Interview, Fireside Chat
Rob Lacher: How I Scaled to $600M AUM; Hiring Tips for VCs; Venture Capital in Europe vs USA | E999
- European family businesses, representing 90% of companies with high profitability and global supply chain ownership, are predicted to unite with venture capital to form a "Google"-like entity, unlocking alpha knowledge in verticals and potentially creating a smarter, less VC-dependent ecosystem by 2028.
- A unified entity combining domain knowledge of family entrepreneurs with capital aims to support the next generation of B2B entrepreneurs, with the expectation that this approach could elevate European B2B companies to global market leadership similar to UiPath or Seronis.
- The speaker intends to pursue an entrepreneurial-in-venture capital path for 20 to 30 years, planning to build "Visionaries" to endure for 30 to 40 years with a growth fund size of $150 million to accommodate increasing initial check sizes.
- By 2028, the European ecosystem is expected to experience a disruption driven by a new generation of billionaire B2B founders reinvesting capital alongside family entrepreneurs, creating a new dynamic for backing entrepreneurs.
- Investment strategy will focus on pre-seed, seed, and Series B/C stages rather than Series A, which is described as a "bloody red ocean," utilizing a blended portfolio approach maintaining 10% to 15% ownership for 80% of seed deals.
- The growth fund, targeting early Series B or late Series A companies entered below $100 million valuations, plans to issue checks of $5 to $10 million to invest in location alongside the company.
- Co-entrepreneurs within the firm are expected to define the firm's evolution by 2028, potentially resulting in a seed fund, an early growth fund, a growth fund taking a lead, or a pre-IPO fund.
- A new value system for the Western economy is deemed necessary to move away from "economic growth" as the primary north star, necessitating a reinvented system to address overdevelopment and climate challenges.
- Fund management success is projected to rely on young, hyper-intelligent team members rather than experienced VCs, as the latter are believed to produce only an average index of returns.
- Founders are cautioned against oversizing seed rounds, as failure to raise capital healthily may result in down rounds or stagnation at high valuations such as $500 million.
- Increasingly prominent liquidity opportunities and secondary sales are anticipated in the coming years, creating potential misalignment between VCs needing DPI and founders facing pressure to sell suboptimally.
- High-valuation companies in a momentum market may struggle to raise additional funding if they fail to meet growth expectations within one to two years.
- Investors will likely reject founders receiving $3 million from U.S. funds without deep references, as these targets are viewed as lacking long-term thinking and meaningful partnership potential.
- Multi-stage funds are expected to stand aside from "messy middle" companies rated eight or 7.5 out of ten unless they lead the next round aggressively.
- Two-thirds of founders with U.S. term sheets are expected to prefer European seed funds to keep Series A options open, driven by independent U.S. era founders seeking specific strategic advantages.
- The next great venture firm is predicted to emerge at the intersection of venture capital and media to leverage data for better investing, rather than operating solely as a media company.
- A shift in work-life balance is forewarned, where persistently applying work-focused habits to private life can lead to loneliness, suggesting prioritization of career in the 20s for future family time.
- Venture capitalists reducing work intensity, such as spending time in Southern France or working three days a week, risk being perceived as insufficiently hungry or non-partnership oriented, diminishing their effectiveness.