Transcript
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When we look into the data, we see that a
company raising a seed run-in Europe has
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actually the same probability of reaching a
unicorn status as a company in the US.
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So for us, this is actually a crucial point
because it highlights the potential for high
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returns in Europe.
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Additionally, you know, there's less capital in
Europe, for sure, which means there's a little
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bit less competition as a result of this
devaluations a little bit lower.
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We see funds are also companies, right, and GPs
needs to understand that.
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And this is very because I think many of the VC
fund managers out there don't really realize
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that they are building a company here so that
team dynamics are as crucial and important as
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it is in startups or in other companies.
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And that building a VC fund as a GP is not the
fastest way to become and many of them are
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approaching this asset just by the idea of the
coming rich fast, which is totally in most of
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the cases, not true.
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It's a long path of nose, a long path of
setbacks, and a long path of not eating and
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sleeping until you even know if you're an
outlier or not.
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Right?
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Yoke and Marius, I've
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been excited to chat ever since our friend,
Jordan L, made the introduction.
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Welcome to the Townex Capital podcast.
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For having me.
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Thank you, David.
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Thank you for having us.
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Marius, you founded AQVC.
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Tell me about how you went about founding AQVC.
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I'm one of the founding partners, suspension,
but I offer complimentary capital and I started
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my career with studying law.
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Left this environment quite early after even 1
year, I built up 1 of the first German company
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builders or co founders and another brand RANG
Out founders.
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So we co founder roughly 20 companies over a
period of 7 years.
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And parallel to that, we started our first CC
file in 20 13.
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We invested also roughly in around 100 startups
notes the early stage.
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In 2021, then I partnered up with Metro based
partners in 200 a QVC.
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And so we started with a fund of VC funds after
having screened more than 3a half 1000 VC
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funds.
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We thought that there is this functionality in
capital formation between GPs and LPs.
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There's so many fund of funds out there.
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Do we really need another fund of fund?
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Why start AQVC?
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Yes.
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I think so.
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And, to be honest, when we started AQVC 3 years
ago, were not that many fund of funds, to be
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honest, at least not fund of funds that
reengineered their structure in a bit.
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So our mission and vision worsen is still today
to democratize venture capital as an asset
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class.
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Right?
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So therefore, we looked at the products the
market was offering in these days back then,
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and we thought of building a product that is or
making the access easier in networking
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individuals and family offices.
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And, Yoko, you joined AQVC.
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Tell me about when you joined and what's your
role in the company?
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My background is doing pretty much fund
investments for different organization, family
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offices, you know, about management firm and
also try to raise my own VC fund.
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I joined AQVC and supporting on different
things.
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Right?
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Currently, we're building an LP community as
well.
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You know, also speaking, we've done that with a
lot of other LPs as well.
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Under family offices and fund of funds to share
notes, research, deal flow, and just in
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general, just build that ecosystem on wearing
quite a lot of different hats as of now.
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Marius, it's Q3 2024.
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What are you looking for funds today?
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Yeah.
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It's a good question.
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And first, it's important to know, David, that
we invest into both emerging and established
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the sequence in the kind of bubble strategy.
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So when we evaluate a VC call, we take a lot of
aspects, obviously, into account, and we can
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split them basically into 2 buckets, which is
quantitative and qualitative aspects.
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Right?
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So starting with quantitative, maybe, of
course, we have to start with benchmarking the
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historical performance of either the fund
manager itself went or the acting GPs
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themselves.
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So as a cycle from inception, over several
closings to the
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final closing, it can take 12 to 24 months.
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I think typically, so this is important to take
into account to
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be able to compare apples to apples.
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And therefore, it's important to understand how
to correctly benchmark.
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So before comparing, receive funds to each
other, you need to verify our benchmark exactly
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sees the vintage, post loadings, start up
investing, finally closing their different
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approaches.
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For sure.
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The most common one is Cambridge, associates
CA, and they use for the vintage year, the
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inception date of a receive.
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And so once you have found the correct
benchmark vintage, it's about comparing key
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metrics that matter.
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Right?
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And we'll spare you details now around the KPI
exposes but combined these metrics give a good
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indication inside of a fund's performance and
other qualitative aspects you will want to look
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at our loss ratio, fund model, portfolio
construction, holding percentages, and the way
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the fund sticks to it over time and so on.
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And on the qualitative side, We do a lot of
reference calls with portfolio CEOs with LPs
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with co investors.
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We evaluate team dynamics.
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We had a very close look at the investment
decision process.
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We check everything around secret sauce when it
comes to oversubscribed deals, we look at the
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network, which is important for buying,
selling, fundraising, and so on.
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Many more things, I think, in total, plus 3
digits of checking points.
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And this is obviously very dynamic.
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Right?
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So once you are looking at the emerging manager
side, the qualitative aspects are more
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important in the relevant and the quantitative
ones.
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And once the fund is more established, you have
more numbers and more advertisers to do at the
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very early stages, just a natural person
investing into a natural person.
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Right?
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So in the emerging segment of its funds, it's
not necessary to find big brands or names, and
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you need to find managers who are going a
different way and are willing to go for long,
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long feedback loop managers.
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We look at need to understand that the hard
walk of life before becoming an outlier.
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Our edge to getting to top managers maybe is we
are offering unique at P value.
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So we are 3 partners now, operative partners,
and on top of a team of very, very experienced
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founders, elocators, former GPs, and we walked
away from founder to content bigger to GP to
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educate with no wire outside of funding.
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Of course, it helps when stepping in early on a
GP's life cycle.
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We've seen this year first time funds are
getting 90% less allocation than last year,
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which was down from the year before.
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What gets you to write a check into a first
time fund today?
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Q3 2024?
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We have the mandate, right, and the question is
basically why we invest into both emerging and
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established managers.
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So Established managers obviously can provide a
baseline solid performance.
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Right?
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So 48% I think is the statistic of the top
quartile funds maintain top quartile status and
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direct subsequent funds.
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So this is great, but choosing carefully,
emerging managers can outperform, right, And
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even though the amount of funding they get in
these years, 70% of the top decile funds
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globally are emerging or and developing funds.
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So to ensure the best sector coverage, we split
between those both and have this mandate also
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to take emerging managers by the hand and walk
them also through the journey of becoming an
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institution investor one day.
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Okay.
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Tell me about
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AQ discovery.
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What is AQ discovery?
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AQVC discovery is a software for GPs and LPs
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in the BC in the
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industry.
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So through the platform, we're offering tech
and services across the entire VC fund value
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chain of capital formation.
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Right?
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So the idea of AQVC discovery was actually born
from our own needs.
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So we, as a fund of fund, have a massive
inbound deal flow A lot of that deal flow is
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emerging managers.
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I mean, which we like because we actively back
emerging funds, but, you know, we quickly
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noticed that a lot of these managers who apply
for our capital are presenting themselves very
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differently.
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Everyone shows their numbers and KPIs in
different ways.
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So there's really no standards or structures in
place in our industry, which makes it quite
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inefficient and difficult for LPs also to
review funds.
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So based out of our learnings as a VC fund and
based on feedback from other active allocators,
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we built a solution for both PCs and LPs where
VCs can actually present themselves in the best
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way possible to their potential LPs, manage
those relationships, and also we support them
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with LP lead generation.
