Marc Schröder from MGV on VatorNews podcast

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Here are some takeaways:

– Since MGV focuses on seed to seed-growth (aka seed extension or post seed) startups, the founder is an essential factor in their investment decision. MGV’s founder-vetting process involves three meetings. The first setting is typically at their SF offices, followed by a dinner and then a walk. The idea is to engage with the founder in different settings. Post-COVID, MGV can still get to know the founder via Zoom, especially when they see the founders engage with their personal environment. One question they ask themselves is: Would I let this person into my home?

– MGV invests in 8-10 deals a year and invests an initial $250,000 to $500,000. For $250,000, the startup is pre-product, pre-revenue; for $500,000, the startup has product-market fit. The VC does not lead deals so does not take Board Seats.

– MGV’s value-add is helping startups build sales to qualify for a Series A round. The benchmark for Series A for B2B SaaS is $1 million ARR and how fast that ARR was achieved.  
– MGC is agnostic to vertical, but has a focus on B2B, fintech, insurtech, digital health.  
– Mental health is a space MGV has invested in with one of its first investments in Modern Health. Go to 12:35 on the tape for more on Marc’s thoughts on mental health and Modern Health. 
– MGV believes the insurance industry is ripe for disruption largely because new insurance companies know when to target consumers at the right moment and because startups are targeting younger more tech-savvy consumers. These companies (Oscar, Clearcover, Lemonade) may not be profitable now. But they will be. These startups also have better metrics such as TAC/LTV (traffic acquisition costs/lifetime value) than incumbents because they’re doing a better job targeting the customer at the right time.
– MGV has an expertise in B2B sales. At 30:02, Marc goes over some of the best practices and also the common mistakes startups make around sales. One mistake is not having the entire team aligned around what they’re selling!