👋🏾 Hi friends!

Something quite bizarre happened over the last few weeks. I’ve been building Nothing Ventured since May 2021 and whilst it’s had a lot of support and love from individuals, we hadn’t seen that pulling through in the numbers – that is until a couple of weeks ago…

On October 7th, we had just over 540 subscribers on YouTube and it had taken us 20 months to get there, and then…

WE 10Xd in 2 weeks 🤯 

We got to over 5k subscribers by around the 21st of the month and, as of today we’re sitting at over 6.6k.

Whilst you can definitely argue that this is a bit of a vanity metric, it nevertheless feels great to see some feedback after putting in the hard work for so long!

As you know, I’m well underway writing about all the things I’ve learned from the last couple of decades as founder, CFO and CEO, so sign up for early access to Off Balance – The Book and feel free to share with anyone else you think might enjoy it 😄. I’m setting myself the target of getting through a large portion of it whilst I’m away in Italy during August – wish me luck!

Now let’s get down to business…

𝗧𝗵𝗲 𝗱𝗲𝗮𝘁𝗵 𝗼𝗳 𝗮 𝗩𝗖 𝗳𝗶𝗿𝗺 𝗰𝗼𝗺𝗲𝘀 𝗳𝗿𝗼𝗺 𝘀𝗲𝘁𝘁𝗹𝗶𝗻𝗴 𝗳𝗼𝗿 𝗮 𝗴𝗼𝗼𝗱 𝗱𝗲𝗮𝗹 𝗶𝗻𝘀𝘁𝗲𝗮𝗱 𝗼𝗳 𝗵𝗼𝗹𝗱𝗶𝗻𝗴 𝗼𝘂𝘁 𝗳𝗼𝗿 𝗮 𝗴𝗿𝗲𝗮𝘁 𝗱𝗲𝗮𝗹 💀

This week on Nothing Ventured, I spoke to Manish Patel, founder and Managing Partner of Nava Ventures, an early-stage investment firm aimed at working with companies that endeavor to create new markets, change industries, and positively impact the world.

He is a faculty member at Stanford University where he teaches introduction to Design Thinking and with over a decade in venture capital, he focuses on investing in companies that seek to solve deep human needs through technology.

Previously, Manish was a product leader at Google, working on key initiatives such as Google Ads, Maps, and TV and latterly worked with Larry Page and ran OKRs, Googles famous objectives and key results management system.

A graduate of Stanford with degrees in Engineering and Economics, he is also a Fellow at the University of Toronto’s Creative Destruction Lab, where he advises and mentors startups focused on developing products and services which leverage artificial intelligence and machine learning.

Here’s what we covered:

🤷🏾 People are people everywhere – you find red necks everywhere, even in Silicon Valley.

🤑 We’ve got to stop equating wealth with brilliance.

🙋🏾‍♂️ What it means to be a brown man in America.

🥇 How google went from the 50th search engine to number one.

🧱 “We shape our buildings and therefore they shape us.” Churchill was talking about actual buildings, today the corollary is the products in our pockets.

🥺 Building products that see the emotion behind the edge users.

📏 Unlocking experience over efficiency in product design.

🩷 The best products sit at the intersection of technology, business and human needs.

💥 How Manish became an accidental VC.

🤔 Rethinking the investment committee putting Kindness, Truth and Hustle at its heart.

⁉️ Manish’s contrarian advice – It’s ok to say I don’t know.

Check it out on YouTube!

Else listen on Spotify or Apple

If you have any feedback, or if there’s something you’re desperate to see me include, just reply to this mail or ping me online – I’m very open to conversations.

If you like what I’m putting out, do give me a follow on LinkedIn, Twitter and Instagram.

(If you are trying to connect with me on LinkedIn, maybe read this post I wrote and make sure to start your request with “Off Balance” and, more importantly, tell me why you’d like to connect 💪🏾)

Don’t forget to like, rate and subscribe to Nothing Ventured on Apple, Spotify or YouTube, it really helps more people see what we’re doing – you can find links to these (and more including my Office Hours) right here!

