:24:16:02 - 00:24:20:06
is built upon a concept of managing
someone else's money.
00:24:20:19 - 00:24:23:13
And so VCs and although they appear,
00:24:23:23 - 00:24:24:19
you know,
00:24:26:13 - 00:24:29:06
scary or they might appear
00:24:30:12 - 00:24:32:08
like they've got over
00:24:32:08 - 00:24:34:15
all the power, they're just middlemen.
00:24:35:03 - 00:24:36:20
They have no power at all.
00:24:36:20 - 00:24:41:02
They're simply taking someone else's
capital and putting it to use.
00:24:41:21 - 00:24:44:22
And, you know, very different
to the family offices and very different.
00:24:44:22 - 00:24:46:10
So the corporates.
00:24:46:13 - 00:24:48:16
And so understanding that
00:24:48:23 - 00:24:51:00
the person that you're pitching to
00:24:51:18 - 00:24:53:23
isn't that to invest their own money,
00:24:55:00 - 00:24:58:07
they're there to invest someone else's
money leads you down this kind of avenue
00:24:58:07 - 00:25:02:16
of realizing why you need to produce
this set of documents, realizing
00:25:02:16 - 00:25:05:20
why you need to produce a five year model,
realizing why you need a business plan.
00:25:06:05 - 00:25:07:19
It's not because they need one.
00:25:07:19 - 00:25:09:03
It's because they need to come back.
00:25:09:03 - 00:25:11:17
If you end up failing because they need to
say, Oh, you know, I met Matthew.
00:25:11:17 - 00:25:14:07
He was a great business
and hey, all the things he told me
00:25:14:07 - 00:25:16:23
and therefore I don't want to lose my job
because I did all the right things
00:25:16:23 - 00:25:21:12
and I diligence and you know, it's
called the duty to your investors
00:25:21:12 - 00:25:24:22
or your limited partners
who are the name given to these investors.
00:25:25:04 - 00:25:27:12
And that's how the industry operates.
00:25:27:23 - 00:25:30:13
And so once you understand
that, you understand that
00:25:31:13 - 00:25:33:17
you empathize more with someone asking you
00:25:33:21 - 00:25:37:03
for these documents instead of saying,
oh, why do I need to give all this stuff?
00:25:37:03 - 00:25:38:11
Why is only to waste my time?
00:25:38:11 - 00:25:41:00
You start thinking, okay, okay,
they're simply there
00:25:41:06 - 00:25:44:05
to persuade someone else
to make the decision.
00:25:44:23 - 00:25:46:11
And it seems you have that mentality.
00:25:46:11 - 00:25:48:20
You start realizing
that your job as an entrepreneur
00:25:49:02 - 00:25:51:08
is to make their lives
as easy as possible.
00:25:51:08 - 00:25:54:22
And that's why documentation, preparation,
all these things are vitally important
00:25:55:06 - 00:25:58:07
because it's not about you selling them,
it's about them
00:25:58:07 - 00:26:01:11
selling you internally
and the conversations carries on.
00:26:01:14 - 00:26:03:18
So that's one large, you know,
00:26:04:19 - 00:26:10:04
aspect that is fundamental to
the fundraising process is understanding
00:26:10:04 - 00:26:13:06
who you're dealing with and understanding
that you're not dealing
00:26:13:06 - 00:26:15:17
with an individual,
you're dealing with an organization.
00:26:16:04 - 00:26:19:02
The second angle, which I mentioned
you also referring
00:26:19:02 - 00:26:22:14
to, is the understanding that they are
also in the same position, i.e.
00:26:22:14 - 00:26:25:13
they are also fundraising from,
you know, its partners.
00:26:25:23 - 00:26:28:17
And and what we like to tell founders
00:26:28:17 - 00:26:32:12
is how fortunate
they are compared to their funds, because,
00:26:32:19 - 00:26:35:19
you know, a typical startup
fundraise might be 3 to 9 months,
00:26:36:15 - 00:26:38:18
a typical VC fundraise
would be 2 to 3 years.
00:26:39:21 - 00:26:41:08
And not only that,
00:26:41:08 - 00:26:44:23
the population of investors
as you go up the food chain shrinks.
