EUVC | E390 | Cherry Ventures’ Christian Meermann on culture of excellence & underwriting the next generation of emerging managers
Dec 19, 2024
auto_awesome
Christian Meermann, Founding Partner at Cherry Ventures and a Forbes Midas Lister, shares insights from his impressive journey as CMO of Zalando to venture capital success. He discusses building a culture of excellence at Cherry, strategies for underwriting emerging managers, and decision-making for follow-on investments. Reflecting on the evolution of SaaS valuations, he emphasizes the balance between profit and growth. Christian also highlights the importance of personal connections in the venture landscape and shares valuable lessons from his experiences.
Christian Meermann discusses the importance of bridging entrepreneurial experience with investment strategies to foster successful early-stage investments.
Cherry Ventures emphasizes a culture of excellence through collaborative decision-making and diverse perspectives to reduce groupthink during investment assessments.
Deep dives
Founding Journey of Cherry Ventures
Christian Meerman and his co-founder, both previously entrepreneurs at Zalando, turned their passion for investing into the founding of Cherry Ventures. Initially, they started angel investing with personal funds as their hobby before transitioning into full-time venture capital after Zalando's IPO. They focused on early-stage investments across Europe, particularly in sectors like SaaS, responding to a market that was less developed at the time. Their journey highlights the importance of bridging entrepreneurial experience with investment strategies, leading to successful early investments in companies such as Flixbus and AutoOne.
The Shift in Investment Dynamics
The podcast discusses the transition from high valuations in startups to a more cautious investment atmosphere characterized by clear product-market fit. In the past, venture capital firms invested heavily in rapidly growing markets without the necessary financial discipline, resulting in inflated valuations and unsustainable business models. The current climate requires more rigorous assessment of investments, prioritizing strategic partnerships and re-evaluating follow-on funding based on a startup's performance. This approach emphasizes the necessity of understanding the business dynamics rather than just focusing on growth for growth's sake.
The Value of Operational Experience in Venture Capital
Meerman emphasizes the significance of having partners within Cherry Ventures who possess operational experience from previous entrepreneurial roles. This background allows investors to provide substantial strategic insight to founders, assisting in decision-making and navigating challenges. However, it also poses the challenge of stepping back from a hands-on approach, letting founders lead while staying supportive. Differentiating between contributing valuable guidance and not overwhelming founders with advice is key to maintaining a strong partnership.
Cultural Insights and the Importance of Diversity
The podcast reveals how Cherry Ventures fosters a high-performance culture through a focus on collaborative decision-making and diversity. They utilize a unique voting process during investment committee meetings to ensure independent opinions are expressed before discussions commence, thereby reducing groupthink. This approach reflects a commitment to integrating varied perspectives; having different backgrounds helps uncover opportunities beyond traditional patterns of success. Moreover, a strong emphasis is placed on cultural fit during the hiring process, contributing to a cohesive team that aligns with the firm's values.
In today’s episode, Andreas talks with Christian Meermann, Founding Partner at Cherry Ventures and a Forbes Midas Lister. ith a €320M fund size and €1B in AUM, Cherry Ventures has made its mark across Europe by backing companies like Flixbus, Auto1, Flaschenpost, Finimize, and Ninetailed. Headquartered in Germany, the fund focuses on early-stage investments (Pre/Seed/Seed+) across both B2B software and consumer verticals.
Christian shares the secrets behind Cherry’s culture of excellence, navigating competition in venture capital, and how to underwrite new managers in today’s market. He also dives into the art of decision-making for follow-on rounds, discussing what to look for and how to support portfolio companies effectively.
With deep entrepreneurial roots, including his role as CMO of Zalando—scaling it from small revenues to over €2 billion at IPO—Christian brings a wealth of operational experience, strategic insight, and passion for founders with global ambitions.
Together, we explore:
Cherry's founding journey and Christian’s entrepreneurial background.
Building a culture of excellence while competing in a dynamic venture market.
Underwriting new managers: What investors should look for in emerging talent.
The decision-making process for follow-on investments and how Cherry approaches it.
Lessons from Christian’s career and success stories, including one of Germany’s largest exits with Flaschenpost.
Get the Snipd podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share & Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode