EUVC #146 Michiel Kotting, Northzone
Jan 17, 2023
Michiel Kotting, Partner at Northzone and former founder who built and exited multiple tech companies, shares his journey from operator to investor. He discusses Northzone’s distributed model and how culture keeps them relevant to founders. He covers fund strategy shifts, new sector focus like digital health and AI, and how to navigate downturns and portfolio timing.
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Early AI Startup With Top Advisors Led To Sale
- Michiel recounts joining a startup in 1999 building AI sales software, attracting top advisors like Ed Feigenbaum and Rajiv Motwani.
- The company grew to ~50 people and was sold to shopping.com, teaching him fundraising and execution lessons.
From 104 Pitches To An Exit
- Michiel describes pitching to 104 VCs in 1999 before raising and then selling his AI sales software to shopping.com after scaling to ~50 employees and clients.
- He later joined shopping.com's management, experienced a turnaround to profitability and IPO, then acquisition by eBay, illustrating brutal early-stage lessons.
Founder Experience Makes You Empathetic But Overoptimistic
- Former founders make empathetic investors who understand loneliness and people development, which helps in mentoring founders through hard phases.
- But operators must resist over-optimism and avoid doing founders' day-to-day work; leverage is hiring or connecting to the right talent.
