Ep167 – Justin Lipman (Partner – EVP) on metrics, focus and valuations

The Startup Playbook PodcastInsights and lessons from the world's best entrepreneurs and investors Twitter Facebook YouTube Instagram Ep167 – Justin Lipman (Partner – EVP) on metrics, focus and valuations July 14, 2022 rohitbhargava Podcast My guest for Ep167 of The Startup Playbook Podcast was Justin Lipman, Partner at EVP. Justin started his career in Finance working inside organisations like Credit Suisse, EY and Investec before taking the plunge to join EVP in the very early days of the Venture Fund. The team spent the first year advising startups before raising $25M for their first fund. Fast forward 7 years later and EVP now has over $250M in funds under management. Unlike other funds that open their investment mandate as they grow, EVP has doubled down on it’s focused investing approach by only investing in B2B software and marketplace businesses. This focused approach has allowed them to build a fantastic portfolio which includes the likes of Siteminder, Deputy, Ignition and Shippit. In this episode we covered a range of topics including: EVP’s unique investment approach to investing focus and portfolio constructionThe metrics and benchmarks that EVP tracks when making investment decisionsJustin’s views on whether the power law is as powerful as it was a few years agoManaging imposter syndromeStartup valuations& much more! Timestamps  03:31 – Justin’s early career and starting EVP06.53 – Transitioning from a large corporation to small VC fund09:18 – Scrappy early days of EVP11:42 – The ways EVP has changed, or stayed the same, as it has grown15:20 – The decision to specialise in early stage B2B software investing, rather than diversifying 19:10 – How EVP think about portfolio construction 26:26 – The importance of data in EVP’s investment approach32:48 – Specific metrics that founders in B2B SaaS startups should keep a close eye on38:48 – Benchmarks for expected win rates for sales in early stage companies40:06 – Advice for founders building companies in the current economic climate44:38 – How founders should approach valuation discussions with investors47:43 – Imposter syndrome, and strategies to handle or mitigate it50:54 – Navigating the founder-investor relationship Our partners A big thank you to Matt de Boer, Dan Szekely and William On for their help with this interview. Also a big thank you to our partners for this episode. Lawpath Lawpath’s Legal Advice Plan gives you access to lawyers on demand for one low monthly fee. Create legal documents, sign online and have a lawyer on-call to help you through any legal need for a fraction of the cost.  Lawpath has helped Australian businesses save over $100 million in legal fees, and are offering Startup Playbook listeners up to 20% off their most popular legal plans. Visit lawpath.com/playbook for your exclusive discount and discover an easier way to get your legals sorted. Scendar  We’re Scendar, an accounting and advisory practice better described as Finance as a Service (FaaS). We’re focused on founders, funders and startups. Clients that are ever-changing and adapting. We like fast movers. And as you might have guessed, we’re not your basic accountancy. We can take care of tax and the books whilst building a syndicate fund and a multimillion dollar exit strategy.  At Scendar, we’re empowered by our client’s potential. Find out more at Scendar.com Dovetail Studios  Dovetail Studios operates a venture studio and VC to transform ambitious ideas into unstoppable businesses. On top of being a renowned product development partner for startups like Afterpay, they also operate a VC fund to invest in early-stage companies that go through their venture studio program. So if you’re a non-technical, early-stage founder looking for a talented team to help supercharge your success, check out dovetailstudios.com Links Mentioned  Chris’s Links  TwitterLinkedInJustin’s profile on Letter of IntentJustin’s email People mentioned Howard Leibman – EVPLes Szekely – EVPDaniel Brand – SnapReviseWilliam On – ShippitRob Hango-Zada – ShippitMatt de Boer – Athletic VenturesJames Leathem – VendorPanelKal Jamshidi – LOI Companies mentioned: EVPCredit SuisseSnapReviseSiteMinderHotel ClubShippitDeputyRezdyAthletic VenturesHnryA16zVendorPanelLetter of Intent Feedback/connect/say hello: [email protected]@RohitBhargava7 (Twitter)/rohbhargava (LinkedIn)@rohit_bhargava (Instagram)My Youtube Channel Credits: Music: Paycheck Other channels: Don’t have iTunes? The podcast is also available on Spotify, Soundcloud & Stitcher Audio Player. Find all links to the podcast here. https://traffic.libsyn.com/secure/startupplaybook/Ep167_-_Justin_Lipman_Partner_-_EVP_on_metrics_focus_and_valuations.mp3Podcast: Play in new window | Download | EmbedSubscribe: RSS admin January 1, 2014 Reply Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat admin January 1, 2014 Reply Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat admin January 1, 2014 Reply Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. 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