20VC Rising Star Why Founders Should Expect More From Their VCs How To Know PreInvestment Whether a VC Will Be Valuable and How to Get the Most Value Out of Them Is There a Misalignment Between Founders and VCs with Oana Olteanu, Partner @ SignalFir

In this engaging episode, the host welcomes Oana Altianu, a highly recommended partner at Signal Fire, known for her expertise in enterprise software and her notable investments in applied ML and developer tooling. Altianu, with an inspiring journey from Romania to Silicon Valley, has built a reputation for her founder-focused approach and her ability to foster a supportive community among her investments. She emphasizes the importance of VCs adding genuine value rather than being "Schrodinger's VCs," who are perceived as helpful but are not. Altianu also champions diversity in hiring, advocating for intentional recruitment and inclusive policies. Furthermore, she provides insights into effective board meeting strategies, the significance of actionable feedback, and the necessity for VCs to serve founders rather than their egos. Her approach is a testament to the evolving landscape of venture capital, where the success of investments is closely tied to the well-being and growth of the founders.

• Emphasizing the value of being genuine in professional settings.
• Highlighting the appreciation people have for authenticity over traditional networking methods.

"You don't have to be part of the golf club or the Battery club or whatever club. You can just be yourself and people will appreciate that."

This quote underscores the importance of authenticity and suggests that genuine personal connections can be more valuable than traditional, often exclusive, networking groups.

• Discussion of the selection process for a rising star in venture capital.
• Mention of the overwhelming number of submissions and recommendations received.
• Introduction of Oana Altianu, a standout individual with significant endorsements.

"Today we have an insanely special show, what I'm calling 20 VC's rising star inventor."

Speaker B introduces the episode's focus on a notable individual in the venture capital industry, highlighting the special nature of the show.

• Oana Altianu's career trajectory from Romania to the Bay Area.
• Her investments in enterprise software, applied ML, and developer tooling.
• Previous roles at Scale Venture Partners and SAP's AI seed fund.

"And prior to signal fire, Oana was at Scale Venture Partners, where she also invested in applied ML and developer tooling, investing in the likes of Observe, AI."

This quote outlines Oana Altianu's experience and expertise in the venture capital sector, specifically her focus on software and machine learning investments.

• Expression of gratitude for the support and contributions of various individuals and teams.
• Acknowledgment of the role of founders and inventors in the success of the venture community.

"And I'd also want to say a huge thank you to Jim Stoneham and Walter at Signal Fire and then also jdas for some amazing questions suggestions today."

Speaker B expresses gratitude to specific individuals for their input and support, emphasizing the collaborative nature of the venture community.

• Discussion on the concept of a "Schrodinger's VC," a venture capitalist who promises help but may not deliver value.
• Strategies for founders to identify and manage relationships with VCs effectively.

"Schrodinger's VC is what I call a VC who preaches a lot of help, especially before winning a deal. But then if you ask the founders, they will tell you they added no value."

Speaker A introduces the concept of a "Schrodinger's VC," a venture capitalist whose actual value to founders is uncertain or lacking, despite their promises.

• Importance of observing VC actions during the diligence process.
• The significance of selecting a partner over a firm based on value alignment and mentorship.
• The need for founders to understand how VCs react to adversity and challenging times.

"One, you have to really pay attention in the diligence process. Do they act in service of you? Not talk, act in service of you."

Speaker A emphasizes the need for founders to critically assess the behavior of potential VC partners during the due diligence phase to ensure they will provide genuine support.

• Advice on how founders can manage and derive value from VCs who underdeliver.
• The importance of holding VCs accountable and providing them with specific tasks.

"So the good news is you can extract value, and it's up to you as a founder, how to manage and keep them accountable and give them homework."

Speaker A provides practical advice on how founders can actively manage their relationship with underperforming VCs to maximize the value they receive.

• Effective time management is crucial, as time is a precious resource that should not be wasted.
• VC involvement should be more than passive; they should provide active, valuable input.
• Founders should have higher expectations of VCs, looking beyond non-harmful interactions to seek proactive advice and support.
• VCs have the experience of seeing many "games" and can offer strategic advice to founders.

