Concentric – the end of the beginning….
As the year 2018 commenced we carried out a formal close of Concentric 1. In so doing we felt it opportune to share some of our thoughts regarding the industry, our model and the entrepreneurs we back.
As an asset class, venture capital is terribly hard to get right. One must deal with an array of issues and challenges as part of a daily routine with portfolio companies that are perennially a “work-in-progress”. But, when you are dealing with exceptionally talented, unrelenting entrepreneurs and the opportunity to be an integral part of their journey, there are few more rewarding and exciting places to be. At Concentric we feel fortunate having been able to launch our first fund during such a fruitful time for the European venture capital industry, where the technological frontier is being pushed back every day by a new generation of entrepreneurs.
In the shoes of an entrepreneur
At Concentric we have deep respect for entrepreneurs who take personal risks and invest to build the next generation of category-leading businesses. The ability to balance long-term vision with short-term survival can often be overwhelming. Indeed, we have been on that emotional rollercoaster ourselves these past few years founding and building Concentric. The plethora of tasks and challenges we have faced have taught us first-hand about being an entrepreneur and the trials and tribulations a founding team must go through to succeed. Our mission is, and continues to be, to establish Concentric as a leading brand in the European venture capital market.
Creating value through being supportive and pro-active
As investors we rely predominantly on the entrepreneurs to make a business successful. That said, we are there to assist, facilitate and fund the journey of the founding team and aim to add value through pro-active support and focus. We hope these principles will further establish our name and that future talented entrepreneurs will naturally gravitate towards Concentric as they seek to build out their businesses.
Rapid societal, economic and technological change are front of mind
As investors we know it’s essential to stay intellectually curious and honest and to not allow complacency or arrogance to creep in – we need to keep the fire in the belly and dare to be different! With all the challenges facing society through a rapidly evolving technological landscape, particularly in the context of increasing monetary and socio-economic volatility, this becomes increasingly important. These observations are reflected in the type of deals we will be pursuing going forward.
Collaborative model reflected through global partnerships
Venture capital is hard, but we feel the timing is right. Technology is becoming an integral part of any industry, European entrepreneurship is at its peak and we are experiencing a second wave of Entrepreneurs; a young generation of hungry and talented founders inspired by what the future could bring. We have been joined by a dozen global families on the journey, families that are keen on venture capital and see the value in a partnership structure with aligned incentives. Some of our capital partners may not have the internal infrastructure or experience to support a demanding venture portfolio, but are keen to share with us their global industrial networks and skills. These relationships exemplify the collaborative model Concentric is looking to expand even further and we are grateful to our early supporters. Collaboration is at the core of our working philosophy and this is also why we have decided to be transparent about our structure and incentives towards stakeholders and broader ecosystem partners. Going forward we aim to continue to innovate on how venture capital funds operate and are structured to achieve an ever-greater alignment of interest while maintaining flexibility of capital deployment.
Exciting portfolio being carefully nurtured
Since we started investing in 2013 we have assembled a portfolio of 16 exciting companies with a number maturing to occupy leading positions in their respective verticals. To source, execute and manage these we have assembled an experienced and hungry investment team and an advisory council that will enable us to catapult the portfolio to the next level whilst adding new portfolio companies throughout 2018. We are proud that all our team members and advisors invested personally into Concentric or will share in the carry economics. We look forward to growing professionally and as individuals alongside our portfolio companies – learning from each other and sharing the economic rewards in an equitable manner.
The first of many chapters
This is just the beginning of our journey and we feel we have put into place the building blocks to enable Concentric itself to prosper as well as play an integral role in the growth of the European venture community.