On marketing in venture capital with Natasha Lytton, Vincent Touati-Tomas and Jeroen van Dornik

A deep dive discussion on how to build a brand as VC firm, how to have a strong positioning, and what trully matters in the process, with key tips & tricks from Europe's leading VC firms.

May 26, 2024

Transcript

Welcome back to another episode of the EUVC podcast. Today, we are discussing all things marketing in venture capital, such as:

narrative development
thesis development
measuring marketing activities
content creation for a VC firm
positioning and its role in fund strategy
AI impact on marketing & future trends in 2024

Our guests for this talk are Natasha Lytton, Director at Seedcamp, Vincent Touati-Tomas, Head of Marketing at Northzone, and Jeroen van Doornik, aka JD, among friends, co-founder & General Partner of Pacenotes.

Before diving into the podcast itself, we also want to mention that we have already published two episodes on a similar topic with Natasha and Vincent that you can check out here:

Besides this, JD published a great article on his Medium blog on effective strategies for venture capital firms, which you can read here.

Watch it here or add it to your episodes on Apple or Spotify 🎧

Chapters:

00:02 Marketing in Venture Capital
04:39 Crafting a Unique Identity for VC Firms
06:20 Balancing Differentiation and Credibility
15:12 Marketing Strategies for Emerging Managers
17:37 Thought Leadership and Thesis Development
34:06 The Role of AI in Venture Capital
36:35 Privacy and Confidentiality in AI Usage
37:29 The Role of AI in Content Creation
38:36 Using Templates and AI for Productivity
40:10 Data Ownership and Privacy Concerns
43:12 GDPR and Its Impact on Marketing
45:05 Challenges in Marketing Strategies
48:53 Brand and Strategy for VCs
53:14 Measuring Marketing Effectiveness
58:44 Reputation Management in VC Firms
01:07:08 Transparency and Performance in Venture Capital

✍️ Show notes

How to build a strong positioning and maintain credibility as a VC.

"Your brand and everything that you do, say, touch, make, put out in the world needs to be clear and consistent, but it will evolve over time." says Natasha Lytton.
Credibility is built gradually, and for first-time funds and emerging managers, establishing a unique identity without an extensive track record is an important step. For established firms, the focus is on demonstrating the brand's value and continuously attracting top founders, requiring a careful balance of staying true to the core identity while evolving with the market.
Marketing efforts must reflect the genuine values and strategic goals of the firm rather than merely following industry trends. As Natasha notes, the key is to ensure that marketing activities are authentic and meaningful, saying:
"We have to keep fresh, the brand has to keep evolving, the proposition has to evolve to where the market is now without losing the core of who it is you are."
This approach helps in maintaining relevance and attracting the best talent. It's important to avoid the trap of doing something just because others are doing it, and instead focus on what genuinely represents the firm's identity and resonates with its audience.

Vincent says that a decision that venture capital firms often have to make is whether to build a long-term franchise brand or focus on short-term success for the next fund cycle. Emerging managers often struggle with this, sometimes leaning towards short-term tactics that capitalize on individual brands. While this can yield immediate results, it poses a long-term risk as the firm’s identity becomes too reliant on specific individuals.
"Ultimately, what you want is a firm that performs on and on, and you don't want this to be tied to the individual."
Establishing a sustainable and enduring brand involves careful planning and strategic thinking. The question of building a franchise versus pursuing short-term gains is fundamental and should be addressed before diving into marketing tactics.
"If you don't, it's also fine, and you can do all these short-term marketing tactics and it's going to work great for you during the lifetime of your firm."
However, for those aiming for longevity, the focus should be on building a brand that can thrive independently of individual personalities, ensuring consistent performance and credibility over time.

How do you approach marketing as an emerging manager? Insights from JD.

Pacenotes adopts a marketing strategy that aligns with its flexible investment model, and their approach emphasizes deep dives and thought leadership to showcase and leverage their expertise.
JD explains that they focus on expertise and maintain a relatively quiet presence in the venture ecosystem, serving as a layer that supports other firms without being overly loud or aggressive in their marketing efforts. This distinct strategy contrasts with the more direct marketing approaches of typical venture capital firms.
"We try to show and leverage our expertise in what we do, and that's the way that we go about it."
JD notes that while many firms have excellent deal flow and cater to different audiences and purposes with their marketing, Pacenotes' position in the ecosystem needs a different method. Their emphasis on thought leadership and expertise allows them to stand out without relying on high-profile marketing tactics, highlighting the varied ways marketing can be tailored to fit the unique needs and models of different venture firms.

Trends and AI impact on marketing in VC.

Venture capital firms often find themselves at the forefront of emerging trends, setting the stage for future industry directions.
Natasha from Seedcamp highlights this role, sharing an example from 2016 when they partnered with NorthZone to host an event titled "AI is Now," declaring AI as the new mobile technology and predicting its integration across all industries.
"We brought people together and put this content out because we really believed it then."
This approach has been consistent, with Seedcamp being early to market in areas like FinTech and robotic processing automation. Their strategy involves a deep curiosity and proactive exploration of emerging markets and technologies, enabling them to identify and build expertise in promising fields.
However, this proactive stance is balanced with caution and strategic restraint, particularly in areas perceived as overhyped, such as crypto and various delivery services.
"It takes quite a lot of confidence to decide not to wade in, especially in this market, which has this herd kind of mentality."
The ability to resist the fear of missing out (FOMO) is crucial, allowing Seedcamp to focus on long-term value rather than short-lived trends. This disciplined approach underscores the importance of aligning investment decisions with the firm's core values and strategic vision, ensuring that capital is deployed in ways that make the most sense for the organization.