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So if you think about it, you know, so through
our platform and services, we function kind of
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as an extension of their team.
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Also, fundraising market has obviously been
quite challenging, you know, the last few
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years.
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At the same time, a lot of managers don't
necessarily have the resources or experiencing
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fundraising or broad LP networks to tap into
this is where a QVC discovery comes in to fill
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those gaps.
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And at the same time, you know, the platform
allows LPs like ourselves to screen and
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diligence fund managers much more efficiently.
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And that's what it's all about to enhance the
capital formation process in the venture
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capital industry.
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You mentioned presenting information to LPs is
an issue.
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As an LP, what do you like to see in a data
room?
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What is the minimum viable data room that you
like to see from an emerging manager?
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You need to compare one GP to another before
investing into a certain sector and to a
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certain geo an example, we decided to have or
want to have an impact fund in our very back
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then early portfolio.
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Right?
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And therefore, we were able as, this is our
full time job.
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Right?
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We were able to stream and plus 200 impact
funds that we decided we invested to one of
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them.
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And this is kind of the essence.
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We screened more than 3000 VC funds over the
last 2 years, and we came up with an essence of
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our portfolio of 19.
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So it's all about data normalization and
standardization.
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Right?
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This is very important.
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And This also is the crooks why not more people
at least from the private wealth side, have the
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capacity or skill set to invest more money into
our adventure capital because GPA sends you a
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deck with KPIs on slide 9, and GPB sends you a
deck with KPIs on slide 12.
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And as, already also mentioned, there's a lot
of KPIs to compare.
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So some of them, a report in IRR grows, some in
DPI net.
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So you need at least the full time analysts to
do the math behind it and be able to to compare
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one we see to another.
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Or we learned that this is one of the bigger
problems and makes capital formation very
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dysfunctional or very ineffective within or
between GPs and LPs.
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And this is also one of the reasons why we
created a QVC discovery and structured a varied
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data standardized and normalized profile, which
we, as a heavy allocator, which means investing
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to 5 to 10 or more receive funds per year, want
to see.
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So there are I think it's in the in the
meanwhile on the profile plus 400 data points,
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you might or able to fill in SMBC Fund.
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So the depth of information is or can be very
deep.
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And if you want to have a high data density to,
you also need to provide a lot of information.
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But what we look at, most, I would say, is
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historical performance of the acting people.
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And therefore, it's a quantitative measure, and
it helps just to have very, very normalized
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data, very standardized data.
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And this also applies to all other LPs out
there.
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Right?
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So even other heavy allocators talking from the
European ecosystem right now using the platform
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and are using the way we decided how funds
should display themselves in the best and most
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efficient way for them.
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And also on the opposite we see funds have a
certain type of capacity for fundraising,
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making it more effective, especially in these
days where fundraising is the the cash the
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money is not just lying around, but it was
maybe 5 years ago.
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So we need to kind of do your fundraising in
the most efficient way and therefore sort out
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everyone who's not interested very fast.
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A quick no is almost as good as a quick yes,
but nurturing over a month with a piece that
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are not even fully interested It's just a waste
of time.
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And this is why we created the way of AQVC
discovery out it's created right now.
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The best possible way to display for a VC fund
and the best possible way for VC funds to
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fundraise in the most effective way.
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You mentioned that quick no could be very
valuable.
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A lot times you see LPs ghosting or not
responding.
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Talk to me about the game theory.
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Why do LPs do this?
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Actually, David, I'm not very sure.
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I think it's a, also a matter of education.
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So, yeah, even if you, of course, get coldly
approach then maybe you just not have a
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capacity to answer everyone.
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Right?
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But if you start a conversation, I think it's a
matter of good education to at least say, no,
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thank you.
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Dosing is something we saw developing over the
last years more and more, to be honest.
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It's certainly also has maybe something to do
with the culture of venture capital in the last
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years.
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We see is today there in our opinion where
venture where private equity was standing 20
229
00:12:04,579 --> 00:12:05,459
years roughly ago.
230
00:12:05,459 --> 00:12:05,959
Right?
231
00:12:06,179 --> 00:12:11,745
So a lot of inference, currency, a lot of not
very well done communication as the last years
232
00:12:11,745 --> 00:12:13,024
were just kind of
233
00:12:13,024 --> 00:12:13,068
an hockey stick in terms of performance and
almost every VC fund.
234
00:12:13,068 --> 00:12:13,101
The communication was, I think, not treated
very well.
235
00:12:13,101 --> 00:12:13,764
So we cease
236
00:12:21,389 --> 00:12:26,190
not in total or in general, but many of them
need to learn how to properly communicate in
237
00:12:26,190 --> 00:12:27,070
the picture again.
238
00:12:27,070 --> 00:12:27,149
Right?
239
00:12:27,149 --> 00:12:32,110
Or we saw a huge correction phase in the last 2
years, and many of them learn learn first time.
240
00:12:32,110 --> 00:12:34,695
I think that it's not always just going up.
241
00:12:34,695 --> 00:12:36,934
And therefore, our proper communication is very
important.
242
00:12:36,934 --> 00:12:42,615
It's all about transparency and about trust,
and we just need to fight back to the method or
243
00:12:42,615 --> 00:12:46,860
way of treating each other in a very trusty and
and and respectful way.
244
00:12:46,860 --> 00:12:47,100
Yeah.
245
00:12:47,100 --> 00:12:47,980
It's it's interesting.
246
00:12:47,980 --> 00:12:50,259
I I think there's not only analogy to private
equity.
247
00:12:50,259 --> 00:12:54,139
I think there's an analogy between VC and
startups as well.
248
00:12:54,139 --> 00:12:55,100
People don't remember this.
249
00:12:55,100 --> 00:12:59,039
When I pitched to Anderson and Horowitz for my
second startup in 2012, they had revolutionized
250
00:12:59,259 --> 00:13:00,799
this concept of saying no.
251
00:13:01,095 --> 00:13:03,654
It was this revolutionary thing where they
would give you feedback.
252
00:13:03,654 --> 00:13:04,615
And it was very smart.
253
00:13:04,615 --> 00:13:08,214
And I think it was very long term greedy
because once you get that feedback, you're more
254
00:13:08,214 --> 00:13:11,754
likely to come back to that firm for a second
startup for a future round.
255
00:13:11,815 --> 00:13:17,360
I think LPs like VCs, falsely believe that if
they just don't communicate, maybe at some
256
00:13:17,360 --> 00:13:19,279
point, they'll be able to come in and say yes.
257
00:13:19,279 --> 00:13:24,419
But just like founders, GPs also have long
memories, and they remember who treats them.
258
00:13:24,639 --> 00:13:28,134
And any GP, I think that's worth their their
way in gold.
259
00:13:28,134 --> 00:13:31,654
Understand when somebody passes on a certain
round or certain vintage.
260
00:13:31,654 --> 00:13:35,254
I don't think that kills the relationship, and
I think there's a false premise on that.
261
00:13:35,254 --> 00:13:39,815
That basically kicking the can down the road is
somehow gonna create optionality where I think
262
00:13:39,815 --> 00:13:41,730
it actually hurts the relationship more than
help.