As always, my office hours are open, if you’d like to chat about anything finance, tech or venture releated, just grab some time 😊.

I hope you found Off Balance #55 valuable. As always, I’d love to get your feedback and understand the sort of topics you would love to hear about.

Just hit reply to this mail or drop me a line at [email protected] and let me know 😊

🚀And that’s a wrap for this edition of Off Balance – I’d appreciate your feedback so just reply to this email if you’ve got something you’d like to say.

📨 If you think someone else might love this, please forward it on to them,

🎧 Finally, if you’re a fan of the Nothing Ventured podcast, please don’t forget to like, rate and subscribe wherever you get your pods – it really helps us spread the word.

That’s it from me so until next time…

Stay liquid 🙂

Aarish

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👋🏾 Hi friends!

Another week, another panel 😜

This week – actually scratch that – TODAY, I’ll be moderating a panel for the London Venture Capital Network exploring Opportunities for UK Aerospace & Spacetech.

If you’re curious about how the UK might be able to add its own value to the growing spate of spacetech ventures out there or if you’d just like to get a better grounding around what spacetech actually is and how to understand the upstream as well as downstream opportunities in the sector, then join me and the incredibly thoughtful panel of experts we’ve got together to shed some light on the vertical today (22nd October) at Level39, One Canada Square, Canary Wharf, London E14 5AB from 1800!

Get your tickets here and come say hello to me, Ana Raposo from the European Space Agency, Lucas Bishop, investor at Seraphin Space Fund, Dr Junayd Miah, Head of Space Science and Innovation at Deloitte and Kerri Mertz, Director of International Business at Slingshot Aerospace as we chat all things spacetech 🚀

I’m well underway writing about all the things I’ve learned from the last couple of decades as founder, CFO and CEO, so sign up for early access to Off Balance – The Book and feel free to share with anyone else you think might enjoy it 😄.

Now let’s get down to business…

In this weeks Off Balance:

🎙️ Helen Goldberg from LegalEdge on Nothing Ventured
👩🏾‍💼 How CFOs and GCs can help ensure the best outcomes for your startup

𝗪𝗵𝘆 𝗹𝗮𝘄𝘆𝗲𝗿𝘀 𝗮𝗿𝗲𝗻’𝘁 𝗷𝘂𝘀𝘁 𝗳𝗼𝗿 𝗹𝗶𝘁𝗶𝗴𝗮𝘁𝗶𝗼𝗻 👩🏼‍⚖️

In this week’s episode of Nothing Ventured, I sat down with friend of EmergeOne and the podcast, Helen Goldberg, Co-Founder and COO of LegalEdge which provides flexible in-house legal counsel services to fast growth companies.

Prior to founding LegalEdge, Helen spent over a decade focussed on M&A with Eversheds Sutherland and Baker McKenzie and as Sole Counsel and European Legal Director at Espotting / Miva and then headed up the international legal team for all activity outside the US at CBS / Viacom Outdoor.

In this episode, we talked about:

𝗧𝗵𝗲 𝗚𝗼𝗹𝗱𝗶𝗹𝗼𝗰𝗸𝘀 𝗟𝗲𝗴𝗮𝗹 𝗣𝗿𝗶𝗻𝗰𝗶𝗽𝗹𝗲:

↳ Helen introduced the concept of the “Goldilocks legal principle,” noting the importance of finding the right balance in legal resources. Many startups either over-rely on tech templates or rush to engage big law firms, often leading to inefficiencies and unnecessary costs. Instead, Helen advocates for a tailored approach—using in-house counsel for ongoing legal needs while leveraging technology and law firms appropriately for specific tasks. This strategy not only saves money but also ensures that legal work is handled effectively.

