On navigating shifting sands, raising and GPs backing GPs with Carlos Eduardo Espinal & Bogdan Iordache

Join us for a deep dive into some overlooked areas in Europe, the role that senior VCs have in supporting the next generation of managers and the rise of new LPs.

Apr 23, 2024

Transcript

We continue our discussion on Fundraising during and after the tech reset, as part of our little hype parade ahead of the launch of the State of European VC Fundraising Report. Today, we have with us two close friends of the pod: Carlos Eduardo Espinal from Seedcamp and Bogdan Iordache from Underline Ventures.

Carlos Eduardo Espinal is a Managing Partner at Seedcamp, arguably, Europe's leading seed fund, first launched in 2007 to support European entrepreneurs truly compete on a global scale. With investments in over 460 companies including publicly listed Romanian-founded, UiPath, Wise and unicorns Revolut, wefox and Pleo. Carlos is a published author, fellow podcaster and has been on the Forbes Midas List as one of the most influential VCs in Europe for more or less as long as yours truly has been alive.

Bogdan Iordache is the Founding GP of Underline Ventures, a $20M seed fund in Romania and the first solo GP in the region. Bogdan and his team are focusing on backing Eastern European founders with global ambitions, and though I just said vertical-agnostic, Underline does pay extra attention to enterprise automation, AI, cybersecurity, industrial tech, defense, and climate-related startups 🌳.

Up for a party? Cue the music and listen to this episode’s soundtrack while reading the key learnings below 👇

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This episode is part of the State of European VC Fundraising Report 👀

Together with our good friends at Isomer Capital and Floww, we’ve made a report filled with graphs, beautiful narratives, and video interviews, providing an entirely new and engaging experience on the topic that has us all traveling across the world ✈️

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Chapters:

00:14 Shifting Sands and the Rise of New LPs
00:32 Seedcamp and Underline Ventures
04:52 Shifting Sands and Impact on Emerging Managers
05:43 Bogdan's Journey Through the Tech Reset
07:58 Carlos's Insights on Supporting Emerging Managers
10:23 The Challenges of Fundraising
12:00 The Tech Reset on VC Funding
17:10 Raising Fund Six and the Importance of Fund Size
21:02 The Art of Fundraising and Learning from LPs
26:27 Exploring Overlooked Geographies in Venture Capital
39:00 The Role of Community and Background in VC
47:44 Reflecting on the Evolution of the Venture Ecosystem
50:02 Closing Thoughts on GPLP Relationships and Emerging Managers

✍️ Show notes

Key learnings from the episode

1. Mastering Economic and Geopolitical Tides:

Strategic Fundraising Amidst Volatility: Both Carlos and Bogdan have navigated fundraising during the turbulent "Tech Reset," underscoring the criticality of timing and strategic insight in securing capital when the market is shifting. The Seedcamp team’s successful overachievement of fundraising targets during these times exemplifies the potency of mixing unparalleled track record with robust networks, and a solid reputation as one of the most coveted names by founders.
Geopolitical Sensitivities: Bogdan’s fundraising for Underline Ventures on the brink of geopolitical unrest paints a stark picture of how external factors can drastically sway the investment landscape. His experience is a testament to the importance of having an ear to the ground and knowing how to (re)position accordingly. But more than anything; endure.

2. Boosting Regional Ecosystems with Local Prodigies:

Catalyzing Local Growth with Global Connections: Local heroes like Bogdan, who have founded and spearheaded significant industry events such as the How to Web conference, are vital in amplifying regional ecosystems. These champions not only bridge local innovators with global investors but also escalate the region’s stature on the international stage, drawing more attention and resources to the local startup ecosystem.

3. The Crazy Times of 2021:

Unscripted Opportunities and Reputation: Mix a hyped marked with a self-made one-man-ecosystem and you’ve got something powerful. Check this quote:

I was in Bulgaria with my family, on the beach sunbathing. And I was approached by someone who wanted to invest in my fund. Not once, but twice, completely independently of each other! It was crazy.

4. Senior GPs Empowering Emerging Managers:

Beyond Money - Guidance and Connection: In the episode, we discuss how Carlos, as one of Europe’s leading VCs, can provide far more than just capital to emerging managers when they choose to invest as LPs. They offer invaluable mentorship, strategic guidance, and introductions to critical industry networks. These relationships are fundamental for new managers who are learning to navigate the complex currents of the VC industry.

5. Visionary Investment Strategies:

Planning for the Long Haul: One thing that stood out throughout the conversation was the importance of long-term strategic planning in venture capital. This involves foreseeing and preparing for market shifts, supporting portfolio companies through economic cycles, and adapting the playbook to ensure sustainable growth and success over time.

7. Synthesizing Personal and Professional Evolution:

Evolving Through Challenges: The venture capital journey often mirrors personal development, shaped by professional encounters and challenges. For VCs, especially those in emerging markets or new to the industry, growth is propelled by continuous learning, adapting to challenges, and successfully maneuvering through the VC terrain.

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