263
00:13:41,809 --> 00:13:42,929
I totally agree, David.
264
00:13:42,929 --> 00:13:47,169
You can't have everything you said right now
because a no is always okay.
265
00:13:47,169 --> 00:13:52,129
I mean, there might be a GP that is a total
rock star, but just does not fit into our
266
00:13:52,129 --> 00:13:53,169
portfolio right now.
267
00:13:53,169 --> 00:13:58,105
And therefore, telling no doesn't mean you are
a bad person or your skill set is not good
268
00:13:58,105 --> 00:13:58,424
enough.
269
00:13:58,424 --> 00:14:00,985
It's just like it doesn't fit to us as an
allocator.
270
00:14:00,985 --> 00:14:03,225
And we also have a mandate towards our LPs.
271
00:14:03,225 --> 00:14:03,384
Right?
272
00:14:03,384 --> 00:14:05,465
So we need to have restrictions and stuff like
that.
273
00:14:05,465 --> 00:14:08,745
So it's not always that you like to discredit
other people.
274
00:14:08,745 --> 00:14:12,790
It's more like, yeah, it's it's just not a fit
and a good no, and think of that.
275
00:14:12,790 --> 00:14:17,690
You you just said in reason kind of
revolutionized the no in 2012.
276
00:14:17,910 --> 00:14:19,750
So it's 10 plus years ago.
277
00:14:19,750 --> 00:14:23,269
It's not that much water down the river since
then.
278
00:14:23,269 --> 00:14:28,115
And, also, I think, is seen or an asset class
and talking also again out of the the Euro
279
00:14:28,115 --> 00:14:31,394
glasses, it's a new one, right, compared to
other asset classes.
280
00:14:31,394 --> 00:14:34,595
And there needs to be development, in this
direction.
281
00:14:34,595 --> 00:14:40,149
And it's easy to go or easier to compare it to
private equity as an envelope because private
282
00:14:40,149 --> 00:14:45,350
equity just they learned the same hard way that
communication is everything.
283
00:14:45,350 --> 00:14:45,648
It's just everything being transparent.
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00:14:45,648 --> 00:14:45,677
And also
285
00:14:45,677 --> 00:14:45,750
we tried as a QVC.
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00:14:45,750 --> 00:14:45,779
And, obviously,
287
00:14:45,779 --> 00:14:57,375
most of our answers are no take telling you
about 3a half 1000, we see funds we had to look
288
00:14:57,375 --> 00:15:01,465
at and invest it into 19 means most of them,
receive a note.
289
00:15:01,465 --> 00:15:01,475
Right?
290
00:15:01,475 --> 00:15:01,611
And we also try to find the best possible and
nicest law on
291
00:15:01,611 --> 00:15:01,632
the market.
292
00:15:01,632 --> 00:15:11,679
And also the platform serves here as a kind of
support anyway.
293
00:15:11,740 --> 00:15:17,019
So we we cannot support every single VC fund
around the globe with capital because we have
294
00:15:17,019 --> 00:15:17,674
also limited resources,
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00:15:17,674 --> 00:15:17,759
right, and and portfolios to structure.
296
00:15:17,759 --> 00:15:17,945
But what we can do is help you as a VC fund
anyway.
297
00:15:17,945 --> 00:15:17,974
And this
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00:15:17,974 --> 00:15:27,654
is what we really, really try hard with
platform making VC discovery.
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00:15:27,714 --> 00:15:30,456
So either we have capital or we have a platform
300
00:15:30,456 --> 00:15:30,607
that could help you or even more.
301
00:15:30,607 --> 00:15:30,628
Congratulations.
302
00:15:30,628 --> 00:15:30,736
10 x capital podcast listeners.
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00:15:30,736 --> 00:15:31,495
We have officially cracked the top 10 rankings
in the United States for
304
00:15:39,394 --> 00:15:39,894
investing.
305
00:15:40,070 --> 00:15:44,309
Please help this podcast continue climbing up
in the rankings by clicking the follow button
306
00:15:44,309 --> 00:15:44,709
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307
00:15:44,709 --> 00:15:48,629
This helps our podcast rank higher, which
brings more revenue to a show and helps us
308
00:15:48,629 --> 00:15:52,570
bring in the very highest quality guests and to
produce the very highest quality content.
309
00:15:52,709 --> 00:15:53,929
Thank you for your support.
310
00:15:54,424 --> 00:15:55,324
And you're okay.
311
00:15:55,384 --> 00:16:00,745
Speaking of the platform and AQVC discovery,
what problem cases are you solving around?
312
00:16:00,745 --> 00:16:03,404
Why do funds come to you to sign up?
313
00:16:03,464 --> 00:16:03,704
Yeah.
314
00:16:03,945 --> 00:16:04,824
Good question, David.
315
00:16:04,824 --> 00:16:07,245
Obviously, there's a lot of things that we do
through the platform.
316
00:16:07,304 --> 00:16:09,899
One of the things is obviously the
standardization of data.
317
00:16:10,059 --> 00:16:14,540
And for a lot of emerging managers, you know,
just having a beach deck is not the best way.
318
00:16:14,540 --> 00:16:18,320
And, you know, beach deck that's not created,
you know, up to optimal way for sophisticated
319
00:16:18,460 --> 00:16:23,259
LPs by just sharing your beach deck with LPs as
well, it's it's not ideal because usually LPs
320
00:16:23,259 --> 00:16:25,245
read the first five pages of that beach deck.
321
00:16:25,485 --> 00:16:30,365
So you need something else that allows you to
share your profile, share your data in a way
322
00:16:30,365 --> 00:16:33,264
that's actually designed, based on LP needs.
323
00:16:33,404 --> 00:16:37,264
So through the platform, they're actually able
to create a profile of their fund that allows
324
00:16:37,325 --> 00:16:39,929
LPs to run their due diligence from start to
end.
325
00:16:39,929 --> 00:16:45,210
And this includes all of the, you know, fund
terms to videos about the team, about the
326
00:16:45,210 --> 00:16:48,269
strategy, news section, you know, a due
diligence questionnaire.
327
00:16:48,570 --> 00:16:53,945
But on top of that, funds can actually also ask
for feedback through the platform from
328
00:16:53,945 --> 00:16:56,684
potential LPs or LPs that decline the
opportunity.
329
00:16:57,065 --> 00:17:02,105
And most of VC funds or all of them have LPs
that says it's not for us right now, but let's
330
00:17:02,105 --> 00:17:04,920
circle up later on when you're coming back with
the next fund.
331
00:17:05,080 --> 00:17:10,359
And these are huge opportunities that busy
funds need to actually take and nurture those
332
00:17:10,359 --> 00:17:13,011
relationships because when you're back in the
market, it doesn't help if
333
00:17:13,011 --> 00:17:13,108
you don't keep those relationships warm at that
at the same time to serve some funds who
334
00:17:13,108 --> 00:17:13,125
actually need it.
335
00:17:13,125 --> 00:17:13,143
So we do
336
00:17:13,143 --> 00:17:21,555
also LP lead generation as a service.
337
00:17:21,695 --> 00:17:25,394
So we try to identify suitable LPs for their
fund.
338
00:17:25,455 --> 00:17:27,008
So there's quite a lot of different dimensions
that
339
00:17:27,008 --> 00:17:27,174
comes to the platform and what we actually do
with
340
00:17:27,174 --> 00:17:27,241
the funds in question.
341
00:17:27,241 --> 00:17:27,341
You mentioned keeping relationships with LPs
342
00:17:27,341 --> 00:17:27,875
from vintage to
343
00:17:34,654 --> 00:17:35,154
vintage.
344
00:17:35,220 --> 00:17:36,419
What's the right cadence?
345
00:17:36,419 --> 00:17:37,460
What's the best practice?
346
00:17:37,460 --> 00:17:39,640
Maurice, you're a fundraising expert here.
347
00:17:40,659 --> 00:17:41,159
Yes.
348
00:17:41,539 --> 00:17:48,054
At least the the title says that's, I think the
right cadence, at least at AQVC, we right into
349
00:17:48,275 --> 00:17:52,650
certain buckets of following up or nurturing
prospects, potential investors from a very low
350
00:17:52,650 --> 00:17:52,683
cadence, meaning just
351
00:17:52,683 --> 00:17:52,804
signing up for our newsletter and just stay up
to date
352
00:17:52,804 --> 00:18:03,149
to a more, what, let's say, a very high
cadence, which mean follow-up or following up
353
00:18:03,149 --> 00:18:04,829
every kind of days.
354
00:18:04,829 --> 00:18:05,869
So weekly, I would say on a
355
00:18:05,869 --> 00:18:05,881
weekly basis.
356
00:18:05,881 --> 00:18:05,911
It really depends on both.
357
00:18:05,911 --> 00:18:05,958
I would say the maturity of the investor.
358
00:18:05,958 --> 00:18:05,988
So lower maturity investors need
359
00:18:05,988 --> 00:18:20,005
to be kept in a more close way to just be
attached or keep them attached to the asset
360
00:18:20,005 --> 00:18:21,465
class and to to your product.
361
00:18:21,845 --> 00:18:23,256
And I think a higher cadence makes it easier to
follow even though the follow ups are maybe in
362
00:18:23,256 --> 00:18:23,270
a less regular basis.
363
00:18:23,274 --> 00:18:23,684
So it really depends.
364
00:18:23,684 --> 00:18:34,759
And Also, this is a thing that we see as an
asset class needs to learn
365
00:18:34,759 --> 00:18:34,839
was for us talking to see how venture capital
funds are able to educate their startup
366
00:18:34,839 --> 00:18:34,894
portfolios in how to fundraise, how to segment,
how to know
367
00:18:34,894 --> 00:18:51,214
your customer, and how that the mass of these
refunds is really in or at least how less time
368
00:18:51,214 --> 00:18:51,726
and effort they put in segmenting their
investor base.
369
00:18:51,726 --> 00:19:02,079
So you really need to know your customer,
especially in days where not 1 or 2 of 100 MLP
370
00:19:02,079 --> 00:19:06,759
contacts is investing, but more 1 or 2 of 200,
you really don't want to waste your time.
371
00:19:06,759 --> 00:19:07,039
And Do
372
00:19:07,039 --> 00:19:11,599
you think there's an eightytwenty rule to LPs
and that you spend 80 percent of your time
373
00:19:11,599 --> 00:19:16,134
focusing on on the larger writers, what what
have you found in terms of LP composition and
374
00:19:16,134 --> 00:19:16,634
funds?
375
00:19:16,855 --> 00:19:17,968
It also depends really when funds do or when
funds start as an emerging manager,
376
00:19:17,968 --> 00:19:18,083
as a nature of things, the biggest chunk of
377
00:19:18,083 --> 00:19:29,210
the capital of the AUM comes high net worth
individuals and family offices smaller ones
378
00:19:29,210 --> 00:19:33,849
than single, bigger ones and multi family
offices up to some corporate or insurance or
379
00:19:33,849 --> 00:19:35,609
institutional money or foundations even.
380
00:19:35,609 --> 00:19:38,642
And it's also, like, with fundraising for a
starter view, start with business angles,
381
00:19:38,642 --> 00:19:42,589
right, and increase your check size over time.
382
00:19:42,704 --> 00:19:43,585
An age of things.
383
00:19:43,585 --> 00:19:49,585
And when you raise your 3rd 4th 5th generation,
it's either important to increase your check
384
00:19:49,585 --> 00:19:53,825
size, at least when you want to increase your
your AUM proven pitch at accuracy, to be
385
00:19:53,825 --> 00:19:56,509
honest, we we like funds that are smaller.
386
00:19:56,509 --> 00:20:01,149
It's a lot of beautiful is what we think in in
most of the cases, applies here.
387
00:20:01,149 --> 00:20:07,230
And also increasing AUM for vintage to vintage
is not the very best side always.
388
00:20:07,230 --> 00:20:11,954
So the best case is you raise your fund and you
stick to your vessel this is what every VC hunt
389
00:20:11,954 --> 00:20:12,026
really wants to do.
390
00:20:12,026 --> 00:20:12,328
This will not work for everyone as the high net
worth individuals or or smaller investors tend
391
00:20:12,328 --> 00:20:12,363
to not
392
00:20:12,363 --> 00:20:15,894
re up into new upcoming vintages.
393
00:20:23,609 --> 00:20:26,730
And therefore, the time you spend, and this is
back to your question.
394
00:20:26,730 --> 00:20:30,490
David, the time you spend for a bucket will
change over time.
395
00:20:30,490 --> 00:20:35,391
At the beginning, you will really work hard for
5 hour k ticket and becoming more and more
396
00:20:35,391 --> 00:20:35,522
professional or also institutional and fund
397
00:20:35,522 --> 00:20:42,158
raisable as a DC file as company for for a
piece, you will also start spending more time
398
00:20:42,158 --> 00:20:42,167
on bigger tickets.
399
00:20:42,167 --> 00:20:42,214
But the statistic, anyway, says that at least a
family office or high net worth individual
400
00:20:42,214 --> 00:20:56,889
ticket comes on average after 2 years of
knowing the GP, which means you need to nurture
401
00:20:56,889 --> 00:21:00,190
and you need to spend a lot of time on this
type of buckets and investors.
402
00:21:00,329 --> 00:21:04,345
You've raised for startups for venture funds
and now for fund of funds.
403
00:21:04,345 --> 00:21:05,544
Which one is the hardest?
404
00:21:05,544 --> 00:21:08,044
Which one is the easiest and rank those for me?
405
00:21:08,105 --> 00:21:09,724
The easy startup is easiest.
406
00:21:10,105 --> 00:21:13,804
We see funds then and fund of funds is the
toughest enough to crack.
407
00:21:14,024 --> 00:21:14,825
Why is that?
408
00:21:14,825 --> 00:21:19,840
To be honest, David, I think when we started 3
years ago and went live 3 years ago, we are
409
00:21:19,840 --> 00:21:23,599
still also an emerging manager in terms of him
being a front of fund.
410
00:21:23,599 --> 00:21:24,099
Right?
411
00:21:24,240 --> 00:21:29,840
The thing is when you start to fundraise for a
startup, you really pitch and vision.