𝗧𝗵𝗲 𝗜𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝗰𝗲 𝗼𝗳 𝗘𝗮𝗿𝗹𝘆 𝗟𝗲𝗴𝗮𝗹 𝗮𝗻𝗱 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗔𝗱𝘃𝗶𝗰𝗲:

↳ One of the most critical points Helen made was the necessity of obtaining good legal and financial advice from day one. Founders often overlook the significance of a well-structured cap table and intellectual property management, which can lead to major complications down the line. Helen stressed that these foundational elements are not just administrative tasks; they are essential for securing investment and ensuring a smooth exit strategy. As she put it, “Don’t mess up the things you can fix early on.”

𝗘𝗺𝗯𝗿𝗮𝗰𝗶𝗻𝗴 𝘁𝗵𝗲 𝗙𝗿𝗮𝗰𝘁𝗶𝗼𝗻𝗮𝗹 𝗠𝗼𝗱𝗲𝗹:

↳ Helen discussed the rise of the fractional model in both legal and financial services, highlighting how it provides flexibility and expertise without the overhead of full-time hires. This model has gained traction, especially among startups that need strategic roles like general counsel or CFOs but may not yet be ready for a full-time commitment. By embracing this approach, businesses can access high-quality legal and financial support while maintaining agility in their operations.

Listen on YouTube, Spotify, Apple or wherever you get your podcasts!

If you have any feedback on the podcast or the newsletter, just reply to this mail or ping me online!

If you like what I’m putting out, do give me a follow on LinkedIn and Twitter.

(If you are trying to connect with me on LinkedIn, maybe read this post I wrote and make sure to start your request with “Off Balance” and, importantly, tell me why you’d like to connect 💪🏾)

Now let’s get into it.

Off Balance

I’m going to try something a little bit different on Off Balance moving forward. I’m going to take a deeper dive into one or more of the topics that have come up during the latest podcast to develop my own thoughts on the topic(s) as well as hopefully give you more context to the conversation 🙂 

My latest conversation wtih Helen is an ideal place to start as CFOs and GCs work hand in hand most of the time. As startups grow from seed onwards, the roles of CFO and General Counsel (GC) become increasingly crucial. Whilst seemingly distinct roles, their intersection can be crucial to driving a startup’s success. So let’s explore how they complement each other and contribute to startups’ growth and stability.

The Powerful Partnership: CFO and General Counsel in Startups

Strategic Decision-Making

The CFO and GC form a critical alliance in developming and guiding a startup’s strategic decisions. The CFO brings financial expertise and data-driven insights, while the GC provides legal perspective and risk assessment. Together, they create a balanced approach to decision-making that considers both financial implications and legal ramifications – something that is often lost in the drive to build quickly.

Financial Planning and Compliance

The CFO develops financial plans and forecasts, while the GC ensures these plans comply with relevant laws and regulations. This collaboration is essential for:

↳ Creating legally sound financial strategies
↳ Ensuring compliance with tax laws and financial regulations
↳ Developing risk management strategies that protect the company’s financial interests

Mergers and Acquisitions

During M&A activities, the CFO and GC work closely to:

↳ Conduct financial and legal due diligence
↳ Structure deals that are financially beneficial and legally appropriate
↳ Negotiate terms that protect the company’s (and the founders’) interests
↳ Manage the integration process post-acquisition

Fundraising and Investor Relations

As startups seek funding, the CFO and GC play equally pivotal roles in the process:

Preparing for Funding Rounds – the CFO prepares financial projections and valuation models, while the GC ensures all legal documentation is in order. Together, they:

↳ Develop pitch decks that are financially compelling and legally accurate
↳ Structure funding deals that balance financial needs with legal protections
↳ Negotiate term sheets that are favorable to the company

Managing Investor Relationships

Post-funding, the CFO and GC collaborate to:

↳ Provide regular financial and legal updates to investors
↳ Ensure compliance with investor agreements
↳ Manage board communications and governance issues

Risk Management and Compliance

In the startup environment which obviously can move incredibly quickly, managing risk is crucial. The CFO and GC work together to:

Identify and Mitigate Risks – the CFO assesses financial risks, while the GC evaluates legal and regulatory risks and together, they develop comprehensive risk management strategies.

