26 September 2023
Why This Investor Cold Walks Into Offices & Doesn't Build a Personal Brand – Alex Finkelstein, Spark Capital
Listen to episode
About this episode
Alex Finkelstein is a General Partner at Spark Capital and has names like Twitter (X), Discord, Snap, and Slack in his fund's portfolio. But what sets his investment approach apart from other VCs? And why does he deliberately avoid personal branding while everyone else focuses on reach and visibility?
Don't View Everything Rationally: The Emotional Factor in Founding
One key insight from the conversation: founders shouldn't approach everything purely rationally. While data and facts are important, intuition and emotional intelligence play a crucial role in entrepreneurial decisions. This balance between head and heart can make the difference between a successful startup and a failed one.
How Far Does Alex Go for the Perfect Deal?
Alex Finkelstein takes unconventional paths to win the right deals. His methods extend to "cold walking" – he literally walks cold into offices to connect with potential investment targets. This direct, personal approach sets him apart from many other VCs who primarily rely on digital channels.
When convincing companies like GetYourGuide that Spark Capital really wanted, Alex focuses on authentic relationships and demonstrates genuine value-add. It's not just about investing money, but positioning himself as a strategic partner who will help the company grow long-term.
Work and Life Approach for Maximum Success
How does a successful VC structure his time to succeed in all areas? Alex has developed clear frameworks that help him excel both professionally and personally. His working style is designed to build deep relationships with founders while maintaining a balanced life.
A crucial aspect is his ability to recruit executives for founders who he believes are the right fit for their respective companies. This matching competency is essential for portfolio company success.
Hiring in Seed Stage: Senior vs. Junior
A critical question for every startup: How senior or junior should you hire in the seed stage? Alex shares his experience on when it makes sense to bring in experienced executives and when younger talent is the better choice. This decision can significantly influence a startup's development trajectory.
Building a Successful VC Firm Without Personal Brand
While the venture capital world increasingly focuses on personal branding and reach, Alex pursues a different approach. Instead of building social media presence, he concentrates on what matters: genuine relationships with founders and substantial support in building their companies.
This strategy proves there's another way. While many VCs invest time and resources in building their personal brand, Alex demonstrates that deep industry expertise and authentic relationships are more sustainable than quick reach.
What Newcomers Should Know About Building Startups
For founders who only joined during the startup boom, Alex has clear messages: building successful companies requires more than just following the latest trends. Fundamental principles like customer focus, solid business models, and strong teams remain crucial – regardless of current hype.
Spark Capital's experience with companies like Twitter, Discord, and Slack shows that sustainable success is built on solid foundations, not short-term trends.
The Behind-the-Scenes Reality
Alex provides insights into how he structures his work and life to achieve success across all areas. His approach involves clear prioritization and systems that allow him to maintain deep engagement with portfolio companies while preserving personal time and relationships.
This balance is crucial for long-term success in venture capital, where burnout is common and authentic relationships are the foundation of everything.
What Really Matters in Building a VC Firm
Building a successful venture capital firm requires more than following conventional wisdom about personal branding and social media presence. Alex's approach with Spark Capital demonstrates that focus on fundamental value creation – finding great companies, supporting them effectively, and building lasting relationships – trumps flashy marketing tactics.
Conclusion: Authenticity Beats Reach
Alex Finkelstein's approach proves that in venture capital, authentic relationships and genuine value creation matter more than a large personal brand. His success with Spark Capital shows: sometimes the direct, personal path – even if it means cold walking into offices – is more effective than any digital strategy.
Unicorn Bakery
Your brand. 600+ episodes. Thousands of founders.
Reach Germany's most ambitious founders as a podcast sponsor.
Become a sponsor