On building a VC on the back of a strong angel community

Fundraising, Trust Building, and the Power of Community and Feedback.

Andreas Munk Holm✌️

Dec 30, 2023

Transcript

No transcript...

Today we are welcoming Bastian Larsen, Founding Partner of BlackWood Ventures, a pan-European early-stage VC fund focused on Fintech, Web 3.0 and Cleantech. Blackwood has a value-creating approach that leverages AI to minimize biases and a proprietary pan-European network of over 1200 angels. BlackWood had a $10m first closing in early April this year, with a $50m target. As of today, BlackWood has made investments across 5 countries in just 6 months, counting companies like Qaptis, Trips and Fingreen AI.

We wanted to bring Bastian on because BlackWood, just as ourselves, build on a strong angel community, so for this episode, that’s where we focus 👀

Listen on Spotify/Apple and scroll on ⏬ for the time stamps & core learnings

This episode is brought to you in partnership with… Apiday

Apiday is the leading, all-in-one ESG platform for GPs. Apiday's philosophy is that ESG for portfolio companies must be easy and value-adding, making you a partner to your portcos, not adding reporting burdens. Impress your LPs and see why 1,000+ portcos, leading Article 9 funds and $100 billion of AUM all trust Apiday to manage ESG.

Take a free product tour at apiday.com

Chapters:

00:02:54 - From London to New York: Bastian’s Journey into VC
00:04:17 - Building the European VC Market
00:05:37 - A Pivotal Moment in Venture Capital
00:06:57 - The Power of a Small Positive Impact
00:08:22 - The Lack of European Growth Stage Funds
00:09:41 - Launching Growth Stage Funds
00:11:03 - Building Blackwood and Overcoming Hurdles
00:12:15 - Leveraging the Power of Angel Networks
00:13:30 - Building Relationships with Angels
00:14:41 - The Importance of Angel Networks in Startup Investing
00:16:00 - The Importance of Feedback and Strategic Investments
00:17:16 - Leveraging the Network for Co-investment and Cash Injection
00:18:33 - Investing and Dividing Deals
00:19:54 - Monetization and Scaling Up
00:21:15 - Personalized Approach in Angel Investing
00:22:52 - Jacob Kilgard: A Backer of Blackwood
00:24:10 - Fundraising success and trust in our network
00:25:28 - Staying Curious and Building Relationships
00:26:46 - Building a Common Vision
00:28:01 - Comparing Opposites and Writing Children's Books
00:29:22 - Fundraising and Leveraging Networks in the VC Industry
00:30:43 - Drop Us a Review and Join the Blackwood Gang

Q: Give a shout-out to someone you love in the industry

I've decided to focus on an LP, who was also one of the early backers of Blackwood. His name is Jacob Kierkegaard. He has managed a multifamily office with over 2 billion euros in Luxembourg, handling the wealth of some of the wealthiest individuals in the Nordics for more than 35 years. I actually worked for him in Luxembourg over a decade ago. After initially declining his offer due to opportunities at BlackRock, he was the first person I contacted when I decided to establish Blackwood. I shared with him my vision of creating something truly unique, knowing it would be a significant undertaking.
Jacob was on board from the start. He had observed my career progress and believed in my ability to build something significant. His early investment in Blackwood was a major boost, offering not just financial support but also access to his extensive network. This allowed me to concentrate on the detailed aspects of our work.
When we began fundraising for our first fund, I was hopeful Jacob would make some key introductions, which he did. This was instrumental in our ability to raise 10 million dollars in just four months earlier this year, especially in a challenging fundraising climate. The success can be attributed to the time spent developing something unique and the strength of our network. Jacob's decision to invest a substantial amount from the onset served as a significant endorsement, reflecting his trust in our venture.

Q: What Are Your Three Key Learnings In Venture?

Stay curious:
Embracing curiosity across finance, venture capital, and art has driven continuous learning and adaptability.
Living in 10 countries has broadened my perspectives and provided me with invaluable experience
Build meaningful relationships:
Cultivating genuine connections in professional and artistic realms has brought support and collaborative opportunities.
Nurturing relationships has created a diverse network for partnerships and new ventures.
Work towards a common goal:
Leading a VC fund in Europe has developed my ability to align teams towards shared objectives.
Collaborating with stakeholders from various countries and industries has yielded impactful outcomes.

Q: What advice would you give your 10 year younger self?

Build strong relationships and networks. Cultivate meaningful connections with people who inspire and support you. Surround yourself with a diverse network of mentors, peers, and friends who can offer guidance, collaboration, and valuable insights. Collaboration and support from others can be a catalyst for personal and professional growth.

Q: What are your top tips for emerging VCs across Europe who are fundraising?

Define a compelling investment thesis that differentiates you. There are so many new funds being launched every year now, that without a unique approach it will be very tough to fundraise. Regarding this point, I would encourage all new emerging VCs to not be afraid to leverage your network. Now is the time to ask for favors, which can help you connect with potential investors.

Q: What’s the most counterintuitive thing you’ve learned in venture?

Sometimes the most successful investments come from the least obvious or expected sources. It's easy to fall into the trap of focusing on the well-known startups or following the crowd. However, I've found that significant opportunities can arise from overlooked markets, unconventional founders, or underestimated ideas. It highlights the importance of keeping an open mind, conducting thorough due diligence, and being willing to take calculated risks on potential game-changers that may not fit the traditional mold. Venture capital requires a balance of intuition, strategic thinking, and a willingness to challenge conventional wisdom to uncover hidden gems with tremendous growth potential.