Sam Louis is an Investor at Venture Capital and Private Equity firm, AIV Capital. Having worked for a wide range of companies, including Angel Investment Network, BrickTribe, SeedTribe Sam has a good idea of the inner workings of the whole entire funding ecosystem and as such has developed a deep understanding over what makes a good founder.
Riding Unicorns invited Sam on the show to mull over the topics of what impact investing means to him, how he is able to source great deal flow and the type of founders he attracts.
Make sure to like and subscribe to the Riding Unicorns podcast to never miss an episode. Also don't forget to give Riding Unicorns a follow on Twitter and LinkedIn to keep on top of the latest developments.
Sam Louis is an Investor at Venture Capital and Private Equity firm, AIV Capital. Having worked for a wide range of companies, including Angel Investment Network, BrickTribe, SeedTribe Sam has a good idea of the inner workings of the whole entire funding ecosystem and as such has developed a deep understanding over what makes a good founder.
Riding Unicorns invited Sam on the show to mull over the topics of what impact investing means to him, how he is able to source great deal flow and the type of founders he attracts.
Make sure to like and subscribe to the Riding Unicorns podcast to never miss an episode. Also don't forget to give Riding Unicorns a follow on Twitter and LinkedIn to keep on top of the latest developments.
[00:00:00] James: Hello and welcome to riding unicorns. The podcast that celebrates high-growth businesses and the people behind them. I'm James Pringle.
[00:00:20] Hector: And I'm Hector Mason
[00:00:21] James: and today we're delighted to be joined by Sam Louis from angel investment network and now part of the founding team at AIV Capital. Thanks for joining us on the podcast today, Sam.
[00:00:31] Sam Louis: Thanks so much guys.
[00:00:34] James: Awesome. So, so maybe you could start by just giving us a rundown of your career to date and how you ended up getting involved in AIV capital.
[00:00:43] Sam Louis: Yeah, absolutely. It's been a pretty interesting, journey so far, which I think from the outside looks very eclectic and a sort of haphazard, but actually from the inside is, uh, is quite a bit more straightforward.
[00:00:56] So I left uni, about [00:01:00] seven years ago. I've been working with a couple of startups. I knew I wanted to. Either move into the sort of world of funding, startups, or starting a startup myself. And, um, while I was working for a couple of very early teams, found a, the angel investment network. They were looking for a new hire.
[00:01:19] And I came on board to run the company's first, accelerator program. So we raised money for not only startups, books of property investors. One of the property investors, uh, that we worked for had created a what space up in north London. So I came in, ran a four month accelerator, had an absolutely brilliant time.
[00:01:41] I think only had about four months. Contract or something. There's a sort of like temporary trial run kind of thing. So interviewed about 400 companies got to pick eight of them. I've no idea what experience they thought I had to decide who was going to be in their accelerator, but they were just very open with it.
[00:01:59] Got all [00:02:00] sorts of great mentors and founders that we'd worked with an investors in to do workshops. I had an absolutely brilliant time and it was great. Unfortunately, it was basically Essington and our HQ is in Southwest London and Boston screen. So although it went really well and we felt that we got really good fit on the model.
[00:02:16] We decided not to spend all of our time on the Victoria line anymore. And so from there I kind of evolved into the team spent a number of years. As part of our, broken team, but also work on platform side. So as a bit of background engine investment network is a global network of angel investors.
[00:02:36] We hook up entrepreneurs with investors all around the world from angels, family offices, VC, private equity firms, and, That works very much as a self-serve digital platform like social network. But within that, we also have a sort of hands-on team who do kind of intermediary services. So we actually go out.
[00:02:57] Run a campaign on your behalf. , connect with investors [00:03:00] that we think would be particularly interesting, pitch it to them and then make an introduction at the point that they're ready to have a real conversation. Which is actually, it was a while before I understood this is actually not dissimilar apparently to investment banking, but obviously just very different asset, , which has been fantastic for the last.
[00:03:17] Sort of five, six years or so. Met some fantastic founders, met a lot of cool investors. Alongside that we've continued to do the property on the side. Very much the same model, very much the same group from investors. You know, all of our investors have a very similar kind of a broad portfolio.
