
E324 | EUVC Awards | Sarah Drinkwater, solo GP at Common Magic on community as investment focus
EUVC
Building Strong Communities for Startup Success and Investment Strategy
Startups often build their first community with friends who have experienced the same problem. Success is driven by structuring and scaling communities effectively to create a competitive advantage. The belief that the next wave of great companies will be community-powered drives investment strategies. Operational expertise is crucial for small funds to succeed. Setting clear metrics, hiring dedicated leads, and long-term community structuring are key factors in community-building success. The fund focuses on Western Europe and the US but remains opportunistic. Investment preferences span various sectors but avoid high consumer or ultra-deep tech. Investments primarily target early-stage startups with no leading and no board seats, focusing on following and understanding their place on the cap table.