"The biggest challenge we have when we grow as a VC firm, and we have a legacy then, is to make sure we keep this hacker type of mindset where you're actually going to hack markets with founders."
This approach shows the volatility and high-risk nature of venture capital, where many investments may fail, but the successes can lead to amazing companies as well.
The allure of venture capital often overshadows its inherent difficulties. Vincent underscores the importance of staying true to the roots of the VC community, explaining:
"We are hackers; that's where we are. And this is the identity of our community."
This mindset is particularly relevant with the emergence of new technologies like Gen AI, which Vincent compares to the excitement of the early internet blogging days. He expresses renewed enthusiasm, saying:
"I feel like with Gen AI, we have kind of a new technology now that is coming and it's back to the blogging day."
This sentiment captures the essence of venture capital—constantly evolving, embracing new opportunities, and maintaining the innovative spirit that drives the industry forward.

👋 Upcoming in-person events we’re hosting

There’s nothing we like better than getting Europe’s best and brightest together around good food, drinks and conversations that go truly deep.

Fund Modelling Workshop & Mixer | 5th of June | 🌍 Berlin, Germany | Join waitlist.

European VC Awards | 4th of June | 🌍 Berlin, Germany | Get tickets.

📅 Upcoming virtual events

From time to time, a podcast is just not enough. Check out our roundtables and live events below.

🏆 Firesides with the winners of the European VC Awards

Fireside with the Newcomer of the Year Winner | 13/6, 12-1:30 PM | Register here. Hundreds of new VC funds come to market every year. But only ONE will win Newcomer of The Year. This is your chance to meet the winner firsthand.

Fireside chat with the Winner of the Hall of Fame | 15/7, 12-1 PM | Register here.
Hear firsthand from a true giant upon whose shoulders the European tech ecosystem stands tall.

📺 Past virtual events

Investing & scaling in Romania and beyond | Watch it here.
Speakers: Bogdan Iordache, Founding Partner at Underline | Karolina Mrozkova, General Partner at Credo Ventures | Dan Mihăescu, Founding Partner GapMinder | Jakob Stein Investor at Creandum | Enis Hulli, Founding Partner at 500 Emerging Europe | Marius Istrate, ex-UI Path CPO & Chairman at TechAngels

Is Crypto Back? | 📺 Watch it here.
Speakers: Jan Baeriswyl, Founding Partner at Very early | Felix Machart, Partner at Greenfield | Anirudh Pai, Partner at Dragonfly.

Acing LP Relationships | 📺 Watch it here
Speakers: Alexander Langholz-Baikousis, CFO at Cherry Ventures | Simon Lohmann, Head of Platform & IR at Cavalry Ventures | Chloe Dagnell, Principal at Isomer Capital | Sophie Heijenberg, Investor at No Such Ventures | Enrico Ohnemüller, Founder & CEO of bunch

The Evolution of European Venture | 📺 Watch it here
Speakers: Yaron Valler, Founding Partner at Target Global | Chris Wade, Founding Partner at Isomer Capital | Kerry Baldwin, Founding Partner at IQ Capital

Data-Driven Portfolio Modeling | 📺 Watch it here
Speakers: Joel Larsson, Founding GP of Pale blue dot | Jon Coker, Founding GP of Eka Ventures | Joe Schorge, Founding GP of Isomer Capital | Anubhav Srivastava, Founder & CEO of Tactyc

The Impact of AI on VC | 📺 Watch it here
Speakers: Fred Destin, Founding Partner of Stride | Andre Retterath, Partner at Earlybird | Claude Ritter, General Partner at Cavalry | Ekaterina Almasque, Founding Partner at OpenOcean

Winning with non-dilutive funding | 📺 Watch it here
Speakers: Kemper Ahl, Vice President at Industry Ventures | Joe Schorge, Founding Partner of Isomer Capital | Martijn de Weaver, Founder of Floww

Raising in The Current Market | 📺 Watch it here
Speakers: David Dana, Head of VC Investments at EIF | Christian Roehle, Head of Investment Management at KFW Capital | Michael Sidgmore, Co-Founder & Partner at Broadhaven Ventures | Joe Schorge, Founding Partner of Isomer Capital

Rise of Angel LP Syndicates | 📺 Watch it here
Speakers: Joachim Laqueuer, Founding GP at Acrobator Ventures | Marc Penkala, Founding GP at Altitude VC | Michael Sidgmore, Founding GP at Broadhaven Ventures

Angel Investing in the current environment | 📺 Watch it here
Speakers: Marc Penkala & Ingo Drexler, Founding GPs of Altitude

How to evaluate deals and assess risk-return potential? | 📺 Watch it here
Speakers Marc Penkala Founding GP of Altitude