[00:03:34] Property is always going to be a part of that. So about three years ago, we decided to roll out as its own entity, give it so brand, which is called brick tribe, which are, I led the kind of launch of, the build of the platform, . Both with the AI platform and with brick child. What I've always really loved is, the fact that I get to sort of sit in both seats a little bit.
[00:03:58] I get to sit kind of in the investor [00:04:00] role, interviewing entrepreneurs but then the other half of my time, Is working out conversion funnels, working out sales tactics, customer acquisition costs, all of these things that I then feel like I have a much more legitimate position to then go and kind of grill someone on their own metrics.
[00:04:18] And it gives you a real, incredible sense of appreciation when you see someone with. Phenomenal growth. And it had an incredible, incredible metrics, as you say, wow, I know exactly how hard it is to actually nail that. Very glad to say is, has steadily year on year built. We've increased the number of, investors that we have on board. We've increased the amount of investment that we see coming through the platform, the intermediary service, a lot of the brokerage as we sometimes call it has gone from strength to strength.
[00:04:47] And then I now find myself pretty much the majority of my time and are really, I've very much evolved into heavy capital, so angel investment network generally works from concept stage up [00:05:00] to about series a, , an AOV capital is a series B to pre IPO.
[00:05:06] Fund we work on a deal by deal basis. We look at later stage companies, larger checks, they're generally 5 million to 50 million. And we work on a deal by deal basis. So we're not raising a big blind fund. We much like we do with our intermediate work at the moment, we find interesting opportunities.
[00:05:23] We assess them, we do the real kind of depth of due diligence on them. We bring them up to LPs, have much more considered conversations and we do at the early stages. But then we actually create a single asset fund vehicle. We take the capital into that and then we actually manage it as the ongoing custodian of that investment.
[00:05:42] On behalf of the LPs, we invest alongside our LPs, um, and its crew. The aim is really that, we're able to create this. Kind of, cradle-to-grave almost value proposition whereby a lot of these businesses are now [00:06:00] significant later stage, , enterprises. Raising later rounds and we've been there and we've been involved and we've kind of been part of their journey the whole way through, so despite wearing many hats, I've actually worked with the same team in the same space for, uh, for pretty much my whole career so far.
[00:06:18] Hector: It's super interesting, Sam. So, I mean, you guys are pretty entrepreneurial in what you've built. And it seems like you've, you started offering people, founders value, all the way through their journey. what do you think it is that gets to you guys access to these amazing deals? And what, do you think is the value in, operating through the value chain?
[00:06:38] So being active at the earliest stage and also being active at really late, pre IPO stages.
[00:06:46] Sam Louis: I think the way that we attract people in the value that we built really is just long term game plan and has been a big part of why I've not left so far aside from sort of having constant new [00:07:00] projects to, to keep me interested So we don't, we don't advertise the intermediary service at all.
[00:07:05] We don't have a website. We're actually considering building one at the moment, but up until now, because we've got this big platform that's global. If we then told everyone that we have a much more selective service, but where we do a lot of the leg work for you as a small team, we just always felt that we'd be inundated.
[00:07:22] So we've really worked on. Doing good work for people and getting good referrals. Good word of mouth. the vast majority of the companies that we work with in that capacity are from direct referrals, either from our investors who say, I love the stuff that you guys do. Two of my other portfolio companies raising I'd love for you to work with them, or it's referrals from word of mouth through founders that we worked with.
[00:07:49] And that just takes time really. but generally we've got a freemium model, so you can go up, you can start up pitch, um, For free, you have slightly less [00:08:00] features, but you know, you can potentially access 250,000 investors across 90 countries across the world.
[00:08:07] And it will cost you nothing. And you can put an advert up there that says, this is who I am. This is how much money I want. This is my idea. Would you be interested in having a conversation and you can have a conversation with them and having that along with a money back guarantee. So if someone doesn't get any meaningful interest, we give them their money back. And I think that whole ethos is ultimately flexible and works in the best interest of the entrepreneur.
[00:08:32] With the intermediary service, it's a pure success fee. There's no exclusive, there's no obligation to take the money. To choose who you should be building a cap table where there's like, that's, that's how, that's, how I'd love to see it go every time I'd love to see us overfund every single person. And then, then really pick the valuable investors that they thought were right for them. Cause I think it creates a really virtuous cycle on both sides of, of realizing that like there has to be more of a value proposition and [00:09:00] exchange than just a transaction of cash.
