Interview Edition: Marcin Szelag

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Krakow based Marcin Szelag is a VC investor who has gained lots of experience in his field. Find out what he would bet his money on and why!

Describe yourself in 50 words or less.

My name is Marcin Szelag and I’m a partner at Innovation Nest where I invest in early stage Software-as-a-Service startups. I come from the startup world and as an investor I now help entrepreneurs build scalable tech companies.

What led you to investing in startups?

You might say that I’m an Internet geek. I discovered the web in 1996 and fell in love with it on the spot. Since then my paths always crossed tech and Internet. The last startup I worked for was acquired and I switched sides to become a VC.

What startups are you currently involved in?

Innovation Nest has invested in close to 20 companies so far. Our biggest success to date is UXPin, which recently raised a $5MM series A round. Last month I led a round in International Coupons, which operates coupon websites in 16 countries.

Describe your typical day from waking up to going to bed.

I usually wake up at 6am. Before I get to the office I hit the gym. First thing I do at the office is answering emails. After that I take meetings or calls for the better part of the day. 8-10pm is reserved for my wife and two sons. The last thing I do before I go to sleep is to catch up on reading.

Tell us about your best investment so far and why it will succeed.

Earlier I mentioned UXPin – so far this has been the fastest growing company in our portfolio. UXPin delivers a platform to designers of all shapes and sizes. UXPin is mostly used to prototype web and mobile applications/interactions. Currently serving many of the Fortune 500 companies. UXPin was one of the first companies I invested in at Innovation Nest. I found the company through an article on TechCrunch and I knew the problem they were solving as I was frequently scetching up some wireframes for new web apps. I knew the competition and I knew that UXPin has the better product. I belive that it will succeed because they are laser focused on giving designers the best possible tool to do their job.

Tell us about an investment you made which turned out to be unsuccessful.

Every VC on the market has companies in his portfolio which failed. This is the essence of investing in startups. Most of them will fail – only few will succeed. Every unseccessful investment is a learning experience.

7 years from now: how did your contribution change the startup world?

I’m based in Krakow (Poland). When I joined Innovation Nest the startup scene in the city was very small. We didn’t have meetups, there were very few startups. That was 2011. Now we have many well funded startups in town. The scene is booming and we are attracting international capital. I would like to think that some of this growth came from my contribution. Three years ago I launched Startup Stage – a monthly tech meetup. Now there are few thousand people on our mailing list. In 7 years from now, I would like to see more scalable startups from Central Eastern Europe.

What trends would you bet your money on? And how will it influence everyday life?

One trend I am betting on is software. Every industry, every business process, every life process is getting disrupted with software. The second trend I am excited about is “Internet of Everything”. I believe that with billions of sensors our lives will be deeply influenced by technology. If you add advanced robotics and automation to sensors and software I strongly believe that our everyday life will become much simpler and better.

What does it take for a startup to impress you?

Paul Graham once wrote that startups are all about growth. Over the years I’ve heard hundreds of pitches. After a while all pitches sound the same. The once that catch your attention are the once where founders talk about traction, user engagement. I get impressed by high growth numbers.

What do you offer your partners when you’re not throwing money at them?

I like to consider myself as a “value add” investor. I only invest in companies I know I can provide that additional value besides money. This value add is mostly concentrated around network and mentoring.

Describe what a business relationship with you looks like.

I always try to help people. Whatever good you do, it always comes back to you one way or the other.

What advice would you give first time entrepreneurs and young startups?

Iterate fast and focus on growth. Nothing cures all problems like exponential growth.

 

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