"And time is precious, should not be wasted."

The quote emphasizes the importance of valuing time, implying that interactions that do not provide value, such as passive VC involvement, are a waste of time.

"Right now, many founders will tell you that if a VC is not harmful to the company, that's already a success."

This quote highlights a low bar set by founders for VC contributions, suggesting that merely not being detrimental is considered a success, which should not be the case.

• Founders are primarily responsible for key aspects like hiring, funding, and mission promotion.
• VCs can contribute by sourcing diverse candidates, guiding cultural fit during hiring, and providing strategic advice during crucial company phases.
• The relationship between founders and VCs should be collaborative, with VCs supporting but not taking over the founder's responsibilities.

"I do believe that hiring is a founder's job, but that doesn't mean for me as a vc, I cannot source them diverse candidates..."

This quote describes the supportive role a VC can play in the hiring process, aiding the founder without taking over their job.

• Giving negative or challenging feedback while maintaining a supportive relationship is essential.
• VCs should be proactive in helping founders identify and overcome obstacles, offering tangible assistance and data.
• Founder-to-founder communication is highly valued and often more impactful than VC advice.

"Founder to founder Talk always beats VC Talk."

This quote underscores the effectiveness of peer advice among founders, suggesting that a VC should facilitate these connections rather than always being the direct advisor.

• Building a community among portfolio companies can be beneficial.
• Providing a platform for founders to connect, share experiences, and seek advice creates a supportive environment.
• The "Romanian village mentality" suggests that a well-supported group can become self-sustaining, with members helping each other.

"I adopt the Romanian village mentality of if you raise one or two of the kids right, the other kids will raise themselves."

The quote draws a parallel between raising a family and managing a portfolio, suggesting that well-supported companies can foster a supportive environment for others.

• Alignments can be achieved by focusing on the success of the company and listening to the founder's needs.
• Potential misalignments may arise from differing priorities, such as a VC needing to demonstrate returns to their investors versus a founder's long-term company vision.
• Open communication and a willingness to find solutions are key to resolving misalignments.

"Our job as investors is to maximize the success of the companies while listening carefully to the founder."

This quote emphasizes the investor's role in aligning with founders by prioritizing company success and being attentive to the founder's perspective.

• The VC industry sees a range of behaviors, including self-promotion and credit-taking, which can spread misinformation and erode trust.
• Constructive self-promotion involves providing value and actionable advice to the ecosystem.
• Criticism of homogeneous hiring practices and the importance of diversity in the industry.

"I will call out if a VC takes credit for a founder or if they announce their newest associate bench, which is five white males."

The quote criticizes VCs who take undue credit or fail to promote diversity, suggesting that these practices are outdated and unacceptable.

• Board meetings can provide insight into the company's team-building and give functional leaders a voice.
• Effective board members are characterized by low ego, action-orientation, and a service mindset towards founders.
• Young investors on boards may make the mistake of talking too much instead of listening.

"I like Dan because he's low ego, he's very action oriented, and he acts in service of the founders."

This quote provides an example of what makes an effective board member, highlighting qualities such as humility, proactiveness, and founder support.

• Distill key events and discuss highlights and lowlights.
• Engage with board members individually before the meeting.
• Encourage board members to come prepared to add value.
• Preparation is crucial for effective board meetings.

"You have to distill down what has happened and talk about some highlights lowlights. Before the board meeting, talk with each board member individually, figure out what is it that they want to talk about and ask them for even like three things."

Speaker A emphasizes the importance of summarizing key events and engaging with board members prior to the meeting to understand their interests and concerns, which facilitates a more productive and focused discussion.

• Prefer sending documents over slide decks to avoid using them as a crutch.
• Sending a Word document encourages more honest feedback compared to a Google Doc.
• Documents allow for isolated writing which can lead to more truthful input.

"The other thing I would say is, actually, I really like it when they send not slide decks because they can just be used like crutches, but like a doc."

Speaker C prefers documents to slide decks for board meetings, suggesting that slide decks can lead to over-reliance and less critical engagement.