00:26:45:04 - 00:26:46:19
So you can imagine like a pyramid,
00:26:46:19 - 00:26:50:17
the very bottom, the entrepreneurs,
you can access everyone above you,
00:26:51:07 - 00:26:55:01
you can access the government, the funds,
the public offices, the corporates,
00:26:55:09 - 00:26:59:12
all these individuals
that are there to support the ecosystem.
00:26:59:20 - 00:27:02:15
And these go up and up and up.
00:27:02:15 - 00:27:05:14
You have fewer and fewer options
to raise from it.
00:27:05:14 - 00:27:08:11
So if your population
is the founders 100%,
00:27:08:21 - 00:27:10:23
your population is A, B, C is maybe 10%.
00:27:11:15 - 00:27:12:20
And why is it something more?
00:27:12:20 - 00:27:17:11
It's because,
you know, VCs are there to be built
00:27:17:11 - 00:27:21:16
to invest in entrepreneurs, whereas,
you know, family offices and,
00:27:21:23 - 00:27:25:09
you know, if you were investing in a
it funds your own personal wealth.
00:27:26:00 - 00:27:29:21
You are built to invest in funds,
you are built to invest in,
00:27:30:09 - 00:27:33:01
you know, anything you, you know,
you are there to probably build
00:27:33:01 - 00:27:35:06
a business and,
you know, to do your day job.
00:27:36:01 - 00:27:40:02
And so VCs are pitching
to a much smaller pool of individuals.
00:27:40:09 - 00:27:44:20
And so as a result, they've got the exact
same fundraising process that you do.
00:27:46:05 - 00:27:46:22
And how
00:27:46:22 - 00:27:51:00
does the lifecycle of a fund work?
00:27:51:00 - 00:27:52:05
Because you said it might take two
00:27:52:05 - 00:27:56:15
or three years to to raise money
to be anything from a few million
00:27:56:15 - 00:28:00:12
pound for a very small
fund up to billions for for for big funds.
00:28:00:23 - 00:28:06:02
How how how does the the world of X
00:28:06:02 - 00:28:10:13
then judged on by their investors
for that fund.
00:28:10:16 - 00:28:13:21
You know does they have a cut off time
you hear this term you know
00:28:13:22 - 00:28:17:10
kind of dry powder
and yeah lots of money to deploy.
00:28:19:01 - 00:28:20:13
Can you talk through that?
00:28:20:13 - 00:28:23:17
Yeah, I mean the the VCs,
much like the entrepreneurs,
00:28:24:02 - 00:28:28:14
have the exact same issue to deal with,
except the population of investors
00:28:28:14 - 00:28:29:07
is smaller.
00:28:29:07 - 00:28:32:22
And so everything we talk about,
the preparation, the profile,
00:28:33:05 - 00:28:36:07
understanding how they think, you know,
how some office thinks is very different,
00:28:36:07 - 00:28:38:13
how it government
thinks government is taxpayer money.
00:28:39:04 - 00:28:45:02
The biggest
the biggest owner of startups in Europe
00:28:45:02 - 00:28:50:01
are US taxpayer because we pay taxes.
00:28:50:01 - 00:28:53:16
But, you know, if you even if you don't
have a business, you pay VAT of whatever.
00:28:54:16 - 00:28:55:17
In Europe,
00:28:55:17 - 00:28:59:21
you pay taxes, government
takes it, taxes it, and spends on things.
00:28:59:21 - 00:29:02:11
Some of those things include funds
00:29:03:12 - 00:29:06:09
into a pot of money,
that pot money goes into phones
00:29:06:09 - 00:29:08:11
and that those funds go into startups.
00:29:08:11 - 00:29:11:10
And so if I'm pitching the government,
I'm pitching a very different proposition
00:29:11:16 - 00:29:13:16
as if I'm pitching into an individual.
00:29:13:16 - 00:29:17:00
And so the exact same process
applies is just the difficulty
00:29:17:00 - 00:29:20:00
is 3 to 5 times as hot.
00:29:21:20 - 00:29:25:11
And in terms of the lifecycle, you know,
they have a divestment,
00:29:25:12 - 00:29:28:13
an investment period of three years,
they race for couple of years,
00:29:28:13 - 00:29:30:07
they invest over two, three years
00:29:30:07 - 00:29:33:12
that they look at look to divest
and look to manage their portfolio
00:29:33:22 - 00:29:37:05
through, you know, helping access
maybe IPO, maybe trade sales.
