Why sales is underrated in European VC with Doreen Huber, Partner at EQT Ventures

Watch a new episode of the EUVC podcast packed with lots of inspiring stories and take-aways for you to chew on. 🧠.

Patricia Borlovan

Jan 23, 2024

Transcript

Today, we have Doreen Huber. Doreen is a Partner at EQT Ventures, a €1.1 BN early-stage venture fund with offices all over Europe and the US to back European and US startups. At EQT Ventures, Doreen focuses on Software in Europe, leading the investment into Parloa this year, the AI for Customer Care Automation.

EQT Ventures is investing out of Fund III with a total of €2.3 BN AUM and an established portfolio of more than +100 companies and notable investments, including Handshake, Banking Circle, Einride, Instabee, and Verkor.

Prior to joining EQT Ventures as Partner in January 2022, Doreen spent several years honing her role as one of Germany’s most respected business entrepreneurs and food technology experts, holding various C-level positions throughout her career and having founded her first company at 23.

As the founder and CEO of LEMONCAT (acquired in 2019 by Rocket Internet’s B2B Food Group), Doreen built a marketplace and SaaS solution for the European catering industry. She was also COO of food delivery unicorn Delivery Hero, currently valued at over €10bn.

Outside of work, Doreen is a keen traveller and art lover and holds a Master's degree in Media Science, Literature and Art History from Humboldt University Berlin

I never wanted to become a founder or investor. I just wanted to create amazing things with like-minded people.

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Table of Contents | Scroll ⏬ for all the insights 👀

Episode chapters.
Impact of sales on your success as a founder.
Three biggest learnings from the last 10 years of life.
Luck as the intersection of opportunity and readiness.
Shout-outs for someone in the industry.
Advice to a younger self.
Top tips for emerging managers fundraising.
The most counterintuitive thing learned in venture.
Why founders are too obsessed with brand names.

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Chapters:

00:02:40 - From Writer to Founder and VC
00:05:08 - Investing with Aligned Goals
00:07:32 - Lessons Learned from Early Investments in Delivery Hero
00:09:47 - The Shift in Perspective
00:12:33 - Embracing Luck and Gratitude
00:15:13 - The Intersection of Business and Creativity
00:17:46 - The Intersection of Different Backgrounds in Startups
00:20:11 - Sales as Crucial to Success
00:22:36 - Sales Teams in Product Growth
00:24:58 - Sales DNA
00:27:22 - Importance of Monetization Strategy
00:29:49 - Bridging the Gap in Sales Culture
00:32:23 - The Power of EQT Partners to Connect with Experts
00:34:51 - Leveraging Knowledge within Organizations
00:37:31 - Being a Supportive Investor
00:39:56 - Lessons for Founders from a VC Internship
00:42:17 - The Randomness of VC Decision-Making
00:47:14 - The Importance of Company Culture in Remote Settings

Q: Impact of sales on your success as a founder.

Having a strong sales strategy, especially in the software market, is incredibly important. It’s crucial that one of the founding members isn’t afraid of sales and possesses a strong sales DNA.
We’ve observed cases where CEOs who were introverted and hesitant about sales struggled to succeed. If you’re such a founder, success may be challenging to attain.
To thrive, it’s vital to reach out daily and build an exceptional team. This includes communicating with the sales team, and customers, and diversifying your sales efforts.
In the United States, sales are highly numbers-driven, but in Germany, it’s not as common; it’s more of an American concept. In the US, salespeople are the heroes. In Germany, it is not perceived as a great career opportunity.
It’s essential to be open to sales and infuse a sales-oriented approach into your business.

Q: Three biggest learnings from the last 10 years of life.

1. Empathy is underrated.

I hope to see more former founders become investors. It’s challenging to connect with investors who don’t understand the struggles you face.
Investors who can empathize with the founder journey are crucial.
Layoffs are particularly tough for founders, and I noticed that former investment bankers turned investors can sometimes be less compassionate. Over time, you become emotionally attached to your company, and I didn’t always feel that my investors were empathetic. When I do business I need a certain level of respect.
I wished for someone who could bring that empathy to the table. This is what EQT Ventures brings to the table with a team of ex-founders and ex-operators.

