Amsterdam, 19 November 2021: No Such Ventures operates differently from other investment funds: no strict choice between venture capital or private equity, an active role of the investor base, etc. This approach allows the fund to accommodate companies that don't fit precisely into one clear mold.
The Dutch venture capital market is quite dynamic, with an increasing number of investors, including more interest from foreign investors in Dutch start-ups. Investors are now opting for a clear profile and specialization, which wasn't as prevalent a few years ago. This created opportunities for new entrants like No Such Ventures. One of the founders, Reinder Lubbers, saw an opportunity in the market, as many VC firms seemed similar. No Such Ventures stands out with its unique approach, allowing them to pursue deals that other investors might pass up.
Reinder Lubbers, the founder, had diverse experiences in private equity, venture capital, M&A, and as part of management at a scale-up before setting up his own venture capital company in his thirties. He sees the benefits of this broad experience, as it helps him be a better investor, understanding the healthy chaos of a fast-growing company and the professionalism of private equity.
Unlike most venture capital investors, No Such Ventures intentionally avoids using a fund structure. Instead, they let their investor base decide on a deal-by-deal basis whether they want to participate. This approach strikes a balance between passive investing in a fund and being actively involved as an angel investor. Many entrepreneurs are eager to invest in start-ups and contribute to their growth without having to be involved on a daily basis.
Operating without a fund allows No Such Ventures more flexibility to pursue deals that don't fit into a fixed mandate, including different countries, sectors, phases, or deal durations. Their portfolio now includes a mix of B2B-SaaS, marketplaces, and hardware companies. This broad scope keeps their options open and leads to exciting opportunities. While most deals are still in B2B software, the plan is to build more internal specialization over time, supported by their network of investors who help with deal selection and guidance.
No Such Ventures bridges the gap between venture capital and private equity models. Unlike many venture capitalists who prioritize growth over profit, No Such Ventures focuses on both growth and profitability. They consider a variety of companies that may not fit neatly into the traditional options. For example, companies that currently generate revenue through consultancy but are transitioning to a recurring software model, or companies that are steadily growing but not yet profitable enough for private equity funds, yet have the potential for a successful exit in a few years. Such "no such" companies are intriguing to No Such Ventures, hence their name.
Part of their investment strategy is providing significant attention to each portfolio company. They opt for a small portfolio that they can actively support, rather than pursuing numerous deals just for the sake of quantity. Their deal selection process often involves external experts, usually from their investor base, in the termsheet negotiation. This approach enables them to conduct due diligence more efficiently and have substantive discussions with entrepreneurs. The approval of an expert in the network further validates a potential investment.
Source: https://www.emerce.nl/interviews/reinder-lubbers-no-such-ventures-venture-capitalindustrie-moet-zelf-blijven-innoveren