How to make your company stand out in a competitive market, Latitude59 Kenya Edition, and more
Learn directly from Oxx Ventures, Pale Blue Dot, Concentric VC and other leading European VCs.
Today's email is packed with great insights. To kick things off, we’ve got you the following:
And then we’ve got some new submissions on the community insights platform we wanna share with you & new upcoming workshops inside the EUVC community.
Oxx's Mikael Johnsson on how to make a company stand out in a competitive market & create sustainable competitive advantage
In this episode of the EUVC podcast, Andreas discusses with Mikael Johnsson, co-founder and General Partner of Oxx.
Andreas and Mikael discuss the key strategies and insights that have shaped Oxx as a leading player in the European B2B SaaS investment landscape. Mikael shares his extensive 24-year journey in venture capital, highlighting the evolution of his investment philosophy and the experiences that have driven Oxx’s unique approach to backing scale-up stage companies.
Oxx’s second fund, totaling $190M, underscores the firm’s commitment to supporting B2B SaaS innovators across Europe and Israel. With a team of six in Stockholm and nine in London, Oxx maintains a pan-European reach, enabling it to stay closely connected to the pulse of regional tech ecosystems. The firm’s notable investments, including Funnel, Gravitee, and SOCRadar, exemplify Oxx’s focus on high-potential SaaS businesses with the ambition and capability to scale internationally.
Watch it here or add it to your episodes on Apple or Spotify 🎧 chapters for easy navigation available on the Spotify/Apple episode.
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✍️ Show notes
Journey in venture
My journey into venture started already at university with a course in Management Information Systems dealing with how software could be used in clever ways to create innovative products and transform business processes. I was really fascinated by technology’s potential - especially when it came to software - to drive innovation and create new businesses.
As I entered the workforce in the late 90s there was a deluge of start-ups that came onto the scene during the dotcom boom and bust era. While the exuberance of the time eventually evaporated, there was real concrete evidence of how start-ups innovated and disrupted incumbent companies and markets by building great software. I then decided that the best way to capitalise on my interest and fascination would probably be in a start-up setting.
However, I didn’t have a great product idea, nor was I a skilled coder or experienced product or marketing and sales person, so I thought the best way to learn how to build a great startup would be to see lots of them, and develop pattern recognition in terms of which companies make it and which don’t.
I went on to become an analyst at a large Nordic venture firm, thinking I’d give it three years and then I’d be ready to launch my own business based on what I’d learned. Things didn’t quite pan out that way and I’ve now spent 23 years as a venture investor in B2B software and as of the last 10-15 years, that’s been all SaaS. I did eventually get to build my own business however, as we launched Oxx as a new firm on the scene in 2018, but not in the way I had expected upon entering the VC world in the year 2000.
A pivotal moment in your life
I started my career as a VC tech investor in the year 2000 - signing my employment contract on the very day that the Nasdaq index peaked - and the first 3-4 years of my career was spent in the aftermath of the dotcom bust.
That means I quickly learned that making investments is a very limited part of the job of being a VC investor - the really hard work is developing companies and getting them to a successful exit. It also means I developed a perspective on the cyclical nature of markets and how understanding these cycles is really critical to building great companies and generating strong investment returns.
Taking a stance
There’s too few European growth funds.
I don’t think there’s too few growth stage firms in Europe and nor do I think there's too few early stage firms. There’s a plethora of firms and money at each end of the spectrum. The challenge lies somewhere in between where companies have established product market fit, but haven’t yet built a scalable and predictable go-to-market machine to reach what we call Go-To-Market Fit.
Firms that find themselves at this stage need capital for scaling but can’t yet deploy the large amounts of money that growth funds want to invest in in an effective and efficient manner. Instead they need more nimble capital for building and testing the platform for long-term sustainable growth, and the capital required for this also goes beyond what the early-stage specialist firms can invest.
That means there’s a need for specialist investors who plug the gap between the early and the growth stages, both in terms of risk-appetite and capital amounts invested, but also in terms of understanding, expertise, and ability to effectively support these companies as they embark on building a platform for long-term sustainable growth.
We could also talk about the state of the VC market and where we are heading. It’s clear that the years of exuberance and excess are behind us and that we’re returning to an age of “smart money”. This means there will be significantly less money invested into venture as an asset class, my personal guesstimate is we’ll see a ⅔ drop compared to the height of the market, which would put us more in line with the long term median amounts invested.
This also means there’s going to be a really tough culling of both startups and VC firms. Way too many companies have been funded over the last few years as a result of the availability of cheap capital. Many of these companies will not be able to raise more money or turn their business around to profitability. Some will be consolidated through M&A, which is going to increase dramatically over the next 6-12 months, but many businesses will go under or fade away into oblivion.
This is equally true for VC firms, many of which have been established over the last couple of years and therefore lack a track record so will not be able to raise another fund.
Deep dive on positioning and how to make a company stand out.
I’m passionate about **positioning - i.e., how to make a company stand out in a competitive market and create sustainable competitive advantage.** The average team we meet hasn’t given this anywhere near enough thought, and yet it’s probably the most fundamental strategy piece for building a really large software company.
If you’ve found product market fit and want to build out your go-to-market, positioning should be the first stop on that journey. Product is an important aspect here, but too many teams think too narrowly about positioning and end up in a feature pissing contest that isn’t necessarily creating much value. The key thing is to focus on unique differentiated value, which can be multifaceted across product, price, technology, go-to-market, ICP, use case, vertical, eco-system, channels etc.
Shout out
There are lots of great people in our industry that I’ve had the pleasure of working with, but if you put a gun to my head I would give a shout out to Suranga Chandratillake at Balderton.
We have a couple of joint investments and he really is an investor that any founder should want to have by their side. He is very thoughtful and doesn’t talk excessively, but when he says something, he always brings a valuable perspective and often catches an angle that others have missed.
3 biggest learnings from last 10 years of life
Rome wasn’t built in a day - it takes time, grit and a hell-bent passion to build a great company. All successful companies go through tough phases in their development and most don’t come flying out of the gates in the early stages.
Great people cures all ills - mediocre people will kill any great opportunity
For me, building a great company is rarely a question of what to do - it’s much more about how to get everyone aligned on how to do it. Therefore, establishing trust, alignment and partnership with entrepreneurs and teams is key to being a really good VC investor.
If you were stranded on a desert island, what book, disc and luxury item would you bring?
If I’m on a desert island I guess Robinson Crusoe would be a good choice. Or maybe Ulysses by James Joyce, I’ve tried to read that book three or four times but never made it past the first chapter. I should be bored enough and have sufficient time to break that down on a desert island.
I’d bring my iPhone with all the Spotify playlists (I know that’s cheating). The album that would get played most frequently is probably something by U2 or the Police.
My luxury item would be a starlink modem fitted with a solar powered battery.
Advice for your 10 year younger self.
Actively and deliberately seek out risk (with a commensurate return of course) when you’re young and don’t have any commitments
Don’t sweat it - things tend to work out in the end.
Most people want to do well and do the best they can.
Tips & tricks from emerging European VCs
Never raise a first fund! :)
What is your unique differentiated value? If you can’t articulate that beyond “motherhood and apple pie”, don’t raise a fund
Start small and with a laser focus.
A counterintuitive thing learned in venture
Entrepreneurs and investors sometimes become the prisoner of their own success, which manifests in trying to deploy pattern recognition in an area where their “algorithm” isn’t really applicable.
Latitude59 Kenya Edition: A Premier Investor Experience Awaits
Guest post by Kai Isand, Program Manager & Kenya Investor Relations at Latitude59. | Originally published on Latitude59.
Latitude59, the flagship startup tech conference from Estonia, is set to make waves in Nairobi as it showcases the second Kenya edition—a must-attend experience for everyone eager to tap into Africa's vibrant markets. As Kenya emerges as the gateway to the African startup ecosystem, the team at Latitude59 has put together a special invite for the international investor community.