Don’t take things personally.

There are numerous variables at play when someone rejects your deal.
It’s crucial to keep approaching it as a business endeavour rather than a personal matter. In this context, it’s essential to maintain a less emotional and more objective perspective. Don’t take anything personally in the world of venture capital.

I would have benefitted from a VC internship before starting my first company.

My angel investing journey began in 2011.
Long before joining EQT Ventures, I made 40 investments as an angel investor over the years. It took time to understand how I could contribute and give back to entrepreneurs. I realized that the more experience I could bring to the table, the better I could support founders.
Throughout this journey, I found myself constantly questioning my own understanding.
Angel investing is a long-term endeavor.

Q: Take a stance.

Doreen wanted to take a stance on two controversial quotes from our previous podcast guests.

“If one needs luck to be successful, they are doing something wrong.”
Daniel Keiper-Knorr, Speedinvest

“There is little to no luck in business life in general. It all favours just the prepared mind and hard-working individual.”
Staffan Helgesson, Founder of Creandum

We've got a clash of philosophies here. While some are saying "luck is for the unprepared", I'm here to throw a curveball.
You've got Daniel Keiper-Knorr and Staffan Helgesson in one corner saying, "If you need luck, you're doing it wrong." But, in my corner, I'm embracing luck and I think we are all having it here, being born in a wealthy region like Europe.
I was born behind walls when the Berlin wall was still in place, that was bad luck, but the wall came down in 1989. Wasn’t that luck for me?
Let's face it! Business and venture capital are complex ecosystems.
While preparation and hard work are undeniably crucial, external factors beyond our control can influence outcomes. Market trends, geopolitical events, or unexpected technological advancements can introduce an element of unpredictability. It's essential to acknowledge that luck can sometimes be a factor in determining success.
I see luck as the intersection of opportunity and readiness.
Being at the right place at the right time matters.

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

My shout-out is not only a shout-out but a standing ovation!
And it goes to the Point Nine team, and especially to Pawel Chudzinski.
He was my investor in two of my companies. I had many investors on my cap table throughout the years but I valued Pawel the most. Some of that gratitude came also in retrospect.
Pawel is one of a kind for giving unwavering support during challenging times.
When times were tough, he didn't write me off; instead, he stood firmly behind me, my company, and my ideas. He supported me with money and lots of great advice but at the same time gave me enough space to explore my own way.
Pawel is is extremely thoughtful and experienced. His advice was super powerful.

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

On a personal note.

Start meditating earlier! Take care of your health.
This journey is a long and exhausting one.
Have patience and do not care about other people’s opinions. You are only doing this for yourself! Focus on yourself! You don’t need external validation.

On a business note.

When I was a founder, I had a bit of arrogance towards investors and didn’t always see their value. I used to think, «What can they possibly tell me? They’re not in my shoes.»
I used to believe that most investors had never experienced the founder’s journey themselves. However, I’ve come to realize that this wasn’t true because investors bring one key perspective to the table: the “helicopter view”.
VCs talk to hundreds of companies every month, and they quickly spot emerging trends. They see how money flows, which founders are not focused on. Looking back, I wish I had listened to my investors more.

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

Fundraising is essentially a sales game. You need to expand your outreach and effectively communicate your vision.
Persistence is key in the fundraising process. It plays a crucial role in achieving your goals.
Find your own voice. Don’t copy others.
Be a leader, not a follower!

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

VC decisions are more random than a founder thinks.
If you make it down the funnel and investors are seriously looking at your company, the decision is hopefully well thought through. But in an early discussion, there are many reasons why an investor might decline you. It is not always for rational reasons. Don’t take it personally and carry on.
Culture is everything and can determine the success of a startup. Remote working can particularly hinder your ability as a founder to build a strong and exciting team.
You should never stop fundraising – even if you have just finished a round.
Having a strong sales strategy, especially in the software market, is incredibly important. It’s crucial that one of the founding members isn’t afraid of sales and possesses a strong sales DNA.

Q: Your uncommon belief.

Founders are too obsessed with brand names.
Build your board like a football team and pick VCs that have a superpower you desperately need. Ie. Design, product development, or sales.