Ensure Regulatory Compliance

↳ The CFO ensures financial compliance (e.g., accounting standards, tax regulations)
↳ The GC focuses on legal compliance (e.g., labor laws, data privacy regulations)

Their collaboration ensures the startup remains compliant across all areas of operation

Building and Scaling Operations

As startups grow, the CFO and GC are critical to scaling operations – taking the chaos of the startup phase and transforming it into a repeatable set of systems that create guardrails for sustainable growth:

↳ Developing Internal Processes – the CFO establishes financial controls and reporting processes whilst the GC creates legal frameworks and policies.

Together, they ensure these processes are efficient, compliant, and scalable.

Managing Human Resources

↳ The CFO handles compensation structures and financial aspects of hiring
↳ The GC manages employment contracts and ensures compliance with relevant labour laws

Their collaboration creates a framework for managing and growing the workforce which can happen incredibly quickly once a venture either raises capital or hits an inflection point where growth really starts to kick in.

Preparing for Exit Strategies

Arguably one of the most important areas where CFOs and GCs collaborate – and the ultimate goal for any high growth venture.

Whether aiming for an IPO or acquisition, the CFO and GC are instrumental in preparing the startup for exit:

↳ IPO Preparation – the CFO prepares financial statements and works on valuation and the GC ensures regulatory compliance and prepares necessary legal documents.

Together, they navigate the complex process of going public – even more reason to ensure you have both areas of your business covered in advance so as to avoid any potential risk of the process being derailed (anyone remember ‘Community Adjusted EBITDA’ 😬?).

↳ Acquisition Readiness – the CFO prepares financial data rooms and valuation models whilst the GC handles legal due diligence and contract negotiations.

Working together helps ensure the company is well-positioned for a successful acquisition

The synergy between the CFO and GC is powerful in driving a startup’s success.

They work across different functions at different stages and as startups evolve, the partnership between these two roles becomes increasingly vital, ensuring that financial decisions are legally sound and legal strategies are financially viable.

By really investing in this collborative approach between the finance and legal functions of the organisation, startups can better navigate the complex landscape of growth with greater confidence, precision and stability.

As always, my office hours are open, if you’d like to chat about this or anything else, just grab some time 😊.

I hope you found Off Balance #54 useful. As always, I’d love to get your feedback and understand the sort of topics you would love to hear about.

Just hit reply to this mail or drop me a line at [email protected] and let me know 😊

🚀And that’s a wrap for this edition of Off Balance – I’d appreciate your feedback so just reply to this email if you’ve got something you’d like to say.

📨 And if you think someone else might love this, please forward it on to them,

🎧 Finally, if you’re a fan of the Nothing Ventured podcast, please don’t forget to like, rate and subscribe wherever you get your pods – it really helps us spread the word.

That’s it from me so until next time…

Stay liquid 🙂

Aarish

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👋🏾 Hi friends!

A day late, but hopefully not a dollar short.

Apologies for the late send folks, I’ve been locked down for the last few days in some seemingly endless meetings (I love it really).

It was during one of these meetings I got the devestating news of Steve O’Hear’s passing. It took me a while to process this as I had only started building a relationship with Steve but I could tell it would likely be one of those ones that would be incredibly meaningful.

You can read more about Steve’s life and legacy here and watch my interview with him from just a few months ago below.

R.I.P.

As you know, I’m well underway writing about all the things I’ve learned from the last couple of decades as founder, CFO and CEO, so sign up for early access to Off Balance – The Book and feel free to share with anyone else you think might enjoy it 😄. I’m setting myself the target of getting through a large portion of it whilst I’m away in Italy during August – wish me luck!

Now let’s get down to business…

𝗖𝗮𝗻 𝘆𝗼𝘂 𝗺𝗲𝗮𝘀𝘂𝗿𝗲 𝗺𝗶𝗻𝗱𝘀𝗲𝘁?

