In today's capital market, things move faster, rounds are bigger, and new funds emerge each day. While founders struggle to tell investors apart, VCs are scrambling to stand out with an increasingly commoditized product: money. From memes to 'value-added services', what matters beyond money? To answer that, first, find out what to ask. Then dare to ask it.

1. Madeline Lawrence
Associate
Peak
@madelinelawren
From Memes to Value-add:
What Matters 'Beyond Money' and How to Find
It

2. These are unprecedented times - literally.

3. Welcoming a new ‘normal’ in the capital markets
93% of seed funds in Europe reported increased intensity last year (vs 57% between 2019-2020)
Consider: international entrants, new players, growing funds
Leading to:
• Valuation inflation

4. Welcoming a new ‘normal’ in the capital markets
Fast money. Big tickets.

5. Huge funds.
Welcoming a new ‘normal’ in the capital markets

6. Let’s find out.
How competitive is it, really?

7. Stealth mode
How competitive is it, really?

8. Stealth mode
Activated
How competitive is it, really?

9. First Step: Test the waters. Lure in the VCs.

10. Testing the VC waters.
Welcome to:
My 72 hours as a
Stealth founder

11. And it worked
…a little too well.

12. And it worked
…a little too well.
*

13. And it worked
…a little too well.

14. And it worked
…a little too well.

15. What’s the point?
Ok Madeline,

16. It’s busy out there.

17. Of course, we can’t ignore the last few months…

18. Money, Money,
Money.
But still:

19. How do you decide?
With investors knocking on
your door or lurking on the corner.

20. • An overarching
personal & professional
goal.
• Founder Guides to
Venture Capital
Guides to help
founders navigate this
black-box industry

22. But a logo & ticket size only tells you so much.

23. To founders (…and to each other), we’re still largely “all the same”
We’re backing category leaders, ‘game changers’, innovators, visionaries.
We’re catalysts, partners for the long-haul. Shifting paradigms.
…….disruption…
But a logo & ticket size only tells you so much.

25. It’s hard.

26. Capital is (becoming)
commoditized.

27. Capital is (becoming)
commoditized.
(& we’re freaking the f*ck out)

28. We know this.

29. We know this.
(& we’re still freaking the f*ck out)

30. What is there
besides money?

31. We VC's are scrambling to differentiate.

32. Some tactics investors
are rolling out to stay
‘competitive’ and
unique in 2022
We VC's are scrambling to differentiate.
Source: State of European Tech, Atomico, 2021

33. Even the best of us have to stay relevant.

34. And founders are getting picky.

35. What investors think
‘win deals’ vs what
founders look for.
And founders are getting picky.
Source: State of European Tech, Atomico, 2021

36. Founders value
investors who
share their vision.
…investors don’t
care.
But we’re not quite seeing eye-to-eye.
Source: State of European Tech, Atomico, 2021

37. VCs are pushing
‘value-added
services and
capabilities’
…a topic that
96% of founders
don’t value.
But we’re not quite seeing eye-to-eye.
Source: State of European Tech, Atomico, 2021

38. How do you see beyond
money?

39. • Speed
• Portfolio success
• Portfolio synergy
• “Value-adding” services
• Expertise
• Brand and marketing
• Chemistry & personal relationship…
Let’s skip what you already know.
And dare to go deeper.

40. This is an
opaque industry.

41. This is an
opaque industry.
With steep power &
information asymmetry

42. You have to know what
to ask
In order to see beyond money (and marketing),

43. and have the courage
to ask it.
In order to see beyond money (and marketing),

44. 1.
Who is your boss?

45. • What: We get money from someone / somewhere (government, corporates,
institutions, family offices, individuals). Investors almost never fully disclose
their LPs (and likely never will).
• Why: This can impact power dynamics, decision making, risk tolerance,
culture, and more. Information rights + mixed incentives = can lead to conflicts
of interest. Money has morals.
1) LP Structure: Who is your boss?