[00:09:02] We've always tried in a sort of ad hoc manner to add more value. So whether it's placing people for chairman making introductions at the latest stages, promoting impact, giving people a heads up about property development, all of these things started as like, we can do that.
[00:09:19] This person would like it, it would provide value. Let's just bring it in and start running with it. Um, I think that
[00:09:28] James: Sam, you mentioned impacts a couple of times and talks about the seed tribe and what that's working on.
[00:09:33] I appreciate it's not your full-time thing, but , what does the impact mean to you guys? How can founders kind of think about positioning that business as pro impact without greenwashing or overestimating those
[00:09:49] Sam Louis: characters? I'll try and do live credit here because that is something that we've really wrestled with a lot of time.
[00:09:56] And she is constantly on the [00:10:00] kind of forefront within that industry of really. Working out and then finessing and honing what that does mean. But I think w what it is for us, it's where an intrinsic part of your business model something that happens as a core byproduct or a core focus of you doing your job, creates value over and above? Has a, an, a, a positive impact on the world over and above just generating cash.
[00:10:28] We've loosely been guided by the UN sustainability guidelines and sustainable development guidelines. But where we sort of differentiate it slightly is that notion that, you know, it has to be. Fundamentally part of what you're doing. So if you are making trainers and for every pair of trainers that you sell, you give a pair of trainers for free to underprivileged communities, um, that would not pass the test with us because as soon as your [00:11:00] cashflow gets tight, as soon as things get difficult, that is going to be the first place that you look to cut weight.
[00:11:06] Do you think
[00:11:06] Hector: some of the, there's still a conflict between impact investing and. Investing for great returns and not necessarily that in and of itself, but
[00:11:18] Sam Louis: in
[00:11:18] Hector: the founders who you attract. If you pitch yourself as an impact investor, I'm always interested to understand whether, impact investors have a hard time convincing the very best founders to take their money over, you know, a well-known investor who doesn't pitch themselves as an MBA.
[00:11:39] Sam Louis: Interesting question. I think it very much depends on who you talk to. Adventures, for example, I think have really, really successfully presented what their mission is, what, what kind of vision they are aligned with.
[00:11:52] And I think that that has. Been a huge part of their ability to very quickly become kind of, uh, a desirable name for your cap table.[00:12:00] And I think again much like on the company side of it for the investors, it's it's have you actually built a genuine alignment with those values? Because I think if you have the people, people respect that and they feel like it's a valuable addition to their cap table.
[00:12:17] So I think. Great. Investors will always have a huge amount of Pope.
[00:12:23] And I think new investors who are really focusing on, particular niches or particular, kind of value statements if done well, I think they will continue to kind of grow in their credibility and how desirable they are to founders But it has to be backed up it's investing, it's not charity.
[00:12:44] And I think the same is true for investors. It's all well, and good to say that you have values and principles, but if underneath it, you just don't have the same experience and you can't provide the same core, financial value in terms of, you know, [00:13:00] I'm a seasoned investor.
[00:13:02] I'm going to sit on your board. The good intentions in the world are not going to make you attractive to a founder.
[00:13:08] If Sequoia comes knocking and says , James, as you well know, people building funds are founders too, they're going through that same process and you have to get your product market fit. You have to work out who your core demographic is and what it is that you're actually pitching them.
[00:13:23] James: Yeah, it's a really interesting discussion. We got sure we can fill hours with, to be honest. Some just in terms of w we want to get to know you a little bit better.
[00:13:34] So there's a, there's a sort of game we play with gas, it's the business lunch guests game. If you had to go for a business lunch with three people, And spend an hour with them, pick that brains. Who would that be?