00:29:37:16 - 00:29:40:05
And so the the when you speak to them
within
00:29:40:05 - 00:29:42:15
that process is critically important
because if you're speaking to them
00:29:42:15 - 00:29:46:06
at the end of the deployment process,
you won't be one in a thousand companies
00:29:46:06 - 00:29:48:17
they invest in
as opposed to one in 100 companies.
00:29:49:06 - 00:29:52:18
And so later on in the process,
you're speaking to, the more difficult
00:29:53:00 - 00:29:54:12
it is to actually receive funding.
00:29:54:12 - 00:29:58:09
And then you've got the added complexity
of multiple funds within the same
00:29:59:00 - 00:30:01:19
within the same entity
across different years.
00:30:01:19 - 00:30:04:06
And in terms of,
you know, process to raise the next one,
00:30:05:00 - 00:30:09:20
the first fund is easy or easy ish
in the sense that everything's relative.
00:30:09:20 - 00:30:14:18
You know, it's pretty hard work to race,
but it's easier than the next few.
00:30:14:18 - 00:30:16:22
So the first one is relatively easy.
00:30:17:05 - 00:30:18:20
The second one is relatively easy.
00:30:18:20 - 00:30:21:01
She got the relationships
already from the first.
00:30:21:01 - 00:30:25:13
The third one is practically impossible
because by the time that you're raising
00:30:25:14 - 00:30:30:04
a third one, seven or eight years
in, if you haven't had any big exits,
00:30:30:20 - 00:30:32:23
then there's nothing for you to hide
behind.
00:30:32:23 - 00:30:35:07
Whereas in the first one you can say
we are going to be great.
00:30:35:22 - 00:30:38:03
And the second one you can say,
we have been great
00:30:38:08 - 00:30:41:05
because you can see
all these high valuations.
00:30:41:11 - 00:30:44:01
The third one,
you have to you have to actually show
00:30:45:01 - 00:30:48:07
cash returns, which are difficult to find.
00:30:48:16 - 00:30:49:04
Yeah.
00:30:50:06 - 00:30:52:23
So, so this is a work in fintech podcast.
00:30:52:23 - 00:30:55:04
So can we touch briefly on fintech?
00:30:55:13 - 00:30:59:08
You know, the UK is a global
leader, has been for a long time, but
00:30:59:08 - 00:31:02:08
I think the crown is beginning to slip,
if not a slip already.
00:31:02:18 - 00:31:07:01
And can you talk about
why fintech is so established in the UK
00:31:07:10 - 00:31:10:06
and the you know, we've seen
00:31:10:06 - 00:31:14:04
some big funding rounds for fintechs
in the UK, you know, all the way
00:31:14:04 - 00:31:17:02
up to the top where you have launched
your revolution and your Monzo is
00:31:17:20 - 00:31:18:21
can you talk through the
00:31:18:21 - 00:31:22:17
kind of the ecosystem and the environment
and what funding looks like
00:31:22:17 - 00:31:26:13
and the kind of magnitude and quantum
of what we're seeing here in the UK?
00:31:28:13 - 00:31:30:16
Yes, I think about it.
00:31:30:20 - 00:31:34:12
Why why is why
we are such a good fintech nation,
00:31:34:12 - 00:31:40:04
Probably because, oh, London is,
I think, you know, a lot of the world,
00:31:40:04 - 00:31:44:00
but London particular is strong
in professional services, i.e.
00:31:44:00 - 00:31:47:00
people and people on people
rather than just tech.
00:31:47:18 - 00:31:50:11
And as a result
of the professional service industry,
00:31:50:21 - 00:31:53:13
you know,
that goes towards where the money is
00:31:53:13 - 00:31:56:20
and the money Germany is within
financial services and so you end up with
00:31:56:20 - 00:32:00:08
a strong professional services
within the financial services industry
00:32:00:20 - 00:32:04:04
that there needs to,
you know, breed of new entrepreneurs
00:32:04:04 - 00:32:09:12
who are leaving the big banks
and building better startups with that
00:32:09:13 - 00:32:12:03
better technology, knowing
all the problems of the pain points.