412
00:21:29,840 --> 00:21:34,755
You pitch a team, obviously, we are able to
pitch your team as well, but the more you get
413
00:21:34,755 --> 00:21:39,394
up from startup to receive front to front of
front, the more disconnected you are from the
414
00:21:39,394 --> 00:21:39,795
vision.
415
00:21:39,795 --> 00:21:40,035
Right?
416
00:21:40,035 --> 00:21:45,650
So the problem for a front of front is that I
cannot really pitch a visionary product, more
417
00:21:45,650 --> 00:21:49,170
an idea, or what I need to and we are a
financial product.
418
00:21:49,170 --> 00:21:49,410
Right?
419
00:21:49,410 --> 00:21:50,538
So the the fundraising is way
420
00:21:50,538 --> 00:21:50,656
more neutral, way more focused on we are a good
financial product for you.
421
00:21:50,656 --> 00:21:50,690
It really makes sense.
422
00:21:50,690 --> 00:21:59,184
It's not I think for visionaries, to be honest.
423
00:21:59,184 --> 00:22:05,025
It's it's hard to to sell the vision of venture
capital, which we all are getting up in the
424
00:22:05,025 --> 00:22:05,664
morning for.
425
00:22:05,664 --> 00:22:05,825
Right?
426
00:22:05,825 --> 00:22:09,074
We at least have been entrepreneurs back then
and are still by heart, but pitching a vision
427
00:22:09,074 --> 00:22:16,039
today is as a financial product, not that And
this makes it just difficult and different from
428
00:22:16,039 --> 00:22:18,119
raising a startup, especially in the early
days.
429
00:22:18,119 --> 00:22:21,579
Yoke, tell me about European Venture as it
stands in q 3 2024.
430
00:22:21,880 --> 00:22:23,079
Where's the market at?
431
00:22:23,079 --> 00:22:26,759
Obviously, it's been quite challenging market
for Europe as well, but both for the US and
432
00:22:26,759 --> 00:22:30,964
other regions, I mean, looking forward, we're
actually quite optimistic about the future of
433
00:22:30,964 --> 00:22:31,845
DC in Europe.
434
00:22:31,845 --> 00:22:34,984
Firstly, as Maurice told already, you know,
Europe is our whole market.
435
00:22:35,204 --> 00:22:40,005
We have quite an extensive network here, you
know, everything from DC funds to angels, to
436
00:22:40,005 --> 00:22:41,384
founders, and other LPs.
437
00:22:41,559 --> 00:22:46,680
So, you know, this gives us already quite a
significant edge in understanding the market
438
00:22:46,680 --> 00:22:46,721
dynamics and identify promising
439
00:22:46,721 --> 00:22:46,752
opportunities in Europe.
440
00:22:46,752 --> 00:22:46,836
I mean, it's true that Europe is lagging
441
00:22:46,836 --> 00:22:46,878
behind us in BC.
442
00:22:46,888 --> 00:22:57,575
But this is also quite natural in a way
considering that the asset class is actually
443
00:22:57,575 --> 00:22:58,375
born in the US.
444
00:22:58,375 --> 00:22:59,693
So it takes time for other regions to catch up
445
00:22:59,693 --> 00:22:59,731
if they ever do.
446
00:22:59,731 --> 00:22:59,818
But I would say Europe is steadily closing this
447
00:22:59,818 --> 00:23:08,890
gap, you know, despite being up quite
fragmented market with 20 to 30 different
448
00:23:08,890 --> 00:23:10,190
jurisdictions and regulations.
449
00:23:10,330 --> 00:23:14,410
Progress is still being made, and the asset
class is still growing when you look at on a
450
00:23:14,410 --> 00:23:15,230
longer horizon.
451
00:23:15,690 --> 00:23:20,085
When we look into the data, I mean, we see that
a company raising a seed run-in Europe has
452
00:23:20,085 --> 00:23:24,085
actually the same probability of, you know,
reaching a unicorn status as a company in the
453
00:23:24,085 --> 00:23:24,585
US.
454
00:23:24,804 --> 00:23:28,724
So for us, this is actually a crucial point
because it highlights the potential for high
455
00:23:28,724 --> 00:23:30,445
returns in in Europe.
456
00:23:30,445 --> 00:23:34,509
And additionally, you know, there's less
capital in Europe, for sure, which means
457
00:23:34,509 --> 00:23:38,910
there's a little bit less competition and also
as a result of this, the valuations are a
458
00:23:38,910 --> 00:23:39,890
little bit lower.
459
00:23:40,029 --> 00:23:44,670
But in general, it's a pretty good environment
to find promising fund managers who are able to
460
00:23:44,670 --> 00:23:49,734
find innovating companies in Europe, and we
still see innovative companies being founded in
461
00:23:49,734 --> 00:23:50,234
Europe.
462
00:23:50,454 --> 00:23:51,815
It's for sure not a perfect
463
00:23:51,815 --> 00:23:51,921
market yet if it ever will be, but of course,
we wanna be part of that
464
00:23:51,921 --> 00:23:59,434
ecosystem and also help and support European
ecosystem to grow.
465
00:23:59,640 --> 00:24:04,220
Marius, I wanted to double click on what you
said about diligence in 200 impact funds.
466
00:24:04,440 --> 00:24:08,119
Tell me about how you went about learning about
the market and what did you learn through
467
00:24:08,119 --> 00:24:09,339
having so many conversations?
468
00:24:09,400 --> 00:24:10,740
Take me through that evolution.
469
00:24:10,740 --> 00:24:16,125
You learn a lot especially when and you'd also
need to to make a difference here, David, when
470
00:24:16,125 --> 00:24:16,605
you
471
00:24:16,605 --> 00:24:16,807
evaluate emerging funds comparing to,
established ones.
472
00:24:16,807 --> 00:24:16,983
So established funds, as mentioned, the
quantitative
473
00:24:16,983 --> 00:24:28,369
part of the DD is way higher than the
quantitative part when evaluating emerging
474
00:24:28,430 --> 00:24:28,930
managers.
475
00:24:29,150 --> 00:24:35,549
So in this case, I mentioned earlier, we were
looking for, yeah, emerging or developing fund.
476
00:24:35,549 --> 00:24:41,055
And therefore, we learned a lot of people in
team dynamics and we see funds are also
477
00:24:41,055 --> 00:24:43,775
companies, right, and GPs needs to understand
that.
478
00:24:43,775 --> 00:24:48,035
And this is very interesting because I think
many of the VC fund managers out there don't
479
00:24:48,095 --> 00:24:50,974
really realize that they are building a company
here.
480
00:24:50,974 --> 00:24:55,319
So that team dynamics are as crucially
important as it is in startups or in other
481
00:24:55,319 --> 00:25:00,919
companies and that we see funds or building a
VC fund as a GP is not the fastest way to
482
00:25:00,919 --> 00:25:01,864
become rich, right, and many of them are
approaching this asset just by the idea of
483
00:25:01,864 --> 00:25:09,974
becoming rich fast, which is talkingly, and
most of the case is not true.
484
00:25:09,974 --> 00:25:16,375
It's a long path of nose, a long path of sat
text, and a low path of not eating and sleeping
485
00:25:16,375 --> 00:25:18,615
until you even know if you're an outlier or
not.
486
00:25:18,615 --> 00:25:19,115
Right?
487
00:25:19,254 --> 00:25:23,929
So we learned a lot about different team
dynamics, different team settings, different
488
00:25:23,929 --> 00:25:24,964
people being humble or not, and therefore, how
to believe or how to invest in being or
489
00:25:24,964 --> 00:25:25,044
becoming convinced of very young teams where
you don't have a lot of quantitative aspects
490
00:25:25,044 --> 00:25:25,950
proven to check.
491
00:25:35,105 --> 00:25:40,005
This was, I think, one of the most important
learnings for us when you do the quantitative
492
00:25:40,384 --> 00:25:41,445
tracking and analysis.
493
00:25:41,585 --> 00:25:43,282
It's just a matter of good and very efficient
and sustainable comparison.
494
00:25:43,282 --> 00:25:43,285
Right?
495
00:25:43,285 --> 00:25:43,345
So qualitative one is always the one where you
need also experience where you need a feeling
496
00:25:43,345 --> 00:25:47,525
for people.
497
00:25:50,869 --> 00:25:54,309
Not only reference calls will help, but also
your feeling of the team.
498
00:25:54,309 --> 00:26:00,390
And if they are able or in the situation that
they can crack this, not by building a very,
499
00:26:00,390 --> 00:26:05,144
very experienced and also out in some of the
institutional company that is doing, you see,
500
00:26:05,144 --> 00:26:07,305
in fund investments, and this was the crucial
learning.
501
00:26:07,305 --> 00:26:10,765
How long does it take to become rich as a GP to
take me through the economics?
502
00:26:12,505 --> 00:26:17,884
It's a little didn't do or I don't have the
math provided here, David, but on average,
503
00:26:18,640 --> 00:26:21,839
prounding startup to exiting startup will take
you 10 years.
504
00:26:22,000 --> 00:26:22,799
It might be 6.
505
00:26:22,799 --> 00:26:23,440
It might be 8.
506
00:26:23,440 --> 00:26:24,480
It might be 12 or 14.
507
00:26:24,480 --> 00:26:28,720
We have seen everything in the last years of
doing venture capital as an asset just.
508
00:26:28,720 --> 00:26:33,865
We had exits that were very fast We had exits
that were for whatever reason, not that fast.
509
00:26:33,865 --> 00:26:35,224
We know the companies were great.
510
00:26:35,224 --> 00:26:39,544
And also the market and the dynamics are
changing heavily in these days.
511
00:26:39,544 --> 00:26:46,009
So, I mean, as you all know, we were not see a
lot of IPOs, which are not profitable companies
512
00:26:46,009 --> 00:26:49,789
that are not profitable in the future, but the
market is kind of changing and turning.
513
00:26:49,849 --> 00:26:55,210
And I think also that private money, therefore,
needs to be available because you will see
514
00:26:55,210 --> 00:26:58,214
nature stage IPOs that we saw in the recent
years.
515
00:26:58,294 --> 00:27:02,054
And therefore, I think exit horizons will also
increase.
516
00:27:02,054 --> 00:27:07,974
So very, very fast exits, at senior of the past
war, still, I think, of good luck in the
517
00:27:07,974 --> 00:27:08,294
future.
518
00:27:08,294 --> 00:27:10,855
And so you need to build really stable.
519
00:27:10,855 --> 00:27:13,034
And in the best case, you can break even
companies.
520
00:27:13,369 --> 00:27:14,970
So that would take just time.
521
00:27:14,970 --> 00:27:16,650
It's not the easy way to be coverage.
522
00:27:16,650 --> 00:27:20,490
The way that I look at it, just the simple math
is just like any other business.
523
00:27:20,490 --> 00:27:21,710
It requires compounding.
524
00:27:21,850 --> 00:27:25,609
It's an industry you wanna go into if you
really wanna do it for 10, 20 years because
525
00:27:25,609 --> 00:27:28,504
what happens is Let's say you start a fund 1,
it's $50,000,000.
526
00:27:29,044 --> 00:27:30,904
You get your 2% management fees.
527
00:27:30,964 --> 00:27:35,284
If you do a good job deploying that in 2 years,
you get another fund with 2% management.
528
00:27:35,284 --> 00:27:37,464
So you start to stack the management fees.
529
00:27:37,605 --> 00:27:42,830
And by roughly year 6, year 7, if you have a
good fund, you've now returned 1 DPI, and now
530
00:27:42,830 --> 00:27:43,970
you're into the carry.
531
00:27:44,109 --> 00:27:49,170
A lot of people say fund takes 14 or 12 years
to return all the capital.
532
00:27:49,309 --> 00:27:51,048
The real question for a GP side is when you
start getting carry, and that's roughly about
533
00:27:51,048 --> 00:27:51,570
year 6 or 7.
534
00:27:54,029 --> 00:27:59,325
So If, and this is a big if, you know, very few
funds actually make it from fund 1 to fund 3.
535
00:27:59,325 --> 00:28:04,525
If you're able to get to fund 3, you get the
benefit of a 3 vintages of management fees and
536
00:28:04,525 --> 00:28:06,285
you start to really get into that carry.
537
00:28:06,285 --> 00:28:10,289
So it really is like, all things in business a
very long term game.
538
00:28:10,289 --> 00:28:12,943
You're really focused at AQVC in terms of
539
00:28:12,943 --> 00:28:12,963
democratizing venture capital.
540
00:28:12,963 --> 00:28:13,043
In many ways, you're going in the opposite
direction of traditional venture,
541
00:28:13,043 --> 00:28:18,309
which raises from endowments and pension funds
and foundations.
542
00:28:22,465 --> 00:28:27,111
How does your product differ for the high net
worth and for the family office network versus
543
00:28:27,111 --> 00:28:27,128
the traditional venture capital LP?
544
00:28:27,128 --> 00:28:27,765
First of all, we see thunder fund, which is a
for your new product, let's say, it's just
545
00:28:36,140 --> 00:28:37,580
a few years old, I think.
546
00:28:37,580 --> 00:28:41,340
And this is because the ecosystem is not the
oldest.
547
00:28:41,340 --> 00:28:41,830
So we are talking
548
00:28:41,830 --> 00:28:41,940
about 20 years now of a kind of developing
ecosystem of
549
00:28:41,940 --> 00:28:41,980
venture capital in Europe.
550
00:28:41,980 --> 00:28:51,335
And therefore, for fund of funds that wanted to
stream the market and really have the
551
00:28:51,335 --> 00:28:55,035
possibility to compare companies before
creating portfolio.
552
00:28:55,174 --> 00:28:57,450
Like we did, again, 3000 plus we see funds
screened and
553
00:28:57,450 --> 00:28:57,545
ended up with an essence of 20 roughly.
554
00:28:57,545 --> 00:28:57,628
So therefore, you need enough portfolio
potential.
555
00:28:57,628 --> 00:28:57,640
Right?
556
00:28:57,640 --> 00:28:57,687
And I think this
557
00:28:57,687 --> 00:29:07,470
is even possible only in the or since the last
year.
558
00:29:07,470 --> 00:29:13,070
So, therefore, risk is one of the most
important hurdles we wanted to mitigate by
559
00:29:13,070 --> 00:29:14,430
offering fund or funding.
560
00:29:14,430 --> 00:29:16,769
The second one is, I think, in transparency.
561
00:29:17,230 --> 00:29:21,755
So normally when you invest into a VC fund, a
classic one will close, and it's are you invest
562
00:29:21,755 --> 00:29:24,414
in a dry powder or dry clothes status.
563
00:29:24,554 --> 00:29:24,794
Right?
564
00:29:24,794 --> 00:29:27,115
So you invest really purely into the team.
565
00:29:27,115 --> 00:29:31,684
You don't know what they will buy, where they
will invest, when they will invest with a QVC,
566
00:29:31,684 --> 00:29:32,933
you receive almost
567
00:29:32,933 --> 00:29:32,998
done portfolio structure.
568
00:29:32,998 --> 00:29:33,019
Right?
569
00:29:33,019 --> 00:29:33,192
So you immediately are diversified with
investing or
570
00:29:33,192 --> 00:29:33,322
with the moment you are investing.
571
00:29:33,322 --> 00:29:33,430
We are an evergreen structure.
572
00:29:33,430 --> 00:29:33,625
That means that once you're less today, you
invest
573
00:29:33,625 --> 00:29:33,668
into everything.
574
00:29:33,668 --> 00:29:46,454
You will see past.
575
00:29:46,454 --> 00:29:46,615
Right?
576
00:29:46,615 --> 00:29:48,694
And this also contains the historical
portfolio.
577
00:29:48,694 --> 00:29:51,575
Also, of course, the upcoming lessons, but
there's fog there as well.
578
00:29:51,575 --> 00:29:55,575
And we aim for starting very early fulfilling
our investment strategy.
579
00:29:55,575 --> 00:30:00,134
So we wanted to be kind of done within our
investment strategy in the first one, one and a
580
00:30:00,134 --> 00:30:00,534
half years.
581
00:30:00,534 --> 00:30:03,090
And then within the strategy grow piece by
piece.
582
00:30:03,090 --> 00:30:05,970
And this is what we actually were lucky enough
to do.
583
00:30:06,210 --> 00:30:10,610
So the portfolio and the strategy of the
portfolio is kind of there, and it's proving
584
00:30:10,610 --> 00:30:12,930
how we planned to structure the whole
portfolio.
585
00:30:12,930 --> 00:30:15,750
I know we are just growing in this strategy.
586
00:30:16,144 --> 00:30:18,304
The third aspect, I would say, is access.
587
00:30:18,304 --> 00:30:23,845
So we are doing this since years in Europe, and
we have a great ecosystem.
588
00:30:24,065 --> 00:30:28,144
We, I think, started earlier than others with
proper communication in a good network.
589
00:30:28,144 --> 00:30:34,339
So we think that also by how we can add value
to the GPs we are investing in as an LP with
590
00:30:34,339 --> 00:30:40,500
our fund of fund brings us into deals where
maybe people, family offices that don't have
591
00:30:40,500 --> 00:30:44,755
the capacity to do this full time or even the
skill set to do have access to, right, and
592
00:30:44,755 --> 00:30:49,795
promise to have a better access and structure a
better portfolio than just a single multi cat
593
00:30:49,795 --> 00:30:51,714
or a multi haptic office can do it.
594
00:30:51,714 --> 00:30:56,755
And last but not least, the problem why many of
the European or American sons are over to
595
00:30:56,755 --> 00:31:01,289
families or island with individuals are not
investing more or even actually foundations or
596
00:31:01,289 --> 00:31:04,329
institutional investors in Europe are not
investing more into venture capital as
597
00:31:04,329 --> 00:31:04,809
liquidity.
598
00:31:04,809 --> 00:31:05,130
Right?
599
00:31:05,130 --> 00:31:10,329
So as you mentioned at David, you wait for 10,
12, 14 years until the full capital is paid
600
00:31:10,329 --> 00:31:11,289
back by a VC fund.
601
00:31:11,289 --> 00:31:16,664
So you kind of invest into a black box and then
you are stuck for 10 plus plus years.
602
00:31:16,664 --> 00:31:22,904
And we tried with accuracy to reengineer this
product or the structure how to invest into
603
00:31:22,904 --> 00:31:27,065
venture capital as a cost because venture
capital is, as we all know, the fuel of
604
00:31:27,065 --> 00:31:33,610
innovation, but kind of missed in the last 20
years to reinvent itself, as a product, as a
605
00:31:33,610 --> 00:31:36,090
financial product, how to approach and access
this asset class.
606
00:31:36,090 --> 00:31:38,009
And this is what we try to do with the EUC.
607
00:31:38,009 --> 00:31:42,009
So our product is structured as a analyst, it's
not complaining, and it even makes it
608
00:31:42,009 --> 00:31:43,230
structured wise possible.
609
00:31:43,644 --> 00:31:45,085
To exit during a year.
610
00:31:45,085 --> 00:31:49,105
And we offer this twice a year in a so called
semi liquid structure.
611
00:31:49,404 --> 00:31:55,365
Visual and mission on this is that we will be
able to have a semi liquid product one day
612
00:31:55,365 --> 00:32:01,819
where people just can invests ECF like into a
VC 500, Europe, or even globally, and more or
613
00:32:01,819 --> 00:32:03,099
less enter this asset class.
614
00:32:03,099 --> 00:32:06,639
It's not only one single region or one single
team or one single industry.
615
00:32:07,019 --> 00:32:10,224
You should be early also as a dentist or around
the corner.
616
00:32:10,224 --> 00:32:14,144
So rather than institutional arrest so with
deep, deep pockets to be able to invest into
617
00:32:14,144 --> 00:32:15,585
this very innovative asset class.
618
00:32:15,585 --> 00:32:17,664
And therefore, illiquidity is necessary.
619
00:32:17,664 --> 00:32:21,984
And venture capital is financial very illiquid,
of course, and we will not never solve this
620
00:32:21,984 --> 00:32:25,289
fully as it is an inference parent or or
illiquid asset class.
621
00:32:25,450 --> 00:32:30,730
But making it more and more liquid and
accessible for kind of everyone someday is what
622
00:32:30,730 --> 00:32:31,769
we are aiming for.
623
00:32:31,769 --> 00:32:32,250
You okay.
624
00:32:32,250 --> 00:32:35,049
You you oftentimes compete and to get into the
very top funds.
625
00:32:35,049 --> 00:32:37,515
What's the value out that AQVC brings to GPs
626
00:32:37,835 --> 00:32:38,494
Good question.
627
00:32:38,555 --> 00:32:42,954
I mean, if you look at the AQVCT, first of all,
I mean, we have experience of being, you know,
628
00:32:42,954 --> 00:32:47,214
founders, angel investors, VC fund managers, VC
fund managers.
629
00:32:47,595 --> 00:32:50,430
So as a group, we know the value chain from a
to zed.
630
00:32:50,509 --> 00:32:55,070
And we've probably seen an experience quite a
lot of the same hurdles or challenges that busy
631
00:32:55,070 --> 00:32:58,690
funds face today, and meaning that we're able
to support them with different topics.
