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Stephan Heller
Experienced Tech-Entrepreneur & Investor
Stephan Heller is a seasoned tech-entrepreneur and investor with over 15 years of experience in the entrepreneurial landscape. He has co-founded five companies, including a prominent deep-tech startup accelerator and a successful VC fund of funds. Stephan's dedication lies in adding substantial value and building lasting relationships with entrepreneurs, corporates, and families. He actively guides stakeholders through the startup landscape using technology and hands-on experience to enhance their businesses and investment strategies. Prior to his ventures, he honed his skills at renowned companies like Groupon and Rocket Internet in London, where he played crucial roles in driving early success and growth across Europe. Stephan's professional journey includes roles as an investment analyst at Waterland and as a management consultant at Roland Berger, giving him a profound understanding of market dynamics and strategic insights. His international exposure began during his studies at BMW in Tokyo and UBS in London. Raised in a family business environment in Munich, Stephan currently resides in Abu Dhabi, drawing inspiration from his experiences in various global cities like London, Hong Kong, Tokyo, Berlin, and Munich. He is enthusiastic about establishing meaningful connections and contributing to shaping the future of innovation and investment.
Highlights
🚀 London Tech Week is back! 🌟
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Shameless self-promotion 😉 Joke aside, I'd love your feedback on how to select and invest in emerging managers. Check out my latest podcast with EUVC and Andreas Munk Holm on this topic!
I'm keen to hear your thoughts on investing in emerging managers versus established "tier-1" funds. At AlphaQ Venture Capital, we balance our strategy by investing in both, and here’s a fun fact: emerging managers turn out to be the outperforming gems in our portfolio. 🤩
🔍 Why Emerging Managers? Fresh Perspectives: Each year, about 2,000 funds start globally. A decade later, the top decile performers regularly include over 70% of these once-emerging managers. Data-Driven Decisions: We're highly data-driven at AQVC. While we learn from the past, we're actively hunting for future success patterns. Challenging the Norm: Is the emphasis on established managers creating an illusion that they are always the better investment? Especially if the real success of a vintage can only be determined over a decade later and by then the emerging funds from the past are the established funds of the day?
📊 By the Numbers: Vast Exploration: Our Discovery platform tracks around 4,000 GPs. We engage with 40-50 funds weekly, diligently logging every interaction. Market Realities: Most funds we meet claim impressive early returns on paper, but long-term sustainability varies significantly. Survival Rate: Despite many claiming early success, 62% never raise a subsequent fund, and 12% fully disintegrate due to various challenges.
🤔 What's Easier? Going with the Known: It's tempting to stick to the 5-10 well-known names. Adding new managers usually happens only if they match a 'brand name wishlist.' Venturing into the New: Selecting 10-15 emerging funds annually from a pool of 2,000 is tough, but it’s crucial for fostering innovation, diversification, and better outlier returns.
At the end of the day, these are different products for different clients, each strategy tailored to specific LP needs and risk appetites. However, I argue that paying a double layer of fees should involve some real work — including investing in emerging managers. To me, the "old school" approach of some established fund of funds merely selling access doesn't justify the fees and associated risks with venture capital. 🌐💙
