Archive for the ‘Odds and Ends’ Category
Thursday, March 18th, 2010

Business Development Team at Volition Capital

I’m often asked the question “why does Volition have a dedicated business development team? Isn’t business development typically part of everyone’s job at a private equity firm?”

The answer is an easy one. We truly believe having a dedicated BD team, or ‘biz dev’ as we call it, gives us a competitive advantage over other firms. We’re very proud of our network, which runs the gambit from C-level execs at Fortune 100 companies to entrepreneurs at seed stage start-ups. We like to think of it as our own ‘secret sauce’.

Here’s a bit of history as to how our BD team came about. As Fidelity Ventures we had many opportunities to get to know people across Fidelity. But as a traditional, returns-based VC, we also knew that Fidelity might not always be representative of the market and that financial services were only one of the targeted markets of our portfolio companies.  So six years ago, we made a conscious decision to expand our network to outside firms. A year after I joined the company, Don Haile, Fidelity’s then retiring CIO, joined us as a Venture Partner. We were off and running.

So what do we do exactly? Everything we believe to be beneficial to our investors, our portfolio companies and our business partners. We participate in the entire investment life-cycle; sourcing of new deals, pre-deal due diligence and introductions for our portfolio companies to customers, channel partners and acquirers.  All of these efforts are aimed at helping our portfolio companies maximize their value. And in doing so, we’re very mindful of giving back to the relationships we’ve developed over the years. Knowing how difficult it is to gain the mindshare of the people in our network, Don and I share the philosophy to always ‘give more than we get’.

How do we keep our network ‘current’? Several times a year we host forums to educate our audiences and broaden our relationships. In January we hosted a standing-room only CIO Roundtable in Boston, MA. The event ‘Are the Corporate Giants still buying’ was sponsored by the New England Venture Capital Association (NEVCA) and Invest Northern Ireland. Don Haile hosted (or better said, roasted) a panel of renown technologists, which included Chief Technology Officers and senior technology execs from State Street, IBM and JP Morgan Chase. Our guests, who included VCs across New England, as well as C-level executives of local firms and Volition’s local portfolio companies, were treated to an evening of the current thinking of several of the tech industry’s most influential senior execs.

From my point of view, it’s been a terrific six years. I’m personally very excited to continue to work with the Volition team and Don, and to have helped launch Volition Capital earlier this year. I hope this has piqued your curiosity about Volition Capital,  our BD team and gives a bit of a lens into how Volition Capital tries to add value to its portfolio.

Jill

Thursday, February 25th, 2010

Interacting with Associates: A Growth Equity Perspective

There have been a lot of recent conversations in the blogosphere around whether or not it is productive to pitch to associates when raising venture capital.  Most of the views have focused on early stage investing so I wanted to provide a perspective on interacting with early growth equity firms such as Volition.

Let me start with my conclusion: Entrepreneurs and founders looking to raise growth equity shouldn’t hesitate for a minute to engage with associates.

Now let me explain why I believe this to be true:

  • The interest level of a growth equity deal is not measured by its deal source.  Great companies and contacts come from many sources and we respect and encourage all of them.  Clearly some mediums are more effective than others (e.g. bankers who understand our investment focus versus mass emails) but who within our firm actually spoke to the company first never enters into the equation.
  • Every investment professional within our firm is responsible for interacting with founders and entrepreneurs.  The entire team meets on Mondays to discuss interesting companies/ people we interacted with that fit our investment focus.  The discussion revolves around the company’s value proposition, brainstorming around how Volition can best add value and what actionable next steps are appropriate.  “Non-partners” are involved in these discussions as much as partners. In fact, in many cases, it is thanks to the efforts and insights from the “non-partners” that these companies become known.
  • Associates are very aware of – and have a great appreciation for – what deal team would be the best to explore a potential partnership.  Because they interact with the partners on a daily basis, they appreciate particular areas of passion and can provide invaluable advice on how best to present to the partner.  As they taught me in consulting, “knowing your audience” is a key ingredient of a successful presentation.  Associates “know the audience” cold.
  • Associates have a network of contacts at other firms.  And they are social.  It is not uncommon for the following conversation to occur:

Associate at Firm A:  “So what areas are you looking at these days?”

Associate at Firm B:  “I’ve been spending a lot of time looking at data services businesses.”

Associate at Firm A:  “Cool – that’s a great space.  You should check out Company X.   It doesn’t fit in our investment profile, but it’s a great company.”

My opinion is clearly colored by the way we are structured at Volition.  We are a small, cohesive and collaborative team aligned around the common goal of identifying and partnering with great founders to build market leaders.  As such, before entrepreneurs categorically dismiss interacting with associates, I would encourage them to dig a little deeper on the culture and structure of the firm.

Geraldine