Within the ranks of European VCs, there are many former bankers, consultants and, as of late, founders.
There are usually not — in contrast to within the US — so many former operators.
Individuals who sorted particular capabilities at startups — from advertising and marketing to finance or gross sales — are nonetheless poorly represented in European VC, save for a couple of high-profile examples like Sophia Bendz at Cherry (former international advertising and marketing director at Spotify) and Carlos Gonzalez-Cadenas at Index (former COO at GoCardless).
The share of ex-operator companions at European VCs has been estimated to be as little as 1.8%. Alternatively, ex-founders make up near 1 / 4.
But it surely seems to be like that’s set to alter. Extra operators as of late have the money to write down angel cheques, generally seen as an entryway into VC. Extra VCs, like Accel, Atomico and Sequoia, are giving European operators money to speculate by way of scout and angel programmes. And a few VCs, like Taavet Hinrikus’s Plural, are even particularly trying to rent ex-operators.
The operator attraction
One VC on the hunt for operators to lure to the darkish aspect is Micah Smurthwaite, associate at Next47 in London. He’s one himself — he was beforehand in gross sales at cloud companies big Cloudflare.
“For those who’re an entrepreneur, wouldn’t you need somebody within the investor seat who is aware of lots about driving income or scaling an organisation? Would that offer you higher odds of success?” he says. “That’s why I believe an operator background as an investor is exclusive within the European enterprise ecosystem.”
He just lately employed Kate Reznykova, a software program engineer who’s labored at Apple, eBay and FreeNow. She joined Next47 in December as a senior affiliate.
She thinks her operational background provides her an “enhanced means to actually comprehend a founder’s technical challenges and alternatives. This shared expertise not solely fosters a deeper understanding of the founder’s imaginative and prescient of the product but additionally lays the groundwork for constructing a long-lasting relationship.
Next47 and Plural aren’t the one VCs on the hunt for operators.
Jeremy Cowen, a guide at govt hiring agency Kea Consultants, says that operators “may be extraordinarily additive — not only for cultural causes or recent concepts and networks — however to basically transfer the needle in entry to probably the most aggressive offers”.
He provides that corporations trying to rent from outdoors the small pool of present buyers can “entry a a lot larger (and sometimes untapped) expertise pool by senior operators” — as long as their interview course of accounts for the totally different background.
Paths from ex-operator to VC
Not all buyers see issues that method, nevertheless.
Operators say it may be troublesome to interrupt into VC as a result of there are few formal grad schemes and internships and corporations don’t go to enterprise faculty campuses to recruit, in contrast to larger industries like non-public fairness or consultancy. Plenty of jobs are received by way of introductions — onerous should you don’t have already got an trade community.
“From a VC’s perspective, by hiring somebody like me they’re additionally taking a danger,” says Cleo Sham, who joined London and Paris-based VC Stride in 2021. As an operator, she oversaw Uber’s operations in 45 international locations and led a workforce of 200 as COO at proptech Spotahome.
Among the dangers raised by VCs Sifted spoke to included considerations concerning the analytical expertise of former operators, or — particularly if they’re hiring somebody into senior roles — their means to stand up to hurry on how offers are evaluated and closed.
Many operators-turned-investors Sifted spoke to clocked up some take a look at miles by way of angel investing.
“It’s a very good factor to start out making these small investments to see if you wish to do it each day and begin serving to founders,” says Morgane Zerath, principal at London-based VC Crane. She was one of many first staff at cloud e-mail safety firm Tessian, the place she labored in gross sales.
“I had the codes to know what it takes for an organization to succeed or not. My intestine was telling me that it was the time to assist founders scale,” she says.
Stride’s Sham was taking a 12 months off after her position at Spotahome and began spending extra of her time with founders she had backed as an angel, which made her need to work in VC.
As soon as she had her aim discovered, although, she says the toughest issues about her transition to VC had been convincing recruiters she didn’t need an working position and convincing VCs she didn’t desire a enterprise associate position. The latter is commonly stuffed by ex-operators who’re between gigs, and infrequently has the identical degree of duty as a full associate.
“I needed to be fairly acutely aware concerning the messaging and ask [recruiters], ‘Are you able to please introduce me to the individual in your workforce who helps VCs?’” she says. “I needed to change the dialog and really sign to the market that [operating] was not what I wished.”
What do operator buyers actually deliver?
So do ex-operators actually deliver one thing particular? There are broadly differing views. One of the revered names within the enterprise — US VC Fred Wilson at Union Sq. Ventures — isn’t satisfied. “Operators work on one factor on a regular basis. VCs work on many issues on the similar time,” he wrote in 2017.
Nobody has but crunched the numbers. Although in a roundabout way comparable, there isn’t any correlation between prior entrepreneurial expertise and VC efficiency, in keeping with evaluation on CB Insights.
Helena Barman, an investor at Eight Roads Ventures, says that her expertise at Farfetch was immediately relevant to Eight Roads’ funding in on-line style market Otrium, and her advertising and marketing and analytics data provides her an edge in figuring out funding alternatives.
However she admits that operators’ in-depth data “fades over time”.

So what does that go away you with? Barman cites founder empathy, an understanding that firms are extra than simply markets and financials — “it’s actually about individuals” — and a community of operators who nonetheless are literally practising. The “phone-a-friend” is actual.
Stride’s Sham says that there ought to even be room for operators to maneuver between VC and startup roles after they need to refresh expertise.
“There are some individuals who swap forwards and backwards. There are some who keep in investing endlessly. I’m not against both,” she says. “It simply will depend on what matches my life scenario, or if I get tremendous enthusiastic about constructing one thing.”
Early days of operator-investors in Europe
It’s nonetheless early days for operator buyers in Europe. Next47’s Smurthwaite says he created a WhatsApp group for buyers with comparable backgrounds to himself final summer time — which now has 18 members.
“I’d like to have extra, but it surely’s a sign of the place I believe the ecosystem is,” he says.
“However 10 years from now, there can be many extra scaleups in Europe, many extra buyers or operators who’ve began writing angel cheques, and lots of extra operators who can be pondering extra about enterprise as a result of they’ve acquired some expertise doing angel investing.”
We’ve additionally compiled an inventory of operator buyers in Europe. These are buyers who don’t have expertise beginning their very own firm however who’ve labored at a startup or tech firm. If there are additions, please e-mail: [email protected].