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

20VC: How To Assess Risk and Value Creation, Why It Would Be Better If VCs Had Smaller Portfolios & How To Optimise Internal Decision-Making with Misha Esipov, Founder & CEO @ Nova Credit

Mar 20, 2020

Misha Esipov, Founder and CEO of Nova Credit, shares his journey from investment banking at Goldman Sachs to revolutionizing international credit access. He discusses how his background shapes his views on risk and value creation, emphasizing the importance of solid unit economics. Misha raises over $69M by fostering genuine relationships with investors. His vision extends beyond just credit, aiming for inclusivity and improved systems for newcomers to the U.S. through innovative consumer lending solutions.

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ADVICE

Authentic Fundraising

Be authentic and transparent in fundraising conversations with VCs.
Address challenges head-on and discuss mitigation strategies openly.

ADVICE

VC Improvement Areas

VCs should make fewer investments and spend more time with each company.
Deeper operational understanding allows VCs to provide more effective guidance.

ANECDOTE

Admirable VC: Matt Harris

Although not an investor in Nova, Esipov admires Matt Harris of Bain Capital.
He appreciates Harris's wisdom, long-term perspective, and intellectual humility.

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Misha Esipov is the Founder & CEO @ Nova Credit, the startup that allows you to use your international credit history to apply for credit cards, apartment rentals, loans and more. To date, Misha has raised over $69M with Nova from some of the best in the business Kleiner Perkins, Index, First Round, Pear and Core Innovation Capital to name a few. As for Misha, prior to changing the world of credit history, he spent over 5 years in the more traditional world of finance including time at Apollo in the world of private equity and then also Goldman Sachs in the world of investment banking. If that was not enough, due to the incredible impact Nova is having, Misha also sits on the board of World Education Services.

In Today's Episode You Will Learn:

1.) How Misha made his way from the world of investment banking and private equity with Goldman and Apollo to changing the way we think about international credit with the founding of Nova?

2.) How does Misah think about and asses both risk and value creation? How did Misha's time at Goldman Sachs influence his operating mentality and how he thinks about the value of data today? Why does Misha find the growth at all costs and revenue later mindset challenging? What core fundamentals around unit economics did Misha establish early with Nova? How does Misha advise founders when it comes to unit economics?

3.) Misha has raised over $69M from some of the best, how did Misha find the process of fundraising? Where specifically does Misha believe his investors provide outside value? What is the optimal way to use an investor in the recruitment process? Where does Misha believe investors could do better and improve? How does Misha advise founders when it comes to manager selection?

4.) How does Misha manage the psychology of being CEO? How does he deal with the shit hit the fan moments? How has his role changed over the last 3 years? What elements have been the most challenging to learn and scale?

5.) How does Misha advise founders on building a diverse pipeline of recruitment candidates from day 1? Why does Misha believe that no recruitment firm can solve for diversity? What is his process as a result for ensuring a truly diverse team? What works? What does not? How does Misha building a culture of accountability? How does Misha think about optimising internal decision-making?

Items Mentioned In Today's Show:

Misha's Fave Book: Mastery (The Robert Greene Collection)

As always you can follow Harry, The Twenty Minute VC and Misha on Twitter here!

Likewise, you can follow Harry on Instagram here for mojito madness and all things 20VC.

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