The next guest on our profile series is Alexia Arts. Alexia had a successful journey from Associate to Principal at MMC Ventures – an early-stage fund backing transformative technology companies, prior to which she started her VC career as an Analyst at Santander InnoVentures. Now Chief of Staff at Gaia, Alexia reflects on the skills that she herself relied upon and those she looked for when hiring Associates.
AS: So, could you tell us a bit about how you chose to enter the VC industry in the first place?
AA: This might be one of these annoying answers, as it was not really planned… I did History and Spanish at university, but also did Maths and Chemistry at A-level to keep my options open. When I graduated, I still did not know what I wanted to do, but I ended up getting a graduate job at Santander, as I thought it would freshen up my financial skills and that perhaps I would get to use some of my Spanish. So, I did a rotation, spending 6 months in each department. I had a good time and learned a lot, but none of the rotations really appealed to me, so I started thinking about what the next step would look like for me.
On an external website, I came across Santander’s venture arm called Santander InnoVentures. It wasn’t really publicised internally, as the team reported directly to the Spanish HQ rather than to the UK. There were only 6 people investing in fintech companies globally. I found that to be super-interesting, especially as fintech was growing a lot at the time! I have met a few of the team members at networking events, after which I ended up applying for and getting an Analyst role, which is how I fell into VC. It was a corporate VC; we rarely led and mostly followed rounds, so a lot of our value proposition was what Santander could bring to the fintech by expanding their customer reach. In hindsight, it was a great way to get into VC without me knowing much about it, as a few years later it became very competitive. I also think that having been in the bank for 2 years and knowing various divisions made me a stronger candidate.
I learned a lot. You get to see what metrics you can use to analyse startups, you look at term sheets, legal documents, do market research. So, it was a great way to build skills. I had a great 2 years there. Yet, I also quickly decided that, ideally, I wanted to go to a fund that leads rounds, have more involvement with founders and take board seats as opposed to board observer seats. Hence why I started looking at more early-stage companies, as in Seed and Series A funds. So, I applied to a couple and ended up choosing one of the two options I had based on the positive experience I had during the interview process.
That is when I joined MMC, which is a Seed and Series A fund. I still continued to look a lot at Fintech and Insurtech, and ended up staying for 4 years.
AS: Really interesting! And what was the motivation behind you eventually leaving and joining Gaia?
AA: I really enjoyed VC. There is a lot to like. However, if people were to ask me now whether I would go into VC so early in my career, I would probably say no. At least for me personally, I would have preferred to gain operational experience first, as it gives you more confidence as a venture investor. I think there are certainly amazing investors who come from a purely banking / investing background. I also think that being a VC Associate or an Analyst is a lot of fun. You are meeting a lot of incredible founders and learning so much (although it might not feel like it in your day-to-day, as you are supporting companies as opposed to achieving large milestones yourself). However, as you get more senior and start taking more board seats, the next question becomes: do you want to be partner? That is a long-term commitment – a 10 year buy-in – so you really probably could become a VC for life. So, it was now or never for me. And I do potentially see myself returning to the VC world in several years. Hopefully, to selectively invest in areas I am passionate about, and where I can really add value.
As it happened though, I met a company that was raising their Series A round and I absolutely loved what they were doing. It really felt like a new product built from the ground up that truly differentiated from the multitudes of decks that I have seen as a VC. Initially, I really wanted to invest in the company. It was a mix of Insurance and Health, both of which I had spent a lot of time on. Atomico ended up winning the deal, which happens often in venture, especially when the market is as hyped as it was. I stayed in touch with the founder, and, after raising his Series A, we started to discuss a Chief of Staff role. It was quite organic, again. Though I was considering it, I hadn’t actively started looking, but this opportunity felt so right. Then, I did my homework and spoke with several Chiefs of Staff to better understand what I should be doing and looking for. I do genuinely think that, given I was in VC for quite a while, and the company had made such an impact on me, I had to trust my gut.
AS: That’s a really lovely story. You touched on the learning curve you had as a VC. What skills, perhaps soft skills as well as hard, have benefitted you the most?
AA: My role is extremely broad, so VC definitely helped. You do a lot of market research, some financial modelling, plenty of networking, analytical desk work – the breath of things is extremely transferrable. Currently, I look at business metrics, forecast, work on new opportunities, have taken on the People role and am focusing on expanding to the US. In the startup world, you begin to understand that every function is intertwined and does not fit into neat boxes. Having been in VC, I felt I understood a little bit about everything that was going on, which was a great starting point. I suppose I expected to be more underwater when I first started than I was, so I will credit that to VC! For example, everyone at the fund gets very involved in interviewing, which has been a large part of my role at a growing startup.
AS: I would love for you to expand on the process of hiring VC associates. What sort of things did you look for?
AA: That is what came to mind when you said “soft skills”. Obviously, you do give people case studies and look for their answers, but they do have 24 hours to do it and they can easily go do their research. You get an idea about how they think about things, analyse and present them. However, the bigger factor in my mind is that you’re adding a new person to a small team. It is a big ask. Cultural fit, work ethic, curiosity and creative thinking are all super important. Are they additive to the culture? Will they negatively clash with anyone? All the soft skills around their personality are key, as is the degree to which they want the job. It can be quite an intense job, so getting to know the candidates through the process was crucial. Having hired a few, you then start to fill gaps within the team. For example, if you already have someone on the team who loves networking and going to events, you might want to bring in a new person who will be more deeply-analytical and will help with internal processes and automating deal flow – that is when you start to focus more on the hard skills. Even at Gaia, though we clearly define what we look for, attitude is key: do you move quickly, are you hungry, do you aim to be the best, do you treat everyone with respect, are you kind, and so forth.
AS: You mentioned the intensity of the job. What has been the most challenging aspect for you, looking back?
AA: I think it applies to a lot of jobs, but just the juggling of things. If you are doing a deal, you really want to go deep and do research, especially at early-stage where you may not be focused on a market. At the same time though, you also feel like you are missing out on events and new opportunities. So, being good at prioritising your time, not comparing yourself to others, and being okay with not seeing every deal is important. There will always be new people that you can meet, but you have to be pretty strict with yourself. Plus, as you get more senior, the pressure of investing your LPs money also increases. When you are an Associate and you are helping a deal lead, it’s interesting and fun to debate. However, actually making that decision is a massive step change.
AS: That is so true! Lastly, having been on both sides, what advice would you give to students before they go into VC?
AA: Think about the reasons why you want to be a VC. Is the fact that you get to see a lot of deals and learn a lot of skills a good enough reason for you? It is a very difficult market to differentiate yourself in. So, what is it about you that makes you different: are you willing to work very hard, do you have an edge, are you financially driven? I think sometimes the fact that, at the end of the day, the job is to bring investors returns is overshadowed. I would say, learn what drives you before making that decision. Also, consider what order you may want to do things in. And lastly, make sure you investigate whether the fund you are speaking with is the right fit for you. It is very obvious when people throw their hat in the ring for all funds at any stage.
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