• Focus on the core issues without reiterating what can be informed beforehand.
• Read the room and ensure no single investor dominates the discussion.
• Founders should control the meeting and ensure balanced participation.

"First of all, is focus getting to the heart of the issue... As a founder, you control the poor meeting. It's on you to give everybody room."

Speaker A advises founders to concentrate on the main topics and manage the dynamics of the meeting to prevent any single participant from monopolizing the conversation.

• Founders can use allies in the boardroom to help manage dominant investors.
• Redirecting focus to the main agenda can help manage interruptions.
• Allies can intervene by asking questions or suggesting to table discussions for later.

"Yes, if a founder doesn't feel comfortable, I had the situations where the founder has, previous to the meeting, asked me if I can interfere by basically asking a question."

Speaker A discusses strategies for founders to handle dominant investors during board meetings, including seeking help from allies to maintain a balanced discussion.

• Some board members may meet after the meeting without the founder.
• It's important to debrief with the founder, providing both positive and constructive feedback.
• Post-meeting alignment among board members can be beneficial, especially for early-stage companies.

"I have boards where board members definitely like to meet afterwards... I always debrief with a founder, give positive as well as constructive feedback."

Speaker A supports the practice of board members meeting after the main meeting to align and then debriefing with the founder to provide feedback and support.

• Transparency is based on core values, such as speaking truth.
• Sharing difficulties openly with the team can help establish a safe environment for communication.
• Transparent communication allows for collective learning from experiences.

"I think it comes down to values, and one of my core values is speak truth... It's okay. And what actions can we take such that the next time we'll learn from."

Speaker A advocates for honesty and transparency with the team, emphasizing that sharing challenges can lead to mutual learning and improvement.

• Diversity must be present in the candidate pool to be hired.
• Companies should evaluate what makes them attractive to diverse candidates.
• Revision of non-inclusive policies is necessary to attract diverse talent.

"I think you cannot hire diverse people if they are not even in your candidate pool... then the problem is you and the non inclusive policies, and you should revise that."

Speaker A stresses the importance of having diverse candidates in the hiring pipeline and suggests companies should introspect and revise their policies to be more inclusive.

• Acknowledge unconscious bias and seek out diverse candidates actively.
• Consider changing recruiters if they fail to provide diverse candidates.
• Respectful outreach and communities like "she's ready to Dev" can aid in finding technical women.

"I think first, being aware of unconscious bias... You have to be intentional and you have to be able to hire these people to win them over."

Speaker A highlights the need for awareness of unconscious bias and intentional efforts to diversify the talent pipeline, including utilizing resources like communities for technical women.

• Women in leadership and inclusive policies can attract diverse talent.
• Demonstrating commitment to diversity through concrete policies is more effective than abstract statements.
• Parental leave, resource groups, training, and mentorship opportunities are examples of inclusive policies.

"What helps if you have women in leadership? Second, if you have inclusive policies and processes to collect feedback from all... you actually care about helping them thrive."

Speaker A discusses the importance of having women in leadership roles and implementing inclusive policies to attract and support diverse talent.

• The presence of a "token woman" in startups or on boards is a common issue.
• Building respect and establishing relationships can help mitigate the feeling of tokenism.
• The goal is to create a genuinely inclusive environment, not just to check a diversity box.

"Oh, all the time. I was countless time the only female at the startup working or in an engineering team, and now in boards."

Speaker A expresses frustration with tokenism and the frequent experience of being the only woman in professional settings, emphasizing the need for genuine inclusivity.

• Venture capitalists should prioritize serving founders over their egos.
• A shift in mindset can lead to significant improvements in the startup ecosystem.
• Founders should be supported, not overshadowed by venture capitalists' self-interest.

"What I would like the best to see is vcs who are in the business to serve the founders versus being in ventures to serve their ego."

Speaker A calls for a change in the venture capital industry, advocating for a founder-centric approach rather than one driven by the egos of venture capitalists.

• Transitioning from an operator to a venture capitalist (VC) can be difficult, as tangible results from efforts are not always immediately visible.
• Venture is about serving founders and their mission, which is gender-neutral.

The hardest thing coming from an operator role was the fact that you can work for months on something and not have anything to show. While before I would go to a customer conference, show the product, there was something tangible.

