The world of venture capital (VC) has seen a significant shift in recent years, especially in Europe. The emergence of a new breed of investors, known as “operator VCs”, has been gaining traction in the European startup ecosystem. These are former founders who have now transitioned into the world of venture capital, bringing with them a wealth of experience and knowledge.
This trend has been prevalent in the United States for many years, where the majority of VCs are former founders themselves. However, the reverse has been true for Europe, where most VCs have traditionally come from backgrounds in banking or finance. But with the rise of operator VCs in Europe, this trend is slowly changing, and for the better.
One of the most recent and notable examples of this shift is the Wise founder, Taavet Hinrikus. After successfully building and scaling Wise (formerly known as TransferWise) into a multi-billion dollar company, Hinrikus has now turned his attention to investing in the next generation of European startups. He has joined forces with fellow operator VCs, such as Index Ventures and Accel, to form a new fund called “LocalGlobe”. The fund has already made several investments in promising startups, including Revolut and Citymapper.
Another notable operator VC in Europe is Oscar Pierre, the founder of Glovo. After leading Glovo to become one of Spain’s most successful startups, Pierre has now shifted his focus to investing in the European tech scene. His new venture capital fund, “K Fund”, has already made investments in companies such as Badi and OnTruck.
The rise of operator VCs in Europe is a positive development for the startup ecosystem. These former founders bring a unique perspective to the table, having been in the shoes of entrepreneurs themselves. They understand the challenges and opportunities that come with building a successful startup, and can provide valuable insights and guidance to the companies they invest in.
Moreover, operator VCs also have a vast network within the startup community, which can be leveraged to help their portfolio companies grow and succeed. They can open doors to potential customers, partners, and even future investors. This is a significant advantage for startups, especially in the early stages when they need all the support they can get.
The presence of operator VCs in Europe also brings diversity to the venture capital landscape. With a mix of backgrounds and experiences, these investors bring a fresh perspective to the table. They can identify opportunities that traditional VCs may overlook, and bring a different set of skills and expertise to the table. This diversity can only benefit the European startup ecosystem, as it continues to grow and evolve.
Furthermore, the success of these operator VCs can also act as a source of inspiration for aspiring entrepreneurs. Seeing former founders transition into the world of venture capital and continue to support the startup community can motivate others to do the same. This can lead to a cycle of success, where successful founders turn into successful investors, and the cycle continues.
In conclusion, the rise of operator VCs in Europe is a positive and exciting development for the startup ecosystem. These former founders bring a unique perspective, a vast network, and diversity to the venture capital landscape. Their presence can only benefit the European tech scene, and we can expect to see more success stories in the future. Aspiring entrepreneurs can also look up to these operator VCs as role models, and we can hope to see more of them transition into the world of venture capital in the years to come.
