20 VC 017: Nektarios Liolios of Startupbootcamp on Fintech, Pitching and London's Tech Scene

Nektarios Liolios is Co-Founder and Managing Director of Startupbootcamp Fintech, the leading innovation program in the financial industry providing access to a global network of investors and VCs for up to 10 lucky startups selected. Nektarios himself has more than 15 years in business, having spent the last three with InnoTribe, running the Innotribe Startup Challenge. Items mentioned in today's show: 500 Startups: How to Pitch investUP: The Crowdfunding Supermarket What you will learn in today's episode: How Nektarios got into the world of tech accelerators? How Startupbootcamp Fintech varies from the traditional VC model? What makes the best pitches at Demo Days? What is the selection process to get accepted at Startupbootcamp? What can startups prepare to do before pitching to Startupbootcamp? What is the most common reason Nektarios says no to startups? What would Nektarios advise someone who is looking to find a co-founder? What sector is Nektarios most excited about for the future? What Nektarios thinks about the future of bitcoin? We then complete todays interview by having a quicker round where we hear Nektarios' thoughts on his favourite entrepreneur? The happiest moment Nektarios has enjoyed in his career? A day in the life of a Managing Director of a Startupbootcamp? What was Nektarios' most recent investment and why he said yes? For all the resources mentioned in today's show, head on over to www.thetwentyminutevc.com For any suggestions about future guests or questions you would like to hear, we would love to hear from you. If so email [email protected]

Speaker names marked ? are inferred from speaking time and the show’s known hosts — they are not voice-verified.

• 0:00Harry Stebbings?

  Hello and welcome to the second instalment of Accelerator Week here at the 20 Minute VC with Harry Stebbings. On today's show, I'm so excited to welcome Nektarios Liolios. He is co-founder and managing director of Startup Bootcamp Fintech, the leading innovation programme in the financial industry in the heart of London, providing access to a global network of investors and VCs for up to 10 lucky startups in the fintech space. Nektarios himself has spent more than 15 years in the business, the last three being with IntriB, Swift's initiative to enable collaborative innovation and running the IntriB Startup Challenge Day. But before we jump into the interview,

• 0:39Harry Stebbings?

  would you like the chance to pitch your business to one of our VCs? If so, all you have to do is head on over to iTunes, leave a review, then simply email [email protected] with the name that you left a review under on iTunes and you'll be submitted into the competition. But without further ado, it's time to jump into the interview.

• 1:05Speaker 01

  You have now arrived at your destination.

• 1:08Harry Stebbings?

  First, I'm really interested to find out about how you got into the technology industry and then later made your transition into the accelerator world of Startup Bootcamp. Can you tell us a little about that?

• 1:20Speaker 01

  I can. It's a funny one because for somebody who runs a fintech accelerator, I have no background in financial services, technology or entrepreneurship. That is always one of those kind of anecdote moments. No, I started off, I studied at university something completely different, political science, media sociology, French. And just through a zigzag of possibilities and a few coincidental moments, I ended up working for a central securities depository here in London in the late 90s. That was my first kind of toe in the water with the

• 2:02Speaker 01

  financial industry. Then I worked with Swift for a few years, Swift being the network that the banks use for transactions of all kinds. And Swift is a cooperative and within Swift in... Uh after the crisis in two thousand and eight, um some of my colleagues there founded something called InnoTribe, which was an initiative to bring innovation into the financial industry and explain to the members of SWIFT, to the banks and the other financial institutions, what they need to be aware of and what they should be doing. And this is how I got my first taste of um entrepreneurs and startups in the financial industry space.

• 2:40Harry Stebbings?

  And that was two thousand and nine?

• 2:42Speaker 01

  It started, well, I joined in the end of two thousand and ten.

• 2:45Harry Stebbings?

  Okay.

• 2:45Speaker 01

  Um and my um my role within InnoTribe evolved into managing something called the InnoTribe Startup Challenge. So I was running a competition, a global competition, um that was looking to bridge between the bankers on the one side and the interesting fintech startups on the other side. And this is how I got into into the technology space within the banking world. And at the end of twenty thirteen, I decided to switch sides and actually get a lot more hands on involved with startups by looking at the same environment, but from a startup uh support perspective. And this is where Startup Bootcamp Fintech comes in.

• 3:24Harry Stebbings?

  Now, for those of our listeners who aren't aware of the premise of Startup Bootcamp, could you explain a little about what Startup Bootcamp does and how you're different from a traditional VC model?

• 3:36Speaker 01

  Startup Bootcamp Fintech specifically, and this is, this is something that we might need to to kind of point out in our conversation here.

• 3:43Harry Stebbings?