This is your chance to learn about the unique story of the African startup ecosystem, meet the next hotshot entrepreneurs from the continent and enjoy extra special networking opportunities with local and international investors. The Investor Experience is a 3-day immersive event in Nairobi including an Investor Day, Conference Day and a Networking Safari. Organised together with SMART Africa Alliance, which is the key organisation leading and developing the ICT agenda in its 39 member countries, it will be a great way to mix and mingle with the investor community from across the continent.
There is a special code for the EUVC members - L59KENYAEUVC15 for a 15% discount.
Read more about the experience below.
Kenya has emerged as a dynamic hub for startups, showcasing a wave of creativity and entrepreneurial energy that’s catching the attention of investors from all around the globe. As we are preparing to welcome participants to our second Kenya Edition, we have designed a unique experience for international investors who would like to join us to explore the potential of one of Africa’s most promising markets.
Your VIP Pass to Africa’s Growth Story
At Latitude59 Kenya, we’ve crafted a tailor-made experience designed specifically for you, the investors who are ready to explore and invest in the next startup hotspot. Over the course of three immersive days, you’ll engage with a vibrant community of local and international innovators, all while enjoying a bespoke program that maximizes your networking and learning opportunities.
What’s on the Agenda?
Day 1: Investor Day at Tigoni Tea Plantation
Kick off your experience at the stunning Tigoni Tea Plantation, where you’ll meet fellow investors and engage in insightful discussions about the local tech landscape, all powered by Smart Africa. The day culminates in an exclusive reception and VIP dinner, featuring special guests and key figures from the East African tech community.
Day 2: Main Conference Day
Join us at the Latitude59 conference, where you’ll participate in workshops, roundtable discussions with policymakers, and the Investor Lounge— an ideal space for one-on-one meetings. Don’t miss the chance to enjoy our official afterparty, where connections continue to flourish!
Day 3: Networking Safari
Wrap up your adventure with a unique Networking Safari. Spend the morning at Nairobi National Park, enjoy a joint lunch, and visit the Giraffe Sanctuary, all while building relationships in a relaxed and inspiring setting.
Building a Global Village
“The first Kenya edition of Latitude59 was even bigger and more successful than we dared to hope. And this is just the beginning of our bigger vision of building a Global Village, bringing diverse communities together to make the tech world more human.” said Liisi Org, CEO of Latitude59. “Working on the second edition here in Kenya, Nairobi, our team is even more excited to create an amazing experience and invite our global community to join us.”
Join the Movement
This is more than just a conference; it’s your gateway to Africa’s incredible startup scene. With a custom list of participating startups, exclusive workshops, and the thrilling L59 Pitch Competition finals, you’ll discover the potential of tomorrow’s industry leaders right here in Kenya.
“After my first visit to Kenya last year, I was blown away by the energy and creativity of the startup community here. I can’t wait to welcome the international investor community to explore this vibrant ecosystem with us,” says Kai Isand, Investor Experience Manager for Latitude59 Kenya Edition. “Join us to uncover the opportunities that Kenya has to offer!”
For registration and more information about the event, go here!
Last chance to have your say on Destination USA guide by Index Ventures
🔍 Survey | Expanding to US? Share your insights for Destination USA guide
by Index Ventures
Why it matters: Index Ventures would like to include your experiences in the updated edition of our popular book Destination USA: Expanding to the US. Whether you've successfully expanded to the US, are in the midst of doing so, or even if things didn’t go as planned, your experiences are invaluable. By sharing your insights, you’ll be helping other founders as they embark on their own US journey.
If you're expanding to the US from another country, complete this survey by November 5th.
Building bridges between business and nature
Guest post by Cecile Bussy, Head of Brand and Communications at Pale Blue Dot. | Originally published on Pale Blue Dot.
We will not make progress on climate change if we don’t act on nature, according to Johan Rockström, Director of the Potsdam Institute for Climate Impact Research. At Pale blue dot, we have been using planetary boundaries as a framework to guide our investment decisions. Nature, freshwater availability and biodiversity protection are crucial to our future.