632
00:32:58,830 --> 00:33:02,450
And so, you know, we can support them with
fundraising strategies, helping introductions,
633
00:33:02,734 --> 00:33:06,494
We're leveraging our network, introduce co and
follow on investors, and recruiting, for
634
00:33:06,494 --> 00:33:06,994
instance.
635
00:33:07,455 --> 00:33:09,375
And, yeah, this is something we have done in
the past.
636
00:33:09,375 --> 00:33:13,455
Then, of course, all of our portfolio of ones
will get access to the ABC discovery platform
637
00:33:13,455 --> 00:33:15,390
where we also give them hands on support.
638
00:33:15,789 --> 00:33:20,210
On top of that, we are quite active on bringing
more visibility through our newsletter and
639
00:33:20,210 --> 00:33:20,220
LinkedIn.
640
00:33:20,220 --> 00:33:20,240
We leverage,
641
00:33:20,240 --> 00:33:20,299
which we leverage quite a lot.
642
00:33:20,299 --> 00:33:20,370
We actively showcase the funds and people
643
00:33:20,370 --> 00:33:20,400
behind our investments.
644
00:33:20,400 --> 00:33:31,954
Obviously, not all VC funds want or need any
support from us, and that's fine too.
645
00:33:31,954 --> 00:33:35,734
But those that do, we will for sure help them
as much as they want.
646
00:33:36,035 --> 00:33:38,835
And, I think that's the philosophy we follow in
general.
647
00:33:38,835 --> 00:33:40,535
Everything we we do at AQVC.
648
00:33:40,674 --> 00:33:44,920
I mean, we wanna be in value at LP, but we also
want to support and, you know, strengthen the
649
00:33:44,920 --> 00:33:45,740
VC ecosystem.
650
00:33:46,039 --> 00:33:50,920
So we're producing quite a lot of educational
materials to both pieces and LPs out there.
651
00:33:50,920 --> 00:33:55,559
Everything from fundraising guides to pitch
deck templates, to guides on fund marketing
652
00:33:55,559 --> 00:33:55,809
regulations.
653
00:33:55,809 --> 00:34:00,525
So I think this is such an important asset
class that we want to help to grow the
654
00:34:00,525 --> 00:34:01,025
ecosystem.
655
00:34:01,245 --> 00:34:03,904
Where do you see AQVC in 5, 10 years?
656
00:34:04,205 --> 00:34:09,565
In 5 to 10 years, AQEC will be one of the
leading fund in Europe and go to address as a
657
00:34:09,565 --> 00:34:14,480
platform that makes capital formation within
the venture capital asset class more official
658
00:34:14,480 --> 00:34:19,380
than if someone thinks of venture capital of
funds, they should think of AQVC.
659
00:34:19,679 --> 00:34:21,280
This is where we want to go.
660
00:34:21,280 --> 00:34:25,840
What would you like our listeners to know about
you, about AQVC, or anything else you'd like to
661
00:34:25,840 --> 00:34:26,534
shine a light on?
662
00:34:26,614 --> 00:34:31,094
What I want to tell emerging managers is it's a
tough road.
663
00:34:31,094 --> 00:34:32,155
It's a tough journey.
664
00:34:32,375 --> 00:34:38,885
And I think what should not be treated or what
can be treated enough well is team.
665
00:34:39,320 --> 00:34:42,699
So team dynamics choose your right partners is
kind of everything.
666
00:34:42,920 --> 00:34:48,039
And therefore, I think this is one of the
things that also makes a QVC unique, not only
667
00:34:48,039 --> 00:34:53,175
that we have by ourselves a great team and a
great partnership with all our colleagues but
668
00:34:53,175 --> 00:34:56,614
we also try to be for every receive fund a
really good partner.
669
00:34:56,614 --> 00:34:58,295
We know that it's really tough out there.
670
00:34:58,295 --> 00:35:04,055
We received tons of notes over the last 15
years, and we will receive another ton of notes
671
00:35:04,055 --> 00:35:06,000
in the upcoming 15 years, for sure.
672
00:35:06,239 --> 00:35:10,559
But when you have or once you have the right
partner at your side, I think this is doable.
673
00:35:10,559 --> 00:35:16,239
We as a QC want to be the partner that helps
you as a VC fund or as an investor and to start
674
00:35:16,239 --> 00:35:20,099
ups with either capital or with support on any
kind.
675
00:35:20,320 --> 00:35:25,054
And the mission is also not only investing and
creating profit.
676
00:35:25,054 --> 00:35:30,195
Also, sure, we are a fund that wants and will
create return and profit for itself.
677
00:35:30,574 --> 00:35:34,994
But we also want to really support the
ecosystem of venture capital.
678
00:35:35,130 --> 00:35:36,809
Not only, but especially in Europe.
679
00:35:36,809 --> 00:35:41,789
Europe needs that and Europe needs innovation
to be able to survive in the upcoming decades.
680
00:35:41,929 --> 00:35:44,009
And therefore, innovation needs capital.
681
00:35:44,009 --> 00:35:45,210
It's not only the idea.
682
00:35:45,210 --> 00:35:45,449
Right?
683
00:35:45,449 --> 00:35:47,389
It's, unfortunately, also capital.
684
00:35:47,449 --> 00:35:52,454
What's the biggest constraint to Europe,
whether it's financial, political, or however
685
00:35:52,454 --> 00:35:55,259
controversial you'd like to be, what's the main
constraint to keeping the European VC ecosystem
686
00:35:55,259 --> 00:35:55,326
from reaching its potential?
687
00:35:55,326 --> 00:35:55,427
I think Europe has the huge
688
00:35:55,427 --> 00:35:56,244
problem besides the political side of
689
00:36:03,989 --> 00:36:07,510
right hand wings becoming more and more
airtime, which is not a good development,
690
00:36:07,510 --> 00:36:11,610
obviously, but the big problem in Europe is
that it's very factual.
691
00:36:11,750 --> 00:36:13,449
So you are very fragmented.
692
00:36:13,909 --> 00:36:17,296
So you have totally dozens of different
regulations.
693
00:36:17,296 --> 00:36:19,724
Market team is a really an issue.
694
00:36:19,724 --> 00:36:20,445
Cross border.
695
00:36:20,445 --> 00:36:23,825
We have different systems, different financial
authorities.
696
00:36:24,125 --> 00:36:29,585
And therefore, by itself, Europe is, per se, a
huge market, but divided into very, very many
697
00:36:29,885 --> 00:36:33,679
smaller markets, which you need to conquer and
cover somehow this is really a problem.
698
00:36:33,679 --> 00:36:38,799
Also, Europe is very good in regulating
themselves before even having started with
699
00:36:38,799 --> 00:36:43,039
something, and this is also, I think, in that
mindset that needs to be changed on hold.
700
00:36:43,039 --> 00:36:44,079
Thanks for jumping on.
701
00:36:44,079 --> 00:36:47,619
Look forward to to continuing the conversation
in person and chat soon.
702
00:36:47,655 --> 00:36:48,855
Thank you for grabbing us, David.
703
00:36:48,855 --> 00:36:50,235
Thanks for having us, David.
704
00:36:51,735 --> 00:36:55,835
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