EUVC VC | E491 | Patric Hellermann & Andreas on the famed “VC edge” aka differentiation
Jun 12, 2025
Patric Hellermann, an early-stage VC and the founder of Foundamental, shares his expertise in how to create a distinctive edge in venture capital. He breaks down the four critical steps for value creation and discusses why liquidity should take precedence over hype. Patric emphasizes the importance of empathy and unique experiences in appealing to founders, as well as the role of discipline in investment strategies. He also delves into the dynamics of European funds, highlighting the pitfalls of routine investing and the need for specialization.
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VC Value Creation Steps
- The VC business consists of four value-creation steps: sourcing, picking, winning, and managing.
- Differentiation lies in excelling across these steps to build a scalable edge as a VC firm.
The Buddy Test for Edge
- Ask yourself why your network buddies call you first for deals instead of others.
- Being just on good terms with them isn't enough to secure better deal flow or win.
Context Specific VC Differentiation
- Being the first call in venture investing is context-specific by vertical or geography.
- Founders pick VCs based on who has routine and repetition in their niche or region.