46. • What: We get money from someone / somewhere (government, corporates,
institutions, family offices, individuals). Investors almost never fully disclose
their LPs (and likely never will).
• Why: This can impact power dynamics, decision making, risk tolerance,
culture, and more. Information rights + mixed incentives = can lead to conflicts
of interest. Money has morals.
• How: Who are your LPs? What is their role? How diverse are they? What is
the fund structure? Are there any conflicting investments? What level of
information do you provide them? Be critical and get to the real story.
1) LP Structure: Who is your boss?

47. 1) LP Structure: is it so hard to imagine?

48. 2.
Whats in it for you?

49. • What: You may know general 2/20 VC structure, but what does it really
look like in practice?
• Why: Venture Capital is a long-haul partnership. Incentive alignment is
essential to steering the company ahead. Knowing who you’re working
with and their buy-in is…logical (just like investors asking for your your
cap-table & SHA).
2) Incentive structure: What’s in it for you?

50. • What: You may know general 2/20 VC structure, but what does it really
look like in practice?
• Why: Venture Capital is a long-haul partnership. Incentive alignment is
essential to steering the company ahead. Knowing who you’re working
with and their buy-in is…logical (just like investors asking for your your
cap-table & SHA).
• How/Ask: Dare to flip the scrip around. What is your ‘skin in the game’ /
Did you personally invest in the fund? What is your ‘piece of the pie’ / Do
you participate in the carry? What is your vesting period?
2) Incentive structure: What’s in it for you?

51. 3.
What’s your
business model?

52. • What: We’re making money into more money. Our model is driven by outliers
(‘high risk / high return’). We have a limited amount of time & money to realize
returns.
• Why: Funds have their own assumptions informing portfolio & investment
strategy. This decides resource allocation, sensitivity to valuation / ownership
targets, timeline to exit, dependency on other investors, and more.
3) Incentive structure: What’s your business model?

53. • What: We’re making money into more money. Our model is driven by outliers
(‘high risk / high return’). We have a limited amount of time & money to realize
returns.
• Why: Funds have their own assumptions informing portfolio & investment
strategy. This decides resource allocation, sensitivity to valuation / ownership
targets, timeline to exit, dependency on other investors, and more.
• How/Ask: How many investments have you done / will you do from this fund?
What is the life cycle of the fund? What is your risk & return profile? What are
your key assumptions (eg # write offs)? What drove your past performance?
…What is your past performance?
3) Incentive structure: What’s your business model?

54. 3.
How do you
celebrate?

55. • What: You know personal chemistry, but what about the wider team dynamic
& structure?
3) Fund culture: “it’s all about the team”

56. • What: You know personal chemistry, but what about the wider team dynamic
& structure?
• How: Examine hierarchy and bureaucracy. Look at employee turnover and
wellbeing. Examine the team member profiles - especially the new hires. Ask
‘how do you celebrate’? What are your OKRs? What is your most important
metric (and ask again, ‘what is it really?’). What’s your hiring roadmap?
• Tips: You can tell a lot by a team page (Crisp white shirts? Ordered by seniority? Golf
handicap as a fun fact?) and don't forget the shoes!
3) Fund culture: “it’s all about the team”

57. You may not get
answers.

58. Let’s wrap this up.

59. This is an imbalanced and opaque industry…
1. It’s hard to tell investors apart and even harder to
understand them.
2. VCs are scrambling to differentiate and create a
competitive offering in an increasingly commoditized space:
money.
3. To see beyond money, dare to ask critical questions about
ownership, compensation, incentives, priorities, and
culture.
My Top Takeaways

60. 4. …and don’t forget about their shoes ;)
My Top Takeaways

61. THANK YOU

62. Join us for the The Diversity,
Inclusion & Equality Brunch
11:45 AM - 12:30 PM
Speakers We Love: Stage B
P2: Banquet Hall