CIBC Innovation Banking Podcast

Originally released on June 2 2021, this episode of The CIBC Innovation Banking Podcast is part of our ongoing celebration of meaningful dialogues with our listeners. As we highlight some of our standout episodes featuring trailblazers and icons in the Innovation Economy, we recognize the enduring relevance and value of the insights shared. Join us as we revisit these dynamic discussions and showcase the innovation that continues to define and drive our industry.  

Bob Nye is a General Partner at JMI Equity. He joined JMI in 2005 and is based in Baltimore, Maryland. Nye’s primary areas of investment focus are internet and enterprise software companies, and he specializes in helping growth companies build value. Nye has helped many companies overcome their hurdles and grow into unicorns with a valuation over $1 billion. In this episode, we look at the unique challenges in scaling and funding Canadian start-ups.

Investment strategies have evolved over three decades

In the early days, you were investing in an idea. The entrepreneur would typically have experience within that industry, understand the pain points of that business, and what the customers would need. This is what investing looked like 30 years ago, but if we fast forward to today, businesses need to be much bigger if they’re looking for a sizeable investment. On average, when JMI Equity invests in a company, they have $35 million in revenue, revenue growth of 35% year over year, along with an established product market fit. Because companies have established product market fit, there is primarily “execution risk” which is very different from early stage ventures when investors are taking on all the risk.  

How do you get from $1M to $50M in revenue? 

The traits, skills and characteristics of an entrepreneur that make them successful early on are often the polar opposite of what will make them successful as their company evolves, says Nye. The key to scale is to have incredible customer centricity, and maniacally focus on your customer experience. The second factor is to ensure that you have great functional leaders. A great entrepreneur knows exactly when it’s time to step aside and let somebody else manage the day-to-day so that they can focus on the company's larger vision and strategy. 

CIBC Innovation Banking is a trusted financial partner to entrepreneurs and investors. Get in touch with our team at cibc.com/innovationbanking.

This episode of The CIBC Innovation Banking Podcast was produced by Quill.

Originally released on October 19th 2022, this episode of The CIBC Innovation Banking Podcast is part of our renewed focus on highlighting exceptional conversations within the American Innovation Economy. Join us as we revisit these insightful discussions and shine a light on the ongoing innovation that shapes our industry.

In this episode, Michael Hainsworth sits down with Tom Dretler, the co-founder and CEO of Shorelight. Founded nearly a decade ago, the company matches international students with universities in the United States, and helps them succeed socially and academically. During the episode, Tom shares how he had to go back to school—metaphorically speaking—when the pandemic collapsed demand for international education opportunities in 2020. He also explains why the economic downturn that followed  has led Shorelight to revisit the way it plans on funding its future. 

Tie profitability to your mission

When Tom and the team were first conceptualizing the idea for Shorelight, they knew they wanted their goal to ultimately be helping students successfully graduate and begin their careers. As a result, when they began designing their business model, they decided to walk their talk by tying their profitability directly to student outcomes. That way, they were constantly measuring themselves as a business driven equally by mission and profit.

What you do is important, but who you do it with is more important

Understanding the value of building the right company culture is crucial for any business leader. Tom mentioned that while he was a student at Harvard Business School, the Dean of the school took the time to have a coffee with him and he told him something he’ll never forget: what you do is important, but who you do it with is more important. With a 91% Glassdoor rating, it’s clear that Shorelight lives by this maxim on a daily basis.

CIBC Innovation Banking is a trusted financial partner to entrepreneurs and investors. Get in touch with our team at cibc.com/innovationbanking.

Originally released on November 2nd 2022, this episode of The CIBC Innovation Banking Podcast is part of our ongoing celebration of meaningful dialogues with our listeners. As we highlight some of our standout episodes featuring trailblazers and icons in the Innovation Economy, we recognize the enduring relevance and value of the insights shared. Join us as we revisit these dynamic discussions and showcase the innovation that continues to define and drive our industry.

The pandemic’s impact on startups, growth-stage companies and late-stage organizations continues, and geopolitical issues have also had a dramatic impact on the private equity markets. No one knows this better than Ran Ding. Ran co-leads B2B growth equity investments at Norwest, where he focuses on partnering with founder managed or capital efficient businesses looking to scale from double digit revenues to triple digit revenues. Norwest is a multi-stage investment firm that has delivered top quartile returns over the past 60 years, and seen its fair share of economic cycles. Ran cut his teeth more than a decade ago during the last financial crisis, and shares his perspective on the similarities he sees today.

COVID-19’s impact continues

As a result of the worldwide societal changes brought about by the pandemic, the timeline to build a relationship has accelerated as companies become more comfortable meeting over video conferencing platforms. While this has led to a more fluid exchange, it's also led to an increased focus on finding mission-driven career paths for employees, with the pandemic creating more remote work opportunities than before. 

Play the offensive 

With a long history under its belt, Norwest has seen plenty of ups and downs in the market along the way. During times of turmoil, Ran says their team has found it’s best to remain in constant communication with clients to help them stay prepared. And in some cases, there’s also the opportunity to selectively play offense in a very disciplined way to keep an edge against the competition.

Build a foundation of trust

When it comes to scaling a company and encouraging leaders to delegate responsibility, Ran believes that first and foremost, it comes down to building a strong foundation of trust. At Norwest, the team spends a lot of time building relationships with people before they even make an investment—in some cases for many years—to ensure they understand each other culturally, interpersonally, and are aligned in terms of their operating philosophy.

CIBC Innovation Banking is