In the latest episode of Nothing Ventured, I spoke to Manish Karani, founder of Yareta, a science-backed AI tool that analyzes personal traits, values, and past experiences to forecast future success for corporations and investors.

Prior to founding Yareta, Manish spent 5 years at Coutts, working across Switzerland and Singapore. He then launched a Multi-Family Office Investment vehicle, managing investments for 28 ultra-high-net-worth families, deploying £15 million across Real Estate and Venture Capital. With over 30 investments, he achieved a 23% IRR in VC and 14% IRR in Real Estate. In 2023, Manish launched a £30 million fund focused on the plant-based sector with Sentient Ventures VC, an early-stage VC fund, but ultimately decided to return the funds to the LPs.

We talked about:

𝗧𝗵𝗲 𝗜𝗺𝗽𝗮𝗰𝘁 𝗼𝗳 𝗣𝗲𝗿𝘀𝗼𝗻𝗮𝗹 𝗛𝗮𝗿𝗱𝘀𝗵𝗶𝗽 𝗼𝗻 𝗘𝗻𝘁𝗿𝗲𝗽𝗿𝗲𝗻𝗲𝘂𝗿𝗶𝗮𝗹 𝗦𝘂𝗰𝗰𝗲𝘀𝘀

Manish shared his insights on the concept of HAIL — Hardship, Alienation, Illness, and Loss—and how these experiences can shape resilient entrepreneurs. He noted that it’s not the event itself that matters, but rather the individual’s process of overcoming it. This perspective challenges traditional views on what makes a successful founder and highlights the importance of resilience and mindset in navigating the entrepreneurial journey.

𝗡𝗮𝘃𝗶𝗴𝗮𝘁𝗶𝗻𝗴 𝗠𝗮𝗿𝗸𝗲𝘁 𝗖𝗵𝗮𝗹𝗹𝗲𝗻𝗴𝗲𝘀 𝗮𝗻𝗱 𝘁𝗵𝗲 𝗗𝗲𝗰𝗶𝘀𝗶𝗼𝗻 𝘁𝗼 𝗥𝗲𝘁𝘂𝗿𝗻 𝗖𝗮𝗽𝗶𝘁𝗮𝗹

We discussed the significant shifts in the market, particularly following Liz Truss’s announcement, which had a profound impact on the consumer tech space. Manish candidly explained his decision to return capital to LPs after realising that the current environment was not conducive to achieving the fund’s goals. This decision reflects a broader trend among emerging managers who must weigh the viability of their funds against market realities. It’s a reminder that sometimes, stepping back is the most strategic move.

𝗔𝘂𝘁𝗵𝗲𝗻𝘁𝗶𝗰𝗶𝘁𝘆 𝗶𝗻 𝗜𝗻𝘃𝗲𝘀𝘁𝗼𝗿-𝗙𝗼𝘂𝗻𝗱𝗲𝗿 𝗥𝗲𝗹𝗮𝘁𝗶𝗼𝗻𝘀𝗵𝗶𝗽𝘀

One of the most compelling parts of our discussion was the importance of authenticity in the relationships between investors and founders. Manish highlighted that true connections are built on honesty and vulnerability, which can often be lacking in the fast-paced world of venture capital. By fostering genuine relationships, both parties can better understand each other’s motivations and align their goals for mutual success.

We also spoke about:

🔥 How crucible events change your perspective and change your life.

💔 Have non UK LPs fallen out of love with the UK?

😓 Investing in Hardship, Alienation, Illness and Loss.

📏 It’s not the event that you’re measuring, it’s the individual’s process for managing that event – and that can be measured.

🚀 Quantifying entrepreneurship potential.

🤨 The 27 Traits of Entrepreneurs.

Check it out on YouTube!

Else listen on Spotify or Apple

If you have any feedback, or if there’s something you’re desperate to see me include, just reply to this mail or ping me online – I’m very open to conversations.

If you like what I’m putting out, do give me a follow on LinkedIn, Twitter and Instagram.

(If you are trying to connect with me on LinkedIn, maybe read this post I wrote and make sure to start your request with “Off Balance” and, more importantly, tell me why you’d like to connect 💪🏾)

Don’t forget to like, rate and subscribe to Nothing Ventured on Apple, Spotify or YouTube, it really helps more people see what we’re doing – you can find links to these (and more including my Office Hours) right here!

As always, my office hours are open, if you’d like to chat about anything finance, tech or venture releated, just grab some time 😊.

I hope you found Off Balance #53 valuable. As always, I’d love to get your feedback and understand the sort of topics you would love to hear about.

Just hit reply to this mail or drop me a line at [email protected] and let me know 😊

🚀And that’s a wrap for this edition of Off Balance – I’d appreciate your feedback so just reply to this email if you’ve got something you’d like to say.

📨 If you think someone else might love this, please forward it on to them,

🎧 Finally, if you’re a fan of the Nothing Ventured podcast, please don’t forget to like, rate and subscribe wherever you get your pods – it really helps us spread the word.

That’s it from me so until next time…

Stay liquid 🙂

Aarish

👋🏾 Hi friends!

This weekend I spoke at Niyo Fest about the gender and ethnic funding gap that seems to be persisting.

An interesting (and depressing) stat that I talked about from this Crunchbase article says it all:

It was great to have been able to give my perspective on what founders can practically do to improve their chances of securing funding – irrespective of the real or perceived barriers out there 💪🏾

I’m well underway writing about all the things I’ve learned from the last couple of decades as founder, CFO and CEO, so sign up for early access to Off Balance – The Book and feel free to share with anyone else you think might enjoy it 😄.

Now let’s get down to business…

In this weeks Off Balance:

🎙️ Andrea Gurnari from 2100 Ventures on Nothing Ventured talking about building hardware and investing across Europe.
🔥 What founders often get wrong about burn.

This week on Nothing Ventured I spoke to Andrea Gurnari, Partner at 2100 Ventures 🚀

2100 Ventures is a pre-seed and seed stage fund dedicated to supporting European entrepreneurs driving the new golden age of industrial innovation, investing in B2B businesses across a range of verticals. Prior to 2100 Ventures, Andrea was an investor with Atomico and Connect Ventures before which he worked in and co-founded startups in Italy and the UK.

We talked about:

💸 How early should founders be thinking about monetisation.
🇬🇧 The collaborative and international nature of the UK and why that’s a huge advantage for the country.
🤔 How the psychology of the founder impacts their decision making, accepting that the experiment hasn’t worked can be very difficult.
🧠 Why founders need deep intellectual honesty.
👹 The ecosystem owes it to founders to not demonise failure.
🧪 Everything starts with experiments.
🇪🇺 Can we innovate on the old economy of Europe and rebuild productivity the region has lost.
🤨 Andrea’s contrarian take – sometimes you have to judge the reasoning not the output.

Listen on YouTube, Spotify, Apple or wherever you get your podcasts!

If you have any feedback on the podcast or the newsletter, just reply to this mail or ping me online!

If you like what I’m putting out, do give me a follow on LinkedIn and Twitter.

(If you are trying to connect with me on LinkedIn, maybe read this post I wrote and make sure to start your request with “Off Balance” and, importantly, tell me why you’d like to connect 💪🏾)

Now let’s get into it.

Off Balance

Finance is full of acronyms and a variety of terms that, if you haven’t really learned them, can be easy to get wrong (I recall one founder I worked with who insisted on calling the cap table a capX table – conflating capex and capitalisation).

One of my bug bears is when folk talk about EBITDA as if it was the exact same thing as their burn.

New flash.

It’s not.

Here’s why…

Founders stop shorthanding EBITDA for your burn.

