In this episode of the "20 minutes VC," host Harry Stebings interviews Martin Mino, an early-stage investor at Index Ventures in London, who has been involved in transactions with companies like Deliveroo, Algolia, and Swiftkey. Mino shares his journey from co-founding a beauty subscription business to becoming a venture capitalist, emphasizing the value of understanding the entrepreneurial experience and the importance of empathy for founders. He discusses his deal-sourcing strategies, focusing on building local networks and maintaining relationships with founders to identify potential investments. Mino also touches on the European tech ecosystem's growth, the role of previous founders reinvesting in the community, and the challenges of the exit market in Europe. Despite these challenges, he remains optimistic about the European market, citing numerous successful exits and the increasing number of large-scale companies.
"And joining us today is Martin Mino, early stage investor at Index Ventures in London, where he focuses on SaaS marketplaces and mobile. Martin handles many of index's investments, including the likes of Deliveroo, Algolia, Blah blah, Car, Swiftkey and many more incredible companies."
This quote introduces Martin Mino as a significant figure in venture capital, highlighting his investment focus and notable companies he has been involved with.
"So I guess everyone is a bit of a mix of both parents and I think I'm no exception to the rule."
Martin attributes his interest in venture capital to the blend of his parents' entrepreneurial and intellectual characteristics, which he sees as reflective of the VC role.
"I think the most important thing is really that you get to know and see the world through the eyes of an entrepreneur, being on the other side of the table."
This quote underscores the significance of understanding the entrepreneur's perspective and the value of experiencing the pressures and risks they face, which is crucial for a venture capitalist.
"I don't really agree with his view and I think the evidence kind of proves the contrary."
Martin challenges the traditional view of venture capital as a late-career move, suggesting that many successful VCs have proven that starting early in venture capital can lead to success.## Angel Investing vs. Venture Capital
"So what's important to him as an angel is very different from what's important as a VC."
This quote highlights the different priorities between angel investors and venture capitalists, emphasizing their distinct roles and the scope of their involvement in a company's growth.
"But I think as a VC you have to take a much longer view."
The quote emphasizes the long-term commitment and broader perspective required in venture capital as opposed to the more focused and short-term involvement of an angel investor.
"At index we have both a thematic and a geographical approach, especially in Europe, because the european ecosystem is still quite fragmented."
This quote explains Index Ventures' dual strategy in deal sourcing, which is tailored to the unique characteristics of the European startup ecosystem.
"So when they felt ready to raise a gross round, then we're kind of a natural partner for them."
The quote illustrates the importance of maintaining relationships with growth-stage companies to become their preferred partner for future funding rounds.
"I think there is a compatibility part. I think we sometimes some of us here have a rule of what we call the life's too short category."
This quote reflects the informal approach at Index Ventures to assessing founders, where personal compatibility and the potential for a positive working relationship are considered.
"In general, I think the thing you really want to look for is how is not really your relationship with them necessarily. It's more their relationship with their team and with the people they work."
The quote suggests that a founder's ability to maintain healthy relationships with their team is a more crucial factor for investment consideration than the founder's relationship with the VC.## CEO's Role in Talent Acquisition
"At the end of the day, it's just being able to hire the very best people. That's what CEOs spend a lot of time doing."
This quote emphasizes the primary responsibility of CEOs to recruit top talent, highlighting the importance of this task in their overall role.
"I think there are many examples and counterexamples of that. So I don't think you can have a hard feel."
Martin Mino suggests that whether founders should remain at the helm throughout a company's lifecycle cannot be generalized and depends on individual circumstances.
"Your downside is always limited to the amount you're investing, while your upside is unlimited by definition."
Martin Mino explains the asymmetry between risk and reward in venture capital, indicating that the potential for high returns justifies taking risks on high valuations at early stages.
"That's the FOMO, and there are so few of them. When you find one, you're just like, you want to be part of that journey."
Martin Mino describes FOMO as a driving force in venture capital that motivates him to invest in companies he believes have extraordinary potential.
"We see a lot of really good companies and we see them coming from everywhere, which was kind of initial thesis at index and which is really happening now."
Martin Mino acknowledges the growth and diversity of the European tech ecosystem, with promising companies arising from various locations, not just the main hubs.## French Tech Ecosystem Growth
You got people like Xavier Niel who are investing massive amounts into the ecosystem.
This quote emphasizes the significant investment by prominent figures like Xavier Niel into the French tech ecosystem, indicating strong growth and support for startups.
So there are a bunch of exits that happened in the past, in the past five to ten years, and those folks are reinvesting a lot, their time and their money.
The quote points out the trend of successful entrepreneurs reinvesting their capital and expertise back into the ecosystem, which is fostering a new wave of growth and innovation.
Exalid was a really strong tech product, but stayed pretty much very French and a bit academic, while Allegoria was kind of in the same space, went straight away to YC and had set up an office in San Francisco.
This comparison between Exalid and Allegoria illustrates the evolution of French startups from local, academic-focused ventures to global players with a presence in key tech hubs like Silicon Valley.
We've had a lot, right? If you think about just it, Skype, Criteo, Zendesk King, all of the ones that are coming in the Spotify von Privy showroom, preve the Zalando.
Martin Mino is highlighting the numerous successful billion-dollar exits in Europe, suggesting that the exit ecosystem is robust for large-scale startups.
I think the IPO market in Europe is not extremely strong because there is a lack of culture around tech in those places.
Here, Martin Mino points out the weakness of the European IPO market for tech companies, attributing it to a cultural gap in understanding and valuing technology within financial markets.
I love the book I read recently about the life of Tim Leary called I have America surrounded.
Martin Mino expresses his fascination with Tim Leary's life story, which he finds incredibly disruptive and a source of inspiration for entrepreneurs.
And admire, there are quite a few, but I think the one that's been shaping mine and probably a lot of people's investment theories is obviously Fred Wilson.
He acknowledges Fred Wilson's influence on his own and others' investment philosophies, highlighting Wilson's intelligence, dedication, and consistency in the venture capital industry.
I like Benedict even's weekly newsletter on mobile. I read that a lot.
Mino finds value in Benedict Evans' mobile-focused insights, which aid him in making informed decisions for tech investments.
It's a space we love. It's got all of the kind of network effects and platform characteristics that we really like.
This quote reveals Martin Mino's investment criteria, which include network effects and platform characteristics, as well as his appreciation for teams that can achieve early milestones with limited resources.