  Sure.

• 3:43Speaker 01

  Is is um is an accelerator at the core of something bigger, which is ultimately ultimately an innovation program uh for for large corporates, for the banks. Um so we see ourselves as a tool that allows on the one side, um banks and other and other players in that space to access innovation, to look at trends, to see what's coming through and and uh work with the startups. Um and on the other side, it's an opportunity for startups to find customers really quickly uh and be able to run experiments and proofs of concept and pilots with um organizations that usually would have a problem connecting with because

• 4:27Speaker 01

  they are too early stage or they're not mature enough or they don't have any traction. Uh so it it has both angles. Ultimately, the investor side, um the investment side or you draw the comparison with with the VCs, um is.

• 4:41Speaker 01

  Another angle to what we do. So we don't fund startups ourselves. We don't have a fund behind. We don't put any money into the startups. Uh but when they are selected into the program, we help them through our network of angel investors and VCs to get funded. Um. So it's a slightly different model than some of the other accelerator programs are running.

• 5:00Harry Stebbings?

  And then do you have a demo day at the end where they show off their products to the angels?

• 5:05Speaker 01

  Yes, we do. Um. We had our first uh demo day for the fintech program in London last year in November. Um. We experimented a little bit with the model. Um. So usually demo days, um. I think there's a template format for that, which is you have um the teams, they've got five, six, seven minutes ha- half along for their killer pitch and and on stage. Uh. A lot of pressure, they have to deliver, and then hopefully they will get some conversations afterwards. Um. So we we changed it a little bit. So we we actually didn't have the startup's pitch on stage. We had for each startup a mini stage where they had to pitch five times consecutively. And investors in the room had to pick five out of the ten startups that they really wanted to talk to.

• 5:47Speaker 01

  Um. But they had a much more intimate environment because each startup at every time, every rotation, only an audience from twenty to thirty people.

• 5:56Harry Stebbings?

  And what do you think made the best pitches? Was there a common theme? Was it a confidence within the founder? Was it a particular design product?

• 6:06Speaker 01

  Um. For a good pitch, he, I mean, so some people are natural presenters. Uh. But it doesn't necessarily translate into a good pitch. You need to have a solid product. You need to have a a reason why you're doing this. Uh. And you need to be convincing. You need to be able also to show during the pitch that uh you know your metrics, you know where you're heading with this. Um. You're not trying to boil the ocean, but you're very specifically focused on the next stage of your journey and you're trying to get investors to get excited by by you, by your team, which is also important. And and by the vision that you have, but also being realistic about what you can achieve and what timeframe.

• 6:49Harry Stebbings?

  Now, London's a complete, a very competitive tech landscape nowadays. And it's getting harder and harder, I'm sure, to be accepted into accelerators for startups. Leading me to ask, what's the selection process like at startup bootcamp fintech? Um, for choosing which startups to accept and which not to?

• 7:10Speaker 01

  We, we do this in, in different ways. And it's interesting what you're saying about a competitive environment for startups to get accepted in accelerators. But at the same time, there is a proliferation of accelerators. So we also need to be quite clear about the value that we articulate towards the startups. Um, there's, uh, we, we operate in multiple ways. So we run pitch days in all locations where we know that there's fintech activity. Um, so we do this all the way from the US through multiple locations in Europe and Asia. So this year for, for twenty fifteen, we're also going into the Middle East and we're going to Africa. Uh, because we think that startups have to come to know us. Um, and we want the opportunity to get engaged with them quite early on face to face.

• 7:53Speaker 01

  Rather than rely purely on, on an online application. Um, another thing we do is we actually hunt startups. So we don't rely only on the teams that consider coming to us and they apply online. But if we see a good team, we also need to sometimes talk to them and float the idea with them. They could be, um, getting some value out of an accelerator. Um, but, um, we, we need certain things. We need, we need a decent, um, team. We need, um, an idea that has legs. Um, so which means we also need to understand, uh, the sector that they operate in. Uh, and we need to have some code. So that's a minimum requirement for us. So we don't go just by PowerPoints and, and Excel spreadsheets. We need to have a prototype or an MVP of sorts.

• 8:38Harry Stebbings?

  And do you prefer founders or a single founder?

• 8:42Speaker 01

  We don't take single founders.

• 8:43Harry Stebbings?

  Don't take a single?

• 8:44Speaker 01

  Uh, we don't, uh, that's, we need a team. Uh, and a team ideally should have at least three different profiles. Um, we, we have taken teams in that were two founders who put something together. But very quickly you realize that the team needs to grow and it needs to have somebody who understands the product. Somebody who can sell and somebody who is in charge of the technology.

