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👋🏾 Hi friends!

Even as autumn descends, it seems like we’re starting to see some green shoots in the venture ecosystem, a bit of life - or to put it more bluntly, a bit of cash coming back into the system - fingers crossed we start seeing a bit more activity so we can see 2024 out with a bang 🤞 🧨 

Don’t forget, I’ll be speaking at Niyo Fest this Saturday where I’ll be talking about Levelling the Playing Field: The Gender Finance Gap - come join me in Birmingham for a celebration of technology, culture and community 💪🏾

As you know, I’m well underway writing about all the things I’ve learned from the last couple of decades as founder, CFO and CEO, so sign up for early access to Off Balance - The Book and feel free to share with anyone else you think might enjoy it 😄. I’m setting myself the target of getting through a large portion of it whilst I’m away in Italy during August - wish me luck!

Now let’s get down to business…

𝗛𝗼𝘄 𝗙𝗶𝗱𝗲𝗹𝗶𝘁𝘆 𝘁𝗮𝗸𝗲 𝗮 𝗴𝗲𝗻𝗲𝗿𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝘃𝗶𝗲𝘄 𝘁𝗼 𝗶𝗻𝘃𝗲𝘀𝘁𝗶𝗻𝗴 𝗶𝗻 𝘃𝗲𝗻𝘁𝘂𝗿𝗲 📈

In this week's episode of Nothing Ventured, I sat down with Alokik Advani, Managing Partner at Fidelity International Strategic Ventures, building and investing in fintech businesses and technologies that are strategic to Fidelity International.

Alokik’s career has spanned over two decades in finance setting up a strategic investment unit for Merrill Lynch in Europe after which he spent a decade building out Goldman Sach’s Strategic Investments team and practice in Hong Kong before joining VC firm Eight Roads as the MD for Fintech Strategic Investments.

In this episode we covered:

→ 𝗧𝗵𝗲 𝗘𝘃𝗼𝗹𝘃𝗶𝗻𝗴 𝗣𝗲𝗿𝗰𝗲𝗽𝘁𝗶𝗼𝗻 𝗼𝗳 𝗖𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗲 𝗩𝗲𝗻𝘁𝘂𝗿𝗲 𝗖𝗮𝗽𝗶𝘁𝗮𝗹: Alokik discussed the common misconceptions surrounding CVCs, often labeled as "dumb money" or slow-moving entities. However, he emphasised that strategic investors can bring significant value beyond just capital. By aligning incentives and actively participating in the growth of startups, CVCs can foster meaningful partnerships that drive innovation and revenue potential. This shift in mindset is crucial for founders to understand as they navigate their funding options.

→ 𝗘𝗺𝗯𝗿𝗮𝗰𝗶𝗻𝗴 𝗗𝗼𝘄𝗻 𝗥𝗼𝘂𝗻𝗱𝘀: In today's market, many startups face the reality of down rounds. Alokik encouraged founders not to dread this scenario but to view it as an opportunity for recalibration. By focusing on building sustainable businesses with solid fundamentals—like achieving $100 million in ARR rather than chasing billion-dollar valuations—founders can create long-term value. This perspective shift can help startups weather economic uncertainties and emerge stronger.

→ 𝗧𝗵𝗲 𝗜𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝗰𝗲 𝗼𝗳 𝗗𝘂𝗿𝗮𝘁𝗶𝗼𝗻 𝗶𝗻 𝗩𝗲𝗻𝘁𝘂𝗿𝗲 𝗖𝗮𝗽𝗶𝘁𝗮𝗹: Alokik highlighted the need for flexibility in investment duration, especially in a rapidly changing market. Traditional 10-year fund structures may not suit all startups, particularly those in sectors experiencing significant shifts. Fidelity's approach allows for a longer-term view, enabling them to support companies that require more time to realize their potential. This adaptability is essential for fostering innovation and ensuring that startups have the runway they need to succeed.

We also spoke about:

🤑 Whether corporate ventures only provide the dumb money and over pay?

👩🏾‍💼 Strategic investors are now involved in 20% of deals or more.

📉 Why you shouldn't dread the downround

⏳ How startups can outlast the 10 year fund structure.

💸 Why if it isn’t easy to realise returns, everything slows down.

🤯 The mindset shift required to becoming the $100m ARR company rather than the $1bn company.

🐢 Alokik’s contrarian advice - Slow down and take your time sometimes.

Check it out on YouTube!

Else listen on Spotify or Apple

If you have any feedback, or if there’s something you’re desperate to see me include, just reply to this mail or ping me online - I’m very open to conversations.

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(If you are trying to connect with me on LinkedIn, maybe read this post I wrote and make sure to start your request with “Off Balance” and, more importantly, tell me why you’d like to connect 💪🏾)

Don’t forget to like, rate and subscribe to Nothing Ventured on Apple, Spotify or YouTube, it really helps more people see what we’re doing - you can find links to these (and more including my Office Hours) right here!

As always, my office hours are open, if you’d like to chat about anything finance, tech or venture releated, just grab some time 😊.

I hope you found Off Balance #51 valuable. As always, I’d love to get your feedback and understand the sort of topics you would love to hear about.

Just hit reply to this mail or drop me a line at [email protected] and let me know 😊

🚀And that’s a wrap for this edition of Off Balance - I’d appreciate your feedback so just reply to this email if you’ve got something you’d like to say.

📨 If you think someone else might love this, please forward it on to them,

🎧 Finally, if you’re a fan of the Nothing Ventured podcast, please don’t forget to like, rate and subscribe wherever you get your pods - it really helps us spread the word.

That’s it from me so until next time…

Stay liquid :)

Aarish

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