Our sweet spot reloaded

October 9, 2016

Years ago someone gave me the moniker of “Rude VC” because I had a reputation for giving curt (ok, sometimes rude) feedback to investment opportunities which we’ve chosen to decline. The moniker stuck, partly because I espouse the idea of being direct and transparent to entrepreneurs. Time is an entrepreneur’s most precious asset, so why string them along if I’m not convinced to invest? Moreover, I feel it’s my duty to the ecosystem to provide an honest opinion on an entrepreneur’s plan: building a company is a continuous process of adjustment and improvement. I believe good entrepreneurs will be receptive to a diverging point of view, and I’d like to think I’ve improved my bedside manner too.

The principle of transparency also entails being clear on one’s investment scope. Realizing that my previous explanation of our fund’s investment scope is nearly 7 years old, here’s a refresh.

Europe

europe_map2Outside of my existing European portfolio, I focus my investing activity primarily on Japan these days. However, my partners are solely focused on the EU geographies, specifically on startups that tick the following boxes:

  • operating in the domain of financial innovation – this includes Fintech, Insurtech, and even Hardware (to the extent that it is hardware-enabled-software for financial services); and
  • based in Europe (especially France and Benelux) yet target pan-European or global expansion; and
  • having already demonstrated some early market traction. Typically they prefer a minimum of 3M€ in revenue, but this is one flexible.
  • Alternatively, opportunities that could represent business partnerships or combinations with their existing fintech portfolio companies — notably: Paytop, Smile&Pay, WizyPay, TransferTop, Credit.fr, Retency, Populis — are also welcome.

Japan

japan-mapSpending most of my time in Japan now, my primary focus centers on early-stage Japanese startups. Regarding investment themes, I’ve written previously about the appeal of Fintech and Blockchain in Japan, but I’ve also invested in a couple AI projects and B2B SaaS startups. Although my criteria are not so rigid for the moment, I look for Japan-based entrepreneurs who possess global ambition.

I am also open to hearing from European startups that are genuinely interested in Japan, a market which I believe merits serious consideration in some cases. But only from those willing to make the multi-year commitment necessary to succeed.

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posted in venture capital by mark bivens

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