• 9:06Harry Stebbings?

  And what would you say is the most common reason you say no to startups then?

• 9:11Speaker 01

  Um, it's the most common. I'll I'll give you a few. One of them is that the team is not complete or not existent. We get quite a few single founders uh who apply. Um, we also need to have an element of humility. Um, so people who are actually coachable on and are interested in in listening to the feedback and the and the advice that we can get bring in. Um, uh, and it's a thin line between the confidence that you you need to bring in as a founder, somebody who actually decides to maybe give up your day job and and do something on a shoestring.

• 9:46Harry Stebbings?

  Sure.

• 9:47Speaker 01

  Um, but at the same time, also being open to to the feedback from the mentors, from us as an accelerator, but uh also from other advisors and investors. Um, so those are probably the main reasons. Maybe a third one would be that very often what we see is a product that it's already been built somewhere else. So people don't do the research, think they've come up with something unique and in the end it's it's not that unique. Um, a good team can turn this around. Uh, but if the team's weak, then then we we have to say no.

• 10:17Harry Stebbings?

  And you said about teams being incomplete potentially. What would you advise someone looking to find that missing key to their team? Uh, do you would you recommend that they network in particular places or go online to particular sites? How would you recommend completing your team?

• 10:35Speaker 01

  Um, do everything and anything. Uh, go out, go to meetups, go to conferences that are relevant for the industry you operate in. Um, also just expose yourself to the possibility of of, uh, I don't know. Serendipitous moments are important. So sometimes it is, it is luck, it is coincidence. But if you don't put yourself out there, if you don't go to um any type of events and use as much networking opportunities as possible, you will never find these people. Um, so yeah, put yourself out there. They're not going to come to you.

• 11:10Harry Stebbings?

  And and what can startups do to prepare themselves for pitch day at Startup Bootcamp?

• 11:15Speaker 01

  Um.

• 11:17Speaker 01

  First of all, there's a lot of research on what constitutes a good pitch. And people don't do that. People don't, there's YouTube clips, there's advisors, blog posts. A pitch needs to have some key elements that everybody wants to hear. One of the things we see is that people don't do that. They don't really rehearse their pitches. The other thing that is interesting is that startups often, or just generally, people don't prepare for the audience that they have in front of them. One of the pieces of advice I give to anybody is, before you go and present to an audience, think about who they are. And every pitch has to be different. Is it a competition? Slightly different slant. Is it an investor presentation?

• 12:01Speaker 01

  Again, a very different focus. If it's about being accepted in an accelerator, again, think about what are the messages you need to convey and also finish on an ask. Tell people why you think you should be selected or why people should invest in you. People very often don't do that.

• 12:18Harry Stebbings?

  You mentioned resources instructing you on how to construct a perfect pitch. Do you have any in mind that stand out?

• 12:27Speaker 01

  Well, 500 startups have got a very good write-up that's probably about three or four years ago. But seriously, it's as simple as Googling "perfect pitch", and the amount of videos and blog posts you have on this is just ridiculous. So it's even more surprising why people actually are not using them.

• 12:47Harry Stebbings?

  Absolutely. Now, focusing on the technology market as a whole now.

• 12:54Harry Stebbings?

  Fintech is obviously the sector you're working in most closely. But is there one other sector that you're most excited about?

• 13:03Speaker 01

  There's a few. People, I mean, internet things, IoT in any kind of guise is interesting.

• 13:14Speaker 01

  People use terminologies like smarter cities, smarter living. I think anything that will go into the level of Small data, not just big data, devices talking to each other. Um, a lot of things that will will automate, um, various aspects of our lives are very exciting. Um, I think what excites me more is to see how now we already see a little bit of a cross industry. Um, tendencies, so people taking technology out of one world, like the fintech world. Um, and looking to use it in other areas. So governments looking at blockchain technology. Um, insurance companies are looking at, um, devices and all these things. This is where where I get excited.

• 13:57Harry Stebbings?

  Um, just out of interest, what are your thoughts on the future of Bitcoin?

• 14:01Speaker 01

  Um, my thoughts are that we should separate the discussion to some extent between the currencies and the underlying technology. Um, so between the coins of this world and the blockchain technology that these coins are built on. Um, you cannot take them completely apart, but I think that, uh, the key technological advancement here is is the blockchain and everything that is going to be built on it. Rather than the very populist, um, headline generating Bitcoin and currency related, um, uh, things we've seen in the past.

• 14:41Harry Stebbings?

  Now, if it's okay with you, we're going to move into a quickfire round where I say a word or a short statement and you provide your immediate thoughts.

• 14:49Speaker 01

  Sure.

• 14:50Harry Stebbings?

