By Grant Shirk - December 23, 2019
Original article: https://searchbusinessanalytics.techtarget.com/feature/Differentiation-key-for-BI-startups-when-attracting-investors
Vanessa Larco is a partner at New Enterprise Associates, a venture capital firm with over $20 billion assets under management. NEA was an early investor in companies such as Tableau and Salesforce when they were tech startups, and, among many other types of companies, continues to invest in BI startups. Recently, NEA was part of an investment round in Sisu, a startup BI vendor founded in 2018 and based in San Francisco.
When you’re considering investing in BI startups, what are some of the characteristics you want to see in a vendor that tell you it might make a good investment?
Vanessa Larco: I think every partner has their own journey when trying to figure out where to invest. For me, I draw a lot on my experience having been a product manager. When I think about what the challenges were that I had or that my team had in building, launching, supporting, maintaining products and then when you see a solution — whether it’s in data or any other vertical — that makes sense and you can say, ‘Wow, if this had existed when I was doing things it would have made my life easier, my team’s life easier,’ it’s something that resonates right off the bat.
I think every partner has their own journey when trying to figure out where to invest. For me, I draw a lot on my experience having been a product manager. You then validate it against actual teams that are still building things and ask them if this would be helpful, and that validates the real need for it.
In the case of Sisu, what stood out about them and led NEA to decide it was a company worth betting on?
Larco: Every process, as much as we like it to be standardized, turns out to be its own unique snowflake, and in the case of Sisu, Pete Sonsini led the deal team and I joined the deal team, meaning I helped him evaluate the opportunity and spent time with the team. I am super excited about Sisu. I ran it by some of my portfolio companies, particularly the ones who [complain that] board meetings take forever because they show a bunch of data and people ask, ‘Well why did this happen, why did that happen?’ And to get those answers it takes at least week. So when I saw the Sisu value proposition I wondered if this will solve that problem.
Even back when I led a product team in the past and we would present to CEOs, we’d show numbers going up and down and they’d ask, ‘Well, why did that happen?’ We’d have to get back to them. It’s just super painful when you know they’re going to ask you why, and that is what takes forever. Sometimes you spend all that time trying to figure out why, and then nothing comes of it, so when I saw the Sisu value proposition I thought that if this actually works it could be game changing.