20VC: Turning $16.5M into $2.1BN; Lessons from the Greatest Venture Investment in European History: UiPath | Why VC is Not Being Commoditised | Why Price Does Not Matter | Lessons on Loss Ratio, Selling and Signalling with Cem Sertoglu

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch

Cem Sertoglu is one of the great venture investors of the last decade. Cem is famed for writing the first check into UiPath and over several rounds turning $16.5M into $2.1BN. Cem recently started Bek Ventures, a $250M fund that was 3x oversubscribed.

In Today’s Show with Cem Sertoglu We Discuss:

1. Has Venture Capital Been Commoditised:

• Why does Cem believe that VC has not been commoditised?

• Why does Cem believe many VCs today are not even VCs anymore?

• How does Cem advise founders who have offers from large multi-stage firms? What questions should they ask them pre-working with them?

• How do the best founders select the VC they choose to work with?

2. Price, Reserves, Loss Ratios:

• Why does Cem believe that price does not matter?

• How does Cem approach reserves and reserves management?

• What does Cem know now about reserves that he wishes he had known when he started investing?

• Does Cem care about loss ratio? Does he do scenario planning when making investments?

3. Making $2.1BN on UiPath:

• How did Cem meet Daniel for the first time? Was it obvious he was incredible?

• Why did they only write a $1M check and not take the whole round with $1.5M?

• Why did 40 of the best investors in Europe all turn down UiPath for the Series A?

• What did doing the bridge round for UiPath teach Cem about reserves?

• When was it obvious UiPath was going to be a mega hit?

• How did they continue to concentrate capital with each round?

• When did they first start to sell shares in UiPath?

• What was their approach to the selldown of their position?

• When the company IPO’d, how much of it did they have?

4. AMA with One of Europe’s Best:

• Does signalling exist? How does Cem advise founders on this?

• What has been his biggest loss? How did that change his mindset?

• What has been Cem’s biggest miss? What did he not see?

• Why does Cem always believe you should manufacture arguments with founders before investing?

• Why does Cem believe a high GP commit can actually misalign the GP and the LP?