It’s simply smart business, as 85% of the world’s largest companies that make up S&P Global 1200 significantly depend on nature across their direct operations. Industries such as food and beverage, and agriculture jump into mind when thinking of nature dependencies. But it goes beyond these: 50% of the global GDP is directly dependent on nature according to the World Economic Forum, including the chemical, pharmaceutical and automotive industries.
Europe’s Unfair Advantages
Guest post by Kjartan Rist, Founding Partner of Concentric VC. | Originally published on Forbes.
In the eyes of many, Europe lacks the entrepreneurial spirit and innovation drive that has come to define Silicon Valley and the broader US start-up ecosystem. The common narrative suggests that European founders are less driven, that venture capital in Europe lags far behind, and that the continent’s fragmented markets and complicated regulatory environments stifle creativity and innovation. Add to this the economic downturns of recent years, and you would be forgiven for assuming Europe is a less-than-favourable environment for start-ups and venture capital.
But that view ignores a deeper truth. While Europe may indeed have some hurdles to overcome, it also possesses several unique advantages that make it a formidable region for entrepreneurial and venture capital success. As Jyri Engeström, a Finnish venture capitalist with more than a decade of experience from Silicon Valley and now a partner at Lifeline Ventures in Helsinki, puts it, Europe has some "unfair advantages." It’s time we take a closer look at these advantages that could foster a rethink of the European start-up narrative.
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🤗 Join the EUVC Community
Looking for niche, high-quality experiences that prioritize depth over breadth? Consider joining our community focused on delivering content tailored to the experienced VC. Here’s what you can look forward to as a member:
Exclusive Access & Discounts: Priority access to masterclasses with leading GPs & LPs, available on a first-come, first-served basis.
On-Demand Content: A platform with sessions you can access anytime, anywhere complete with presentations, templates and other resources.
Interactive AMAs: Engage directly with top GPs and LPs in exclusive small group sessions — entirely free for community members.
🧠 Upcoming EUVC masterclasses
Advanced small-group sessions that take you from good to great. Lectured by leading GPs, LPs & Experts.
✍🏻 EUVC Masterclass | Marketing & VC Fund Narrative
Your brand is everything. It’s what sets you apart, helps you win the best deals, attract LPs, and ultimately drive your growth. For emerging fund managers, building a credible brand and establishing the right marketing foundations early on are game-changers. Yet, many don’t know where to begin.
Your fund’s narrative is what makes the difference between an LP glancing at your deck or deciding they’re ready to write a check. It’s your brand that makes LPs feel confident they’re partnering with someone who knows how to make magic happen.
We’re planning a masterclass on building strong marketing foundations with a top industry leader. If enough people show interest, we’ll make it happen.
✍🏻 EUVC Masterclass | Benchmarketing for GPs & LPs
Join us for an in-depth session on VC Fund Terms & KPIs: Mastering Metrics for Fund Success. This workshop will focus on the key performance indicators (KPIs) that drive VC fund performance and the critical timing for measuring these metrics. You’ll gain insights into what matters most to Limited Partners (LPs) and what General Partners (GPs) should focus on internally for effective fund management.
The session will also cover how to set up a comprehensive dashboard, including portfolio tracking, to streamline your reporting and ensure your fund’s success.
Special offer: Join the EUVC Community for 25€ per month and get 100€ off while enjoying access to on-demand masterclasses, tools & templates and monthly AMAs with leading GPs, LPs & experts.
🗓️ The VC Conferences You Can’t Miss
There are some events that just have to be on the calendar. Here’s our list, hit us up if you’re going, we’d love to meet!
culttech summit | 📆 5-6 November | Vienna, Austria
GoWest | 📆 28 - 30 January 2025 | 🌍 Gothenburg, Sweden
GITEX Europe 2025 | 📆 23 - 25 May 2025 | 🌍 Berlin, Germany
Didn't know Andreas was such a fan of the CSV framework and Michael Porter! Curious to know your thoughts on "stakeholders capitalism" supported by THE WEF