00:32:12:12 - 00:32:17:03
Let's see how big industry with lots
of issues that you know still you know
00:32:19:06 - 00:32:22:03
great
relatively you then have all these people
00:32:22:14 - 00:32:25:11
coming out of those organizations
wanting to make things better.
00:32:25:14 - 00:32:27:23
And that's how a lot of the challenger
banks were born.
00:32:27:23 - 00:32:31:19
And then within that section, you
then have all these various different
00:32:32:06 - 00:32:34:20
spin out when the between
00:32:34:20 - 00:32:37:22
the successful companies exit
or when people leave.
00:32:38:06 - 00:32:40:23
And so you have this this this fantastic
00:32:42:14 - 00:32:46:16
increase of talent
from some as organizations grow
00:32:46:16 - 00:32:50:14
and as organizations exert, much like
you have in America with the likes
00:32:50:14 - 00:32:53:20
of some of the early Microsoft
and Amazon and,
00:32:54:15 - 00:32:57:18
you know, various different mafias
00:32:57:18 - 00:33:00:20
and the US has a lot of mafia,
the UK mafia,
00:33:02:02 - 00:33:04:04
which I think there's
00:33:04:04 - 00:33:08:03
some chance in the US that if you look at
I think a couple of companies
00:33:08:08 - 00:33:12:00
and you draw these diagrams
of what people have gone through,
00:33:12:02 - 00:33:13:19
you know, two or three companies represent
00:33:15:00 - 00:33:15:10
over a
00:33:15:10 - 00:33:19:07
third of some of the unicorns
in terms of ex-employees or what have you.
00:33:19:09 - 00:33:23:22
And that's what kind of happens
with the FSA sector in London.
00:33:24:02 - 00:33:24:21
So that's one of the reasons.
00:33:24:21 - 00:33:27:12
I think the second reason
is the regulatory burden.
00:33:27:23 - 00:33:31:19
That is, you know, the regulators
are some of the best in Europe
00:33:31:19 - 00:33:35:03
and therefore UK
seem to be setting the bar
00:33:35:22 - 00:33:38:01
and that applies across
lots of industries.
00:33:39:23 - 00:33:42:12
And then, you know, the reason
why it might be different
00:33:42:12 - 00:33:45:00
now is because of Brexit
and passporting issues.
00:33:45:00 - 00:33:46:23
And so
00:33:47:01 - 00:33:50:13
these all these other issues
that might have
00:33:50:15 - 00:33:55:12
may made it less likely for it
to continue its longstanding lead.
00:33:55:20 - 00:33:59:23
But I suspect you know, that it's
not going to close overnight and London
00:33:59:23 - 00:34:04:19
is going to continue being a world leader
within within that within that space.
00:34:05:13 - 00:34:07:22
In terms of,
you know, numbers and deal volume,
00:34:07:22 - 00:34:11:09
it certainly represents the largest sector
in the last decade.
00:34:12:02 - 00:34:14:11
In the last couple of years,
there's been a lot of fads.
00:34:14:11 - 00:34:18:06
The Web 3.8 fads, the crypto fast
alcohol fads and now the
00:34:18:15 - 00:34:22:20
the open eye fads
and all of these sectors are popping up.
00:34:23:02 - 00:34:24:23
post-COVID,
of course, you had health care,
00:34:24:23 - 00:34:27:15
so you've got these very sectors,
you know, coming on.
00:34:27:15 - 00:34:31:08
But over the last decade, fintechs
definitely been the the most significant
00:34:31:16 - 00:34:33:07
investment area for
00:34:34:17 - 00:34:35:23
for companies.
00:34:36:03 - 00:34:39:14
And if you're building a fintech,
you know, the number of fintech within,
00:34:39:14 - 00:34:42:07
you know, B2B investors
is probably the biggest pool
00:34:43:18 - 00:34:45:00
any given time.
00:34:45:00 - 00:34:48:02
And so your
your certainly have a large population
00:34:48:02 - 00:34:51:12
of hungry investors.
00:34:52:03 - 00:34:54:12
So so to wrap up
00:34:54:15 - 00:34:56:10
in terms of people who are kind
00:34:56:10 - 00:34:59:08
of listening to listening to this
and might be thinking of,
00:34:59:21 - 00:35:02:21
you know, having an idea for a business
and give explains
00:35:03:18 - 00:35:06:22
kind of in detail some of the steps
and the processes and so on
00:35:07:17 - 00:35:10:17
in terms of some of the skills that people
00:35:10:17 - 00:35:14:04
kind of soft skills that people
can can work on in the meantime.