  So your favorite entrepreneur and why?

• 14:53Speaker 01

  My favorite entrepreneur is not a specific person, but somebody with a vision. Uh, somebody who listens, somebody who has the drive to give up some of the comforts of his life just because, or her life. Just because they want to do something great and is not deterred by the naysayers and the people who think he will not succeed. So it would be easy to say, I don't know, Richard Benz and all the names, but in the end there's so many people who do exciting things, uh, that don't get the same level of praise. Um, but I have a lot of respect for people who give up stuff just because they want to follow their dream.

• 15:27Harry Stebbings?

  Absolutely. And. What's the happiest moment you've had in your professional career?

• 15:33Speaker 01

  That's since I've joined Startup Bootcamp and it sounds a bit corny, but it's actually true because I've spent nearly eighteen years of my life in the corporate world, um, in various guises. And the, the excitement and the inspiration and the immediate satisfaction I get out of working with entrepreneurs. But also working in a startup myself, so ultimately Startup Bootcamp operates very leanly. It, it runs like a startup, um, so it's been, it's been a tremendous ride over the last fourteen months and I wouldn't change a thing.

• 16:04Harry Stebbings?

  And, and what's the day in the life of, of you, an M D at Startup Bootcamp? Can you provide a little insight into that?

• 16:13Speaker 01

  The great thing about this job is that there, there is no such thing. Um, there, there is no template. Um, I can give you some snippets, okay, so sort of insights. One of the great things is that when I come into the work and into the office in the, in the morning, I, I don't really know how many decisions I will have taken by the end of the day. Uh, but when I finish, I usually have done something that has made an impact, smaller impact, bigger impact, but some decision that actually has changed something. And, and when you work in the corporate world, even the smallest decision sometimes takes weeks and this is really frustrating. Um, the other thing that's exciting is that running a program like ours runs on multiple layers. So we need to manage our corporate, our industry partners.

• 16:57Speaker 01

  Uh, we need to manage our investors, the mentor community, but also then work with the startups hands on. And, and all these things have very different requirements. So it's a very varied, um, kind of day because it touches upon the different constituents pretty much every day. And on top of that, we've got different phases. So at the moment, the program in London is quiet, but we're in recruiting mode for our program in Singapore. Um, once we've closed the applications, it's all about selecting. Once we've closed the selection process, it's all about actually working with the startups. So every, every kind of month or every quarter has a very different focus area and that makes it for a very exciting, a very varied kind of day.

• 17:37Harry Stebbings?

  Is working with the startups your favorite quarter?

• 17:41Speaker 01

  Working with the startups is varied full on. Uh, so it has its highs and it has its lows. Sometimes you have to be very paternal, to put it very carefully, and very directive. Um, and firm, and sometimes you just get inspired by the spirit and the flexibility and the creativity and the ingenuity of the people you work with. So definitely, but also I have to say, one of the things, and it was funny because after reviewing last year's program with my team, we sat down and everybody in the team agreed that one of the highlights was actually the selection weekend. Where we have the twenty teams that made it to the end in London for three days, and out of the twenty, with the help of our partners and the mentors, we picked the ten that actually make it into the program.

• 18:22Speaker 01

  It's such an intense, uh, three days, but the, the, the, that experience was, was quite magical. So, um, the selection process is also very exciting.

• 18:34Harry Stebbings?

  And then finally, the most recent investment and why, well, not investment, but company that you've partaken in and, and why you enjoyed it so much.

• 18:44Speaker 01

  Um, personally, actually, I haven't invested in a company since I burnt my fingers in the dot com uh, uh, area, uh, so era in, in, in, uh, two thousand. So I will be disappointed in that. Um, looking at the teams that we had in the program, there's been a few teams that I would actually consider putting my own money in. Um, that's because I think there's a lot of potential. One of them is InvestUp, a crowdfunding aggregator. Um, they've just launched, they're a great bunch of guys. Um, they are going to go very far.

• 19:18Harry Stebbings?

  Fantastic, and all the links can be found in today's show notes.

• 19:22Speaker 01

  Of course, and of course, it's like parents, you shouldn't pick between your children. All our ten teams were fantastic.

• 19:27Harry Stebbings?

  Of course they were, of course they were. Well, Nate Iris, thank you so much for coming on the show. It's been such an honor to have you and I hope to have you on again soon. For all the resources mentioned in today's show, do head on over to www dot the twenty minute V C dot com. And if you have any suggestions for future questions or guests that you'd like to have on in the future, please do let me know. Email harry at the twenty minute V C dot com and we'll do everything we can to make it happen. Thank you so much and we can't wait to see what you think of the next episode.