Introduction
Filip Dames - Founding Partner at Cherry Ventures.
Cherry Ventures is an early-stage venture capital firm led by a team of entrepreneurs with experience in building fast-scaling companies such as Zalando and Spotify. The firm backs Europe's boldest founders, usually as their first institutional investor.
They have a great track record having previously invested in the seed stage of over 90 companies across Europe, including FlixBus, Auto1 Group, Infarm, Forto, SellerX, Juni, and Flink just to name a few. They are based in Berlin with offies in Stockholm and London.
Before Cherry, Filip started his first startup company in 2008, a digital marketplace for art and collectibles (long before there were NFTs). He then joined Zalando (ZAL:GR) as member of the founding team and grew the business up to IPO.
During this episode we discuss about his journey with Zalando, the founding story of Cherry Ventures and why making the first million is the hardest.
Please enjoy this excellent conversation with Filip Dames, Founding Partner at Cherry Ventures.
Conversation
Venture Europe Podcast with Philip Dames: A Deep Dive into Entrepreneurship and Venture Capital
I. Introduction (0:00 - 5:00)
- Introduction of guest Philip Dames, Founding Partner at Cherry Ventures, an early-stage VC firm supporting Europe's boldest founders.
- Brief overview of Dames' background, including his startup experience and his time at Zalando.
- Sophia Benz, from Cherry Ventures, shares a personal anecdote about Dames, highlighting his positive personality and dedication to his work.
II. Work-Life Balance and The Future of Work (5:00 - 10:00)
- Discussion on work-from-home versus office work, with Dames emphasizing his preference for in-person collaboration.
- Analysis of hybrid work models and their effectiveness in different company cultures.
- Dames highlights the potential downsides of remote work, including reduced efficiency and motivation.
III. Searching for the Right Idea and Achieving Product-Market Fit (10:00 - 20:00)
- Dames recounts his early entrepreneurial experience with an art and collectibles marketplace, drawing lessons from its lack of product-market fit.
- Comparison with Zalando's rapid success and the importance of a unique value proposition.
- Discussion on the importance of data-driven decision-making and continuous feedback loops.
- Emphasis on the value of early customer testing and the courage to pivot when necessary.
- Importance of balancing data-driven iteration with bold hypotheses and intuition.
IV. The Zalando Journey: From Early Challenges to Breakthrough Moments (20:00 - 30:00)
- Dames shares anecdotes about the challenges faced during Zalando's early growth, including lawsuits and operational complexities.
- Discussion on the importance of hiring talented individuals who can elevate the company.
- Recounting the pivotal moment when Zalando’s TV advertising campaign significantly boosted user acquisition.
- Emphasizing the need for entrepreneurs to constantly push boundaries and deliver on their promises.
V. Cherry Ventures: Investment Strategy and Building a Culture of Excellence (30:00 - 45:00)
- Explanation of Cherry Ventures' origin story, starting as angel investments by Dames and Christian Meermann, and evolving into a seed-stage VC firm.
- Detailing Cherry Ventures' focus on seed to Series A investments and acting as a catalyst for founders to achieve product-market fit.
- Discussion on building a strong company culture at Cherry Ventures, emphasizing the value of hiring individuals with entrepreneurial experience.
- Insight into the firm’s thorough hiring process, including quantitative assessments and multi-stage interviews.
VI. Investment Focus and Trends (45:00 - 55:00)
- Breakdown of Cherry Ventures' investment areas, including fintech, AI, climate tech, and B2B software.
- Dames' deep dive into B2B payments and the evolving complexities of payment orchestration.
- Brief discussion on the AI hype cycle and the importance of defensibility in AI-driven products.
- Highlighting the increasing talent pool in the climate and impact space.
- Overview of Cherry Ventures' internal knowledge-sharing format and its role in identifying new investment opportunities.
VII. Reflections on Success and The First Million (55:00 - 1:00:00)
- Dames' perspective on the challenges and rewards of earning the first million.
- Emphasis on intrinsic motivation and the importance of pursuing passion projects.
- Affirming that the drive to build and support innovative companies is a primary motivator for Cherry Ventures.
VIII. Personal Growth and Advice for Aspiring Entrepreneurs (1:00:00 - 1:05:00)
- Dames shares an exercise for identifying activities that bring joy and those that drain energy, advocating for prioritizing fulfilling work.
- Discussing the benefits of coaching, both individually and for teams, to foster personal and professional growth.
- Advice to his younger self: trust intuition, follow passion, and don't overthink.