00:35:14:13 - 00:35:20:14
Are you spoken about when you were working
on the data side, an audit?
00:35:20:15 - 00:35:24:00
I can see when you very first started in
you appreciated that
00:35:24:08 - 00:35:29:06
actually audit is
is is going to get automated so having the
00:35:30:05 - 00:35:32:22
having the thought
process and the foresight to kind of think
00:35:33:02 - 00:35:35:16
further forward and how it's
going to impact what you're doing today.
00:35:36:01 - 00:35:40:15
And then you spoke about how curiosity
is super important
00:35:40:23 - 00:35:46:05
and passion and curiosity
and for learning and increasing a surface
00:35:46:05 - 00:35:50:05
area of your network,
the people that you meet, the idea
00:35:50:05 - 00:35:53:14
is that you have
the things that you read is all going to,
00:35:54:00 - 00:35:57:09
you know, incrementally
build up your knowledge and your network
00:35:57:09 - 00:36:01:04
and the people that you know,
Is there any other not a good words
00:36:01:04 - 00:36:05:17
of advice to young people in general
who are just starting a career
00:36:06:01 - 00:36:09:04
and and things related to kind of funding
00:36:09:04 - 00:36:11:00
and business ideas?
00:36:13:11 - 00:36:15:07
I think, you know, not having a ground
00:36:15:07 - 00:36:19:01
plan is certainly a good one
because the world moves so quickly.
00:36:19:14 - 00:36:22:19
But then having a well-trodden path is
00:36:25:02 - 00:36:27:16
an unlikely optimal strategy.
00:36:27:16 - 00:36:31:04
I think being open, embracing
what's around you and constantly learning
00:36:31:04 - 00:36:34:22
and evolving
is a much better path to take.
00:36:35:17 - 00:36:38:19
I think you can curiosity and drive can
00:36:39:20 - 00:36:42:00
provide sufficient
00:36:43:12 - 00:36:44:18
risk minimization
00:36:44:18 - 00:36:48:00
to make your,
you know, your career successful.
00:36:48:19 - 00:36:52:19
I'm in the very fortunate position
that I and you work for a living.
00:36:52:20 - 00:36:55:07
I just, you know, I do find joy.
00:36:56:04 - 00:36:57:22
And so I'm happy to,
00:36:57:22 - 00:37:01:19
you know, when we speak to clients, happy
to speak to them any time of day,
00:37:01:19 - 00:37:05:06
bid know evenings, weekends,
because for me, it's not work.
00:37:05:06 - 00:37:08:19
It's just a just a know, fun pastime.
00:37:09:04 - 00:37:11:13
And if you can be
in that privileged position,
00:37:12:02 - 00:37:16:14
that explains, I think, the reason why
a lot of the most successful
00:37:16:14 - 00:37:19:19
entrepreneurs are successful
because they can,
00:37:20:16 - 00:37:25:04
you know, work around the clock
because they do this work.
00:37:26:00 - 00:37:28:10
You know, that's how
00:37:29:08 - 00:37:34:11
and I think that's
why a lot of the in lot of companies
00:37:34:14 - 00:37:39:03
and a lot of people find it difficult
to, you know, split work life balance.
00:37:39:12 - 00:37:42:12
That's ultimately
because they're not enjoying the work bit
00:37:44:06 - 00:37:45:12
and it's not for everyone.
00:37:45:12 - 00:37:46:12
But if you're going to be building
00:37:46:12 - 00:37:48:18
a company,
it takes a lot of time and effort.
00:37:48:18 - 00:37:52:18
And so, you know, if I was thinking about,
well, single piece of advice,
00:37:52:19 - 00:37:57:02
it would be do something
that you enjoy doing.
00:37:58:01 - 00:38:02:00
And especially when you're young,
try and experience
00:38:02:00 - 00:38:06:17
lots of different things for you
to figure out what it is you enjoy doing.
00:38:07:15 - 00:38:08:18
And that's why I did it.
00:38:08:18 - 00:38:11:08
Peter
I worked at least five different teams
00:38:12:07 - 00:38:16:12
and specifically
since I started within the first year,
00:38:17:08 - 00:38:22:06
the first thing I did was make friends
with all the resource allocation staff
00:38:22:12 - 00:38:26:08
so that I could be
on as many different things as possible
00:38:26:18 - 00:38:30:07
rather than simply, you know,
a lot of my friends ended up working
00:38:30:07 - 00:38:34:05
with on one company for three years
and I couldn't think of anything worse
00:38:34:19 - 00:38:38:16
than joining a company
which provides you experience
00:38:38:16 - 00:38:41:09
working with different companies,
with only doing one thing.
00:38:41:21 - 00:38:45:12
And so you know the following
your follow your passion,
00:38:46:13 - 00:38:48:22
following where you want to work.
00:38:48:22 - 00:38:53:12
That can only happen
if you allow yourself to be involved
00:38:53:16 - 00:38:56:12
and experience different
00:38:56:12 - 00:38:59:18
work streams, because otherwise, you know
you don't know what you enjoy
00:39:00:01 - 00:39:03:11
and then regarding the future,
I think it's clear where things are.
00:39:03:13 - 00:39:04:18
You know, things are going.
00:39:04:18 - 00:39:08:19
Technology is going to be ever
increasing and say,
00:39:08:19 - 00:39:12:11
if you were going to think about AM
in a way
00:39:12:11 - 00:39:15:04
of a sector of something that is
00:39:16:05 - 00:39:18:23
that you're interested
in, if it uses technology
00:39:19:17 - 00:39:23:16
and, there's
an aspect of relationship in that,
00:39:24:02 - 00:39:26:17
then it's likely that you know,
you're going to succeed
00:39:27:07 - 00:39:30:00
because relationships, human
to human relationships
00:39:30:05 - 00:39:33:18
aren't going anywhere
and technology isn't going to go anywhere.
00:39:33:18 - 00:39:37:07
So if you can combine the two,
you know, you you are ready for success.
00:39:38:13 - 00:39:41:01
So, Jonathan,
how can people get in contact with you
00:39:41:01 - 00:39:44:00
or learn about some of the resources
that you've mentioned?
00:39:44:22 - 00:39:45:05
Sure.
00:39:45:05 - 00:39:49:04
So, you know, I was always happy
to respond to any any emails.
00:39:49:19 - 00:39:52:18
And, you know, it's not a automated email
00:39:54:19 - 00:39:56:08
I'm on John for that matter.
00:39:56:08 - 00:39:57:02
Ventures dot com.
00:39:57:02 - 00:40:00:18
You can drop me a note
or you can look at our website and
00:40:01:09 - 00:40:04:01
you know, I mentioned at the start
that our mission
00:40:04:01 - 00:40:08:13
was to optimize the fundraising process
for founders and for funds.
00:40:08:18 - 00:40:12:21
And unfortunately, given that, you know,
we're still a people based business,
00:40:13:08 - 00:40:14:11
we can't work with everyone.
00:40:14:11 - 00:40:17:11
We only work with a very small number
of companies we speak to every month.
00:40:18:02 - 00:40:22:01
So in order to cater for that,
we publish a lot of information
00:40:22:01 - 00:40:23:23
on our websites in order to give others
00:40:23:23 - 00:40:27:17
the tools and the know how
and the best of lists to do it themselves.
00:40:28:00 - 00:40:30:23
So even though we might not
support them formally, hopefully
00:40:30:23 - 00:40:34:02
they're going to be in a better position
to actually access those tools.
00:40:34:02 - 00:40:38:18
And so you can find pitch deck templates,
you can find our latest term XI report,
00:40:39:02 - 00:40:42:12
which analyzed terms
from 200 different funds.
00:40:42:15 - 00:40:44:12
We publish them,
analyze them, summarize them.
00:40:44:12 - 00:40:47:08
So if you raising
and you look at our terms, you can go, oh,
00:40:47:13 - 00:40:50:09
actually, you know, this time,
as the market increased in value
00:40:50:10 - 00:40:54:15
or is actually this time isn't market
this time is can I negotiate
00:40:55:06 - 00:40:58:22
based on what I've seen so you can find
all those resources on our website?
00:41:00:05 - 00:41:00:19
Fantastic.
00:41:00:19 - 00:41:03:03
Jonathan,
thank you for your time. Pleasure.