[00:13:47] Sam Louis: Wow. Interesting. What on the spot? First people coming to mind, I would say Ray Dalio, Ray Dalio is a very successful, investor over in the states. He [00:14:00] built one of the most successful hedge funds in the world. Pretty much from the ground up, over the course of like 50 or 60 years and having stepped back from investment, he has now work to kind of bring all of his principles, both in business and investing in life and really start
[00:14:17] sharing them with the world. He's in the later stages of his life and he talks a lot about wanting to kind of give back all these things that he's learned. His company was kind of famous. He described as like the intellectual SAS, where they have this real. Honesty principle where, you know, everyone tells the truth to everyone all the time and breaks and reviews people in lifetime and meetings and things.
[00:14:46] So he's really broken down the formula that he's worked on over the years, that's been successful for him and how he's applied that and those principles. Invested for me that managed to bridge life and [00:15:00] investment and kind of work out where those two things meet. Um, James, I think is something that you do really well of, of not just getting caught in like your investment tunnel vision when you're investing in things, you are making bets on what is going to happen in the world and the people who can better Understand how they feel those two things come together and actually use it to produce, insights and an investment thesis is I think fascinating.
[00:15:25] Okay. Christopher Hitchens, recently died because to go. Um, but he was a feathery, sharp writer and kind of opinion list if that's a word. And again, I think someone who had an incredibly interesting view of the world and saw the world very clearly and then was able to actually articulate that view.
[00:15:50] Very well, and I'm very, very funnily in my opinion. Um, and I think, yeah, again, for both people for the same reason really is just [00:16:00] spent, I think, spending time around people like that who build. Worldviews and, and constantly refine and update them and kind of report not, not just refine the batch, we act on them.
[00:16:12] Um, I think a fascinating, and then I suppose, I mean in the interest of time, I'm actually just going to be really boring and Pitt Richard Branson.
[00:16:22] Because he just seems to have kind of cracked the whole notion of like being happy and being successful. And I know people who work with him and he does work. He does work very hard and he does work people very hard. So I think a lot of it is like, you know, that there's kind of two sides to the story.
[00:16:39] But I also seem to hear that he is the guy that. Has done very well and genuinely does just seem to be having a great time. Um, so yeah, I think it's half an hour to pick his brain on, on how that actually works and where you draw the line and, and how you can delegate well enough that you can really have your cake and eat it, I [00:17:00] think would be, would be pretty fascinating.
[00:17:02] Hector: There are going to be some big ideas thrown around at this potentially very
[00:17:06] Sam Louis: intense dinner party. It's going to be big. What are you serving Sam? What am I serving? you're like probably just like nice European. Nice European fair. You know, those kinds of the stories, things that you go to, and you're not, not really sure where this is meant to be. It's pretty good. Usually some like sushi. Yeah. They're going to love it. Absolutely. Yeah. Those, those three, I feel like it's right up their alley.
[00:17:39] It's not about the food, you know, if anything, the food should be minimal just so that the chat can be maximum.
[00:17:46] James: Yeah. That definitely be an order of spirituality around that table. I think,
[00:17:52] Sam Louis: I think so. Yeah.
[00:17:54] James: Um, some, so we're a little bit short of time, so we've just sort of scraped the [00:18:00] surface really on, on some of the topics we would like to.
[00:18:03] Dived into, but, um, it's been great to chat and, , yeah. Thank you so much. And good luck with everything that you guys got on. There's a lot of spinning plates, but I think it's really exciting to have an organization like you guys that is looking to, have an impact at each stage in the, in the growth process as.
[00:18:22] These companies go from cradle to grave and hopefully become unicorns along the way and all of those lovely things. So, um, yeah. Thank you so much. And, we wish you the best with it.
[00:18:31] Sam Louis: Thank you very much. It's been an absolute pleasure. Thanks. Likewise. All the best guys.
[00:18:37] Great. Chatting to Sam. Really interesting guy could have spoken to him for hours. And, yeah, if you're looking to raise money at any stage of your company, go and check him out on LinkedIn and get in touch with him.
[00:18:50] This week startup spotlight is not cheap. Narci is a homeware marketplace that connects buyers and sellers of everything home, [00:19:00] where it's been dubbed the D pop of Homer and given deep ops, recent acquisition by Etsy. It seems to be in a very good place to become a big, big company. They've recently raised a large pre-seed round from top angel investors.
[00:19:17] And are growing go and sign up today@narci.com and reserve your handle. Thanks again for listening, please subscribe on your favorite podcast platform and catch us next time.