Uncovering shared lessons for success from passport stamps to profit margins, and VC to voyages
Venture Capital, often abbreviated as VC, primarily centers around evaluating various sectors, assessing startup potential, managing risks and returns, seeking lucrative investment opportunities, providing management guidance, and exiting profitably when the time is right.
Now, when you introduce Tomorrow Capital (TC) into this equation, you're diving into the realm of Operator VCs — a term coined for those with hands-on operational experience as entrepreneurs or executives. These Operator VCs concentrate on identifying operational strategies for growth, collaborating closely with founders, and leveraging their insights into the challenges and opportunities inherent in building and scaling businesses.
To illustrate the investment cycle for TC, I'll draw parallels with my recent travel experience. Join me on an unconventional journey, as I venture into the picturesque landscapes, taste the exquisite flavors, and uncover the hidden gems of Georgia – No, not the peach state in the USA – the Georgia that's nestled between Europe and Asia. It's a land where wine flows freely, cheese is a staple food group, and the mountains are always up for a game of hide and seek. While my visit was not in pursuit of the next big business idea, but in pursuit of this adventurous trip there was a lot of uncanny resemblance to how we work at Tomorrow Capital which I thought of penning down.
Chapter 1: Finding the “right opportunity” in the spaces of our interest
Finding the right flight to Georgia and discovering the right startup in the world of venture capital share a common thread – both demand meticulous research, a keen eye for detail, a willingness to explore uncharted territories and above all a little of luck!
Well, I guess, I got lucky as I was looking for a direct and short flight to Georgia and Indigo had just started its direct service from India (Delhi) to Georgia (Tbilisi), a week back! Indigo had just decided to find its niche of serving the next upcoming tourist destination, oh boy and what perfect timing to do! Imagine the joy of finding that perfect flight (read start-up) which would save us headache of traveling with an infant.
Chapter 2: From Pitch Decks to Passport Stamps
In the venture capital world, while we are accustomed to sifting through pitch decks and financial projections, it is extremely relevant to identify the right problem to solve and identifying whom are they targeting as audience. But Georgia, with its rich history and stunning landscapes, is a different kind of pitch altogether. The moment I set foot in Tbilisi, I was greeted by a captivating blend of old-world charm and modern innovation.
As a VC, it's fascinating to witness how Georgia is positioning itself as a hub for startups and tech innovation in the region. What's even more intriguing is that I stumbled upon the perfect startup called "GoTrip," offering a point-to-point destination service across multiple locations and days, akin to an Uber but tailored for travelers. This service is a boon, particularly for tourists journeying with infants who wish to avoid self-driving and relish the experience with their children while exploring a country adorned with numerous hidden gems that beckon frequent stops.
Chapter 3: The "Investment" in Culinary Adventures
Investment, like cuisine, requires a blend of carefully selected ingredients, skilled preparation, and the right timing to create a successful and satisfying outcome. The Georgian cuisine is an investment in taste bud expansion. From the heavenly khachapuri, a cheese-filled bread that defies description, to the aromatic spices of khinkali (dumplings), the Georgian dining experience is like a diversified portfolio of flavours.
Georgians take their wine seriously. So seriously, in fact, that they claim to have invented it. Sipping on a glass of wine here feels like you're sharing a secret with the ancients. And they don't just serve wine; they have these enormous clay jars called "qvevri" that they use to ferment it. One can't fully appreciate Georgia without indulging in its culinary delights. As I savored each dish, thoughts of the satisfaction derived from a well-placed investment, flourishing until a profitable exit, streamed through my mind. By the end of it, I felt akin to a contented dumpling, happily rolling back to our hotel.
Chapter 4: Mountains as Metaphors
The Georgian landscape is a constant reminder of the peaks and valleys we navigate in the venture capital world. One moment, you're hiking through lush forests, and the next, you're crossing rivers on sketchy suspension bridges. The mountains are like mischievous kids playing hide and seek – one minute they're right in front of you, and the next, they've vanished behind a thick fog.
The Caucasus Mountains, offer both breathtaking vistas & unpredictable weather. We traversed through the heat of 40 degrees to 10 degrees, across hills, vineyards, beaches, forests, and underground caves. It's a stark metaphor for the investment journey, where one must be prepared for the unexpected while aiming for the heights.
Chapter 5: The curious conundrum of “not doing the right due diligence” and the “right timed exit”
Proper due diligence in venture capital is the compass that guides informed investment decisions and mitigates risks, ultimately safeguarding the success of a venture capital fund. Similarly, Timing the exit right allows venture capitalists to maximize their returns on investment. Exiting too early can mean leaving potential gains on the table, while exiting too late might result in diminishing returns. The goal is to strike a balance that optimizes profitability.
One such incident happened on our trip to “Russia Georgia Friendship Monument” with an unsuspecting Macaw. When we switched on our phone cameras, that sneaky bird went into full "supermodel" mode. It posed, fluttered its feathers, and gave us a sultry look that would put any top model to shame. We were fooled, hook, line, and sinker! We clicked the photo instead of moving on (read exiting!) with our trip. With the perfect shot finally in the bag (or rather, claw), we thanked the macaw and started to pack up our gear. That's when the macaw's agent (yes, it had an agent) swooped in, demanding payment for its impromptu modeling gig! Apparently, this macaw had quite the reputation in the jungle as a shrewd business bird (a failure to do a proper due diligence). After some heated negotiations (complete with squawking and dramatic flapping of wings), we reluctantly agreed to pay the macaw's exorbitant fee, which turned out to be more expensive than our entire trip to the monument.
Chapter 6: The Language of Hospitality
Communication is at the heart of venture capital negotiations, and it's no different in Georgia. However, the language here is a delightful blend of warmth and hospitality as it is surrounded & influenced by the natives, the Ukrainians, Russians, Turkish, Azerbaijanians and Armenians. Georgian is a language that seems to have borrowed letters from every other language on the planet, and it's like a secret code only Georgians understand.
My attempts at ordering food and asking for directions often ended in entertaining charades. But hey, pointing at things on the menu and miming "chicken dance" is all part of the adventure! Even as a foreigner with limited knowledge of Georgian, I found that the genuine smiles and gestures of goodwill transcended linguistic barriers, reminding me of the importance of building relationships in the world of business.
Conclusion: Diversifying the Portfolio
As a venture capitalist, my journey to Georgia has reaffirmed the importance of diversification. Just as we diversify our investment portfolios to mitigate risk and seize opportunities, we must diversify our life experiences to gain fresh perspectives and new insights. Georgia has provided me with a broader view of the world, a deeper appreciation for culture, and a renewed sense of adventure.
So, whether you're a VC seeking the next unicorn or simply someone in search of new horizons, consider adding Georgia to your travelogue. if you're looking for a travel destination that's as quirky as it is beautiful, pack your bags and get ready to discover the magic of Georgia – the country, not the state!
Cheers to the land of qvevri, khachapuri, and endless adventures! Cheers to the investments of tomorrow!
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