MGV invests in 8-10 B2B SaaS businesses per year and offers sales expertise

Bambi Francisco Roizen interviews Marc Schröder, Managing Partner of MGV.

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Here are some takeaways:

– Since MGV focuses on seed-to-seed growth startups (also known as seed extension or overseeding), the founder is a key factor in their investment decision. MGV’s founder review process consists of three sessions. The first take is usually in their SF offices, followed by dinner and a walk. The idea is to get in touch with the founder in different environments. After COVID, MGV can still get to know the founder via Zoom, especially when they see that the founders are concerned with their personal environment. One question they are asking is: would I let this person into my house?

– MGV invests in 8-10 deals per year and initially invests $ 250,000 to $ 500,000. For US $ 250,000, the startup is pre-product, pre-sales; For $ 500,000, the startup is suitable for the product market. The VC does not conduct any business and does not occupy any seats.

– MGV’s added value helps startups build sales in order to qualify for a Series A round. The benchmark for Serie A for B2B SaaS is $ 1M ARR and how quickly that ARR was achieved.
– MGC is agnostic to vertical but focuses on B2B, fintech, insurtech and digital health.
– Mental health is an area MGV invested in with one of its first investments in Modern Health. For more information on Marc’s thoughts on mental health and modern health, see the tape at 12:35 pm.
– MGV believes the insurance industry is ripe for disruption, largely because new insurance companies know when to target consumers at the right time, and because startups target younger, tech-savvy consumers. These companies (Oscar, Clearcover, Lemonade) may not be profitable right now. But it will be. These startups also have better metrics like TAC / LTV (Traffic Acquisition Costs / Lifetime Value) than established companies because they address customers better at the right time.
– MGV has expertise in B2B sales. At 30:02, Marc goes over some of the best practices and also the most common mistakes startups make when selling. One mistake is that not all of the team is focused on what they are selling!

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