Venture Voices | Octopus Ventures
For our final Venture Voices episode in 2024 we were lucky enough to be joined by Laura Willming, Head of Talent at Octopus Ventures. Octopus Ventures are a London-based, tech VC firm with a focus on companies at various stages of growth. They manage multiple funds, that support pre-seed through to Series B+ businesses. Their investments span a wide range of industries, including Fintech, Healthtech, Climatetech, B2B software, Biotech, Deeptech, and consumer companies. Despite the diversity in sectors, the common thread in all their investments is the people—they back founders and businesses with missions to make a positive impact on the world.
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Laura Willming oversees the portfolio team at Octopus Ventures, which has two main components. One is the people and talent function, which she leads, and the other focuses on corporate ecosystem development. The portfolio team partners closely with both founders and investors, addressing the people strategies and challenges that naturally arise in early-stage and growth companies. The team consists of six members, and their work ranges from stepping in as interim heads of people/talent to providing expert advice and support at a moment’s notice. Additionally, they build programs that leverage the collective knowledge and experience from the over 180 companies they actively engage with each year.
Laura began her career in user research, focusing on people-centred roles within the tech industry. Her journey started at Harry’s, a startup in New York, where she joined early on when the team was just around 15 people. During her time there, she witnessed the company’s growth, scaling from 15 to a few hundred employees across multiple locations worldwide. After that, she transitioned into a people and talent role before moving into venture capital at a fund in New York. A few years later, she relocated to London and joined Octopus.
Thanks for joining us Laura. It would be great to learn more about your time at Harrys. During that rapid growth, how did the company culture evolve and are you seeing similar patterns now with the portfolio companies you're supporting?
Are you noticing any common pain points across founders in Octopus Ventures portfolio, regardless of their stage?
For early-stage founders, this task is particularly challenging. They need to attract top talent, which is inherently difficult due to the limited pool of exceptional candidates. They often need to meet many people to find the right fit and then convince those candidates to take a risk by joining a nascent company. Even if a founder has strong conviction about their mission, they must effectively communicate this to potential hires, making it compelling enough for them to commit their careers to the startup.
This process is not only challenging but also time-consuming. Founders are typically incredibly busy, so finding the time to meet numerous candidates, sell them on the vision, and handle all other responsibilities can be a significant hurdle.
Do you observe any specific functional areas where founders tend to face challenges at different stages of growth?
As the company scales further, new challenges arise, such as ongoing employee development, progression, and designing compensation models to retain top talent. This is especially important for early team members whose experience and knowledge are crucial. These are just a few examples of the evolving issues that founders face as their companies grow.
When discussing the C-suite and senior hiring with founders, do you ever find their approaches surprising? Since many founders are handling senior hires for the first time, how do they typically engage with your advice?
Founders are typically open to guidance, but they are incredibly busy. For example, I often suggest that if hiring is a top priority, they should dedicate at least one day a week to recruitment. However, fitting this into their packed schedules can be a struggle. Despite these challenges, the willingness of founders to engage with and consider new approaches is something I truly value.
Given your experience, do you think dedicating a full day each week to recruitment is equally crucial for a Series A business that's scaling rapidly?
Andrew: It’s fascinating how hiring a B player instead of an A player for a key role can have significant repercussions. Whether due to bad luck or a lack of commitment in the hiring process, a subpar hire often results from rushing to fill a position rather than thoroughly assessing candidates. We know that B players tend to hire more B players, leading to a decline in overall quality. When a poor hire is made at the C-suite level, it can create a ripple effect through their direct reports, significantly impacting the entire team. It’s a situation we often observe, and sometimes there’s a nagging sense that it could happen if the hiring process isn’t handled with the necessary care and attention.
A few months ago, we hosted a panel with several CROs who shared their experiences and advice on hiring. One of them pointed out that a small concern you have today can become a major problem six months down the line. This resonates with what you mentioned—often, we have an intuitive sense when a hire isn’t quite right, but pressures from the board or a desire to move on from a prolonged search can lead to rushing the decision.
Senior hires typically require three to six months to find, an additional three to six months for them to transition from their previous role, and then another six months to determine if they’re a good fit. If you delay this process, you could end up with a year or more before realizing that the hire isn’t working out, and then you’re back to square one. In an early-stage company, this means you might spend two to three years dealing with the ramifications of a poor hire, which is a significant amount of time. Each new hire is an opportunity to bring in someone who could be a game changer for the team, so missing out on this opportunity due to a hasty or flawed hiring process can have a profound and negative impact.
How do investors on the board respond if a founder experiences two or three consecutive poor hiring decisions? Additionally, from your perspective, what constitutes a well-executed hiring process for one of your startups?
As for a successful interview process, it should involve a thorough exploration of a candidate's background, including their past roles and achievements, to determine whether they've been A players or B players. Implementing role-specific exercises can help assess their core skills in action. Additionally, thorough reference checks are essential, particularly for senior positions, to validate their suitability and past performance.
Do you ever engage with founding teams or the senior leadership team before making an investment?
What feedback do you receive from founders about what they value most in Octopus Ventures’ offering when they choose to partner with you?
Founders appreciate that we don’t just passively send candidates their way. Instead, we work closely with them to understand their goals, team structure, and specific hiring needs. Our team, including myself, consists of experts with deep domain knowledge in areas such as Deeptech, Biotech, Fintech, B2B software, consumer companies, and Healthtech. This allows us to offer valuable insights and support based on extensive experience, ensuring a tailored and efficient approach to their hiring needs and business models.
Andrew: Additionally, with a portfolio of 150 businesses, you have extensive data on how specific hires have performed across various stages and sectors. This wealth of information provides valuable insights into what works and what doesn’t, especially in fields like Healthtech.
Moreover, founders often find the role quite lonely, and it’s rare for them to have someone genuinely interested in their revenue model and team structure to discuss ideas with, unless they have a chief people officer or non-executive director. Being able to bounce ideas off someone who understands their unique challenges can be incredibly cathartic and supportive for them.
Absolutely. We aim to build relationships based on openness and trust. While our role is to work from the investor side, we recognize that at the core of everything are people with their own challenges. We strive to be as supportive as possible, which includes maintaining a high level of confidentiality in our conversations.
Can you identify any specific characteristics or elements within a founding team or senior leadership team that might be considered red flags from a people perspective, potentially affecting investment decisions?
When senior team members openly express conflicting views, such as one person advocating for a particular approach while another disagrees, it signals a serious alignment issue. This kind of disunity at the top inevitably trickles down through the organization, leading to confusion and inefficiency.
I often picture this like forces in physics: if all the arrows are pointing in the same direction, progress is swift and effective. However, if they’re scattered and misaligned, it creates chaos and frustration, hindering overall progress and performance.
Do you think that the ratio of that happening in a fully remote business is higher than a hybrid or office based business?
In terms of trends within high-performing portfolio businesses, are there any standout practices or characteristics from a people, talent, or operational perspective that you find exceptional?
As companies move into a growth phase, they need to shift to a high-gear focus on execution and delivery to ensure startup growth. This requires a clear understanding of their goals, a well-defined strategy, and a team that holds each other accountable. This phase is distinct from the early stage, where the emphasis is on finding product-market fit and experimenting with different approaches. During growth, the need for clarity and a strong work ethic becomes even more critical, and the ability to adapt and execute effectively is what drives success.
What’s your perspective on hiring a CFO for founders? How important is this role, and what impact have you seen it make on a company’s success?
What do you find works best in terms of board dynamics or getting that immediate support?
How does your team currently manage the urgency of communication from your portfolio, do you have a system in place?
I noticed that you were a founder in the past. Are there any temptations or plans to start your own business again in the next ten years?
If you could recommend one or two books to founders, which ones would you choose and why?
And the last question, If there’s one additional benefit or flexible arrangement you’ve seen portfolio businesses implement beyond salary, bonuses, and share options, what tends to be especially valued and effective for teams?
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