**Founder-Market Fit and the Advantage of Operators Turned Founders**
Founder-market fit is a crucial factor in the success of a startup, and those who have experience as operators in the industry have a significant advantage in finding that fit. According to data, a lack of expertise and business acumen in founders often leads to failed venture capital investments.
This principle also applies to operator venture capitalists (VCs), which are firms typically launched by former startup founders. While there is no definitive proof that operator VCs make better investors, recent research suggests that founders and operators who become VCs are more successful at backing companies than traditional investor VCs.
However, the adoption of operator VCs is less widespread in Europe and Africa compared to Silicon Valley. In these regions, only 8% of VC firms are led by former operators, while nearly half of VC firms in the US are led by operators. OpenseedVC aims to change this by applying the operator VC model in Africa and Europe with a new $10 million fund.
**OpenseedVC’s Vision: Supporting Operators with Funding and Community**
OpenseedVC was founded with a clear vision: to invest early in experienced operators who are eager to launch their technology companies. The firm not only provides capital at the earliest stages but also offers support from a community of seasoned operators, comprising more than 50 individuals.
According to OpenseedVC’s General Partner, Maria Rotilu, the firm focuses on enhancing the operator network in four key areas: software engineering, product development, go-to-market strategy, and people and talent management. By leveraging the firsthand experience of these operators, OpenseedVC aims to address common challenges faced by operators who are transitioning into building their own technology companies.
The individuals in OpenseedVC’s operator network are mostly people Rotilu has worked with or received referrals for. Some of them are also limited partners in the fund. In addition to operators, the firm’s LPs include founders and professionals from traditional and tech businesses, as well as high-net-worth individuals across Africa, Europe, and the US.
**Investing in Pre-Seed Startups in Africa and Europe**
OpenseedVC, based in London, plans to invest in at least 60 startups over the next five years. The firm focuses on making pre-seed investments, particularly in the early stage of pre-seed. Unlike traditional VCs, OpenseedVC does not require a founder to have a lead investor before investing.
The firm is interested in specific founder profiles within its broader operator-focused lens. It seeks domain experts who are operators at high-growth tech companies, including first-time founders, as well as second-time founders who have built and exited a startup.
OpenseedVC has already made two investments. One is in a stealth U.K.-based AI-enabled supplier dispute resolution software, and the other is in Intron, a speech-to-text transcription model for underserved accents, starting with Africa.
**The Journey of Maria Rotilu: From Operator to Investor**
Before launching OpenseedVC, Maria Rotilu had experience as an operator in various roles, including country manager at Uber and general manager at Branch in Nigeria. She helped scale both tech companies to millions of users. She later pursued an MBA at Oxford, where she served as the managing director of the Oxford Seed Fund.
During her MBA, Rotilu interned at Hustle Fund, an early-stage fund in the US, where she gained experience investing in startups across different regions. She then joined Octopus Ventures as a principal and fund manager of First Cheque Fund, the firm’s £10 million early-stage fund for European startups.
However, Rotilu realized the need to focus more on Africa, a market where she had made several angel investments throughout her career. This led her to launch OpenseedVC, as she saw an opportunity to develop a strategy that suited her experience as an operator and investor across Africa and Europe.
**A Focus on Diversity and Female-Led Startups**
The increase in the number of female-led VC firms globally is a positive trend, although it remains challenging for women, especially women of color, to seek funding or raise a fund. However, as more women participate in venture investing and receive support from LPs and firms, funding for female-led startups is expected to increase.
OpenseedVC is actively looking to support startups led by female operators. The firm believes in having a diversified portfolio that includes diversity across geography, industry, and gender. It aims for a 50/50 balance in co-founding teams, applying a gender lens to its portfolio strategy.
By focusing on diversity and supporting underrepresented founders, OpenseedVC aims to create a more inclusive startup ecosystem that benefits all stakeholders.