Reflections From Myrror
WITH YOAD FEKETE, CEO AND CO-FOUNDER AT MYRROR SECURITY
Every investor brings a wealth of experience and insights that are vital in navigating the fluctuating markets. On a recent episode of Tech Salescraft, Yoad Fekete, Co-Founder and CEO at Myrror Security, shared his in-depth knowledge gleaned from years in the field, offering a perspective that blends practical wisdom with strategic foresight.
Expert Insights on Emerging Start-ups
The venture capital landscape has experienced significant volatility, particularly influenced by the economic impacts of the pandemic. The initial post-COVID boom in 2021, characterised by seemingly endless declarations of new unicorns, has since transitioned to a period marked by inflation and tightened credit conditions. Start-ups now face a much more challenging environment, requiring adaptability and strategic planning to secure funding.
Investors have become particularly cautious, especially when approached by start-ups offering novel, untested solutions. Our expert emphasises the importance of resilience and careful strategizing for start-ups as they navigate these choppy waters. Top-tier venture capital firms, recognised for their discernment and strategic investment during economic downturns, provide crucial support and funding to promising ventures.
Strategic Fund Selection for Start-ups
Choosing the right venture fund is crucial, particularly for early-stage companies that are still refining their market strategies. Our venture capitalist advises founders to select funds that not only specialise in their specific industry or technology but also align with their geographic focus. Whether it’s a generalist fund or one focused on niche markets like cybersecurity or DevOps, the compatibility of the fund’s focus and the start-up’s goals is critical for a fruitful partnership.
This selection process is not just about securing funds but planning for future rounds of investment. He points out that a fund nearing the end of its investment cycle may not be the best fit if it hasn’t secured additional funding to support new ventures.
Evaluating Founders and Teams with a Keen Eye
Due diligence is a cornerstone of venture capital investment. Our expert prioritises a thorough evaluation of the founders and their teams, seeking to establish not just the viability of their business model but also the potential for long-term growth and collaboration. The chemistry between investors and founders, while not essential, significantly enhances mutual understanding and paves the way for enduring partnerships.
Personal connections and networks play a crucial role in this evaluation process. Our seasoned investor utilises his extensive network to gauge the reputation and past performance of the founders, which helps in assessing their potential for success.
Incorporating Leadership Insights
The insights from the venture capitalist are peppered with reflections on leadership, emphasising the critical nature of delegation within a team.
‘I was always a doer. And the CEO role is to delegate as much as you can. When you do things which you’re not an expert in, that’s the worst thing. So that’s one thing. The second thing, it’s a very lonely role.’
Venture capital investing is not just about financial transactions but nurturing potential and fostering strategic partnerships that can withstand economic pressures. As start-ups continue to adapt to the post-pandemic world, the guidance and insight from experienced investors become invaluable assets in their journey toward growth and stability.