There is a reason that it’s not formally recognized by the Securities Exchange Commission (SEC), International Financial Reporting Standards (IFRS), or Generally Accepted Accounting Principles (GAAP).

But for tech founders that don’t have a strong understanding of finance, it feels like a power move to quote EBITDA and, as I have seen far too often, sub it in for burn.

Let’s break it down.

Take a SaaS business that sells 5 annual contracts at $50k a pop, has monthly payroll of $100k and, for the sake of simplicity has no other costs running through it.

On the Income Statement they’d actually show the following:

➡️ Revenue = $20.8k
➡️ Costs = $50k
➡️ EBITDA = $(29k) – loss.

Now let’s assume they capitalise 50% of their payroll to the balance sheet as they are creating long term IP.

The income statement now looks like this:

➡️ Revenue = $20.8k
➡️ Costs = $25k
➡️ EBITDA = $(4k) – loss.

But neither of these equate to their <actual> burn which looks like this:

➡️ Inflow = $250k
➡️ Outflow = $50k
➡️ Net burn = $200k inflow

These are three pretty different numbers and all three are correct from an accounting perspective, but only one of them shows the actual cash performance of the business.

Yes there is further complexity, yes there are other reasons to point to EBITDA, yes you can wrangle business numbers till the cows come home.

But I’m just here to inform and hopefully educate.

Cos you can trip yourself up and look naive if you get it wrong and it gets picked up.

So if you’re not sure what your actual burn is, have a chat to someone that can help you figure it out and remember,,, cash really is king.

As always, my office hours are open, if you’d like to chat about this or anything else, just grab some time 😊.

I hope you found Off Balance #52 useful. As always, I’d love to get your feedback and understand the sort of topics you would love to hear about.

Just hit reply to this mail or drop me a line at [email protected] and let me know 😊

🚀And that’s a wrap for this edition of Off Balance – I’d appreciate your feedback so just reply to this email if you’ve got something you’d like to say.

📨 And if you think someone else might love this, please forward it on to them,

🎧 Finally, if you’re a fan of the Nothing Ventured podcast, please don’t forget to like, rate and subscribe wherever you get your pods – it really helps us spread the word.

That’s it from me so until next time…

Stay liquid 🙂

Aarish

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👋🏾 Hi friends!

Even as autumn descends, it seems like we’re starting to see some green shoots in the venture ecosystem, a bit of life – or to put it more bluntly, a bit of cash coming back into the system – fingers crossed we start seeing a bit more activity so we can see 2024 out with a bang 🤞 🧨 

Don’t forget, I’ll be speaking at Niyo Fest this Saturday where I’ll be talking about Levelling the Playing Field: The Gender Finance Gap – come join me in Birmingham for a celebration of technology, culture and community 💪🏾

As you know, I’m well underway writing about all the things I’ve learned from the last couple of decades as founder, CFO and CEO, so sign up for early access to Off Balance – The Book and feel free to share with anyone else you think might enjoy it 😄. I’m setting myself the target of getting through a large portion of it whilst I’m away in Italy during August – wish me luck!

Now let’s get down to business…

𝗛𝗼𝘄 𝗙𝗶𝗱𝗲𝗹𝗶𝘁𝘆 𝘁𝗮𝗸𝗲 𝗮 𝗴𝗲𝗻𝗲𝗿𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝘃𝗶𝗲𝘄 𝘁𝗼 𝗶𝗻𝘃𝗲𝘀𝘁𝗶𝗻𝗴 𝗶𝗻 𝘃𝗲𝗻𝘁𝘂𝗿𝗲 📈

In this week’s episode of Nothing Ventured, I sat down with Alokik Advani, Managing Partner at Fidelity International Strategic Ventures, building and investing in fintech businesses and technologies that are strategic to Fidelity International.

Alokik’s career has spanned over two decades in finance setting up a strategic investment unit for Merrill Lynch in Europe after which he spent a decade building out Goldman Sach’s Strategic Investments team and practice in Hong Kong before joining VC firm Eight Roads as the MD for Fintech Strategic Investments.

In this episode we covered:

→ 𝗧𝗵𝗲 𝗘𝘃𝗼𝗹𝘃𝗶𝗻𝗴 𝗣𝗲𝗿𝗰𝗲𝗽𝘁𝗶𝗼𝗻 𝗼𝗳 𝗖𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗲 𝗩𝗲𝗻𝘁𝘂𝗿𝗲 𝗖𝗮𝗽𝗶𝘁𝗮𝗹: Alokik discussed the common misconceptions surrounding CVCs, often labeled as “dumb money” or slow-moving entities. However, he emphasised that strategic investors can bring significant value beyond just capital. By aligning incentives and actively participating in the growth of startups, CVCs can foster meaningful partnerships that drive innovation and revenue potential. This shift in mindset is crucial for founders to understand as they navigate their funding options.

→ 𝗘𝗺𝗯𝗿𝗮𝗰𝗶𝗻𝗴 𝗗𝗼𝘄𝗻 𝗥𝗼𝘂𝗻𝗱𝘀: In today’s market, many startups face the reality of down rounds. Alokik encouraged founders not to dread this scenario but to view it as an opportunity for recalibration. By focusing on building sustainable businesses with solid fundamentals—like achieving $100 million in ARR rather than chasing billion-dollar valuations—founders can create long-term value. This perspective shift can help startups weather economic uncertainties and emerge stronger.

→ 𝗧𝗵𝗲 𝗜𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝗰𝗲 𝗼𝗳 𝗗𝘂𝗿𝗮𝘁𝗶𝗼𝗻 𝗶𝗻 𝗩𝗲𝗻𝘁𝘂𝗿𝗲 𝗖𝗮𝗽𝗶𝘁𝗮𝗹: Alokik highlighted the need for flexibility in investment duration, especially in a rapidly changing market. Traditional 10-year fund structures may not suit all startups, particularly those in sectors experiencing significant shifts. Fidelity’s approach allows for a longer-term view, enabling them to support companies that require more time to realize their potential. This adaptability is essential for fostering innovation and ensuring that startups have the runway they need to succeed.

We also spoke about:

🤑 Whether corporate ventures only provide the dumb money and over pay?

👩🏾‍💼 Strategic investors are now involved in 20% of deals or more.

📉 Why you shouldn’t dread the downround

⏳ How startups can outlast the 10 year fund structure.

💸 Why if it isn’t easy to realise returns, everything slows down.

🤯 The mindset shift required to becoming the $100m ARR company rather than the $1bn company.

🐢 Alokik’s contrarian advice – Slow down and take your time sometimes.

Check it out on YouTube!

Else listen on Spotify or Apple

If you have any feedback, or if there’s something you’re desperate to see me include, just reply to this mail or ping me online – I’m very open to conversations.

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(If you are trying to connect with me on LinkedIn, maybe read this post I wrote and make sure to start your request with “Off Balance” and, more importantly, tell me why you’d like to connect 💪🏾)

Don’t forget to like, rate and subscribe to Nothing Ventured on Apple, Spotify or YouTube, it really helps more people see what we’re doing – you can find links to these (and more including my Office Hours) right here!

As always, my office hours are open, if you’d like to chat about anything finance, tech or venture releated, just grab some time 😊.

I hope you found Off Balance #51 valuable. As always, I’d love to get your feedback and understand the sort of topics you would love to hear about.

Just hit reply to this mail or drop me a line at [email protected] and let me know 😊

🚀And that’s a wrap for this edition of Off Balance – I’d appreciate your feedback so just reply to this email if you’ve got something you’d like to say.

📨 If you think someone else might love this, please forward it on to them,

🎧 Finally, if you’re a fan of the Nothing Ventured podcast, please don’t forget to like, rate and subscribe wherever you get your pods – it really helps us spread the word.

That’s it from me so until next time…

Stay liquid 🙂

Aarish

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