This quote highlights the challenge of not having immediate, tangible outcomes in venture capital as compared to an operator role where products and results are more directly visible.

• The speaker joined Signal Fire after gaining immigration freedom to invest in earlier stages.
• Signal Fire's focus on founder NPS and having a support team, data science platform, and engineering team was attractive.
• The VC fund is built like a tech company, which was a compelling factor for joining.

Yes. So scale venture partners, I got my green card and once I had my immigration freedom, I wanted to invest at the earlier stages. The other compelling factor was the focus on founder, NPS not only verbal, but also in action. Signal Fire has a world class portfolio support team data science platform called Beacon, an engineering team.

The speaker was drawn to Signal Fire due to their earlier stage investment opportunities and their unique approach to VC, which includes a strong emphasis on founder support and being structured like a tech company.

• The speaker's current favorite book is "The Daily Stoic" because it helps with mindfulness and is also beneficial to founders.
• The speaker believes foundational models will become commoditized and that companies delivering the "last mile" will capture most value.
• Christine Yen, CEO of Honeycomb, is seen as an underrated angel in the ecosystem due to her knowledge and know-how.

I think right now is the daily stoic because it helps me slow down and sometimes I post. It's one thing per day. And founders also find it very helpful. It speaks differently to each person reading it.

The "Daily Stoic" is favored for its daily insights that encourage reflection and are applicable to diverse personal experiences, including those of founders.

• Engineers often revert to coding when out of their comfort zone instead of engaging with customers.
• A focus on technology over developer experience can hinder wide adoption.
• There is a misconception that everything in engineering has to be organic.

First, when out of the comfort zone, we fall back into what we know best, which is write more code instead of talking with customers.

This quote emphasizes the tendency of engineers to default to familiar tasks like coding rather than stepping outside their comfort zone to engage with customers, which is crucial for product success.

• The speaker learned to drive a tank from their father, who is a tank mechanic.
• The speaker's family does not fully understand their venture capital work, thinking they fix computers.
• The speaker's biggest miss was Minds db moving faster, and their biggest win was investing in a stealth company using LLMs for devtools.

I grew up playing in the tank. My dad is a tank mechanic. I love the feeling that a tank gives you of basically feeling unstoppable. You can overcome any obstacle.

Growing up with a tank mechanic father, the speaker developed an affinity for tanks and the sense of power and capability they represent.

• The speaker would like VCs to pay more attention to founders and to change the negative reputation associated with VCs.
• The speaker became a VC for immigration reasons but found a passion for working with founders.

I would like for vcs to pay more attention to the founders, listen to them and do more work and maybe change a bit the reputation that a VC has.

The desire to change the venture capital industry focuses on enhancing the relationship between VCs and founders and altering the negative perceptions of VCs.

• Focusing on one's strengths and being honest and helpful are key to success in venture capital.
• Being oneself is appreciated in the venture capital industry, and there is no single right way to be a VC.

Just focusing on your strengths and finding your own style, being honest and trying to be helpful gets you a long way.

This quote underscores the importance of authenticity and leveraging personal strengths in venture capital to build successful relationships and investments.

• The speaker recently invested in Kurtosis because of the founders' deep care for the product, technical rigor, and efforts in building a healthy company culture.
• Avoiding working with difficult people is important to the speaker.

The most recent publicly announced is kurtosis. It containerizes entire distributed systems and allows testing on them. The Ethereum foundation used them to test the merge, for example.

Kurtosis attracted investment due to its technical innovation in containerizing distributed systems and its use by reputable organizations, reflecting the company's potential and the founders' commitment.

• Andopen helps companies deliver better gifts with a platform featuring best-in-class brands.
• Angellist simplifies the operational burden of fund management and supports founders with Angelist Stack.
• Squarespace offers an all-in-one platform for building an online presence, with mobile optimization, email campaigns, and SEO tools.

And open helps companies of all sizes deliver better gifts and they make it super easy.

This quote illustrates the convenience and efficiency provided by Andopen's gifting platform for businesses, reflecting the importance of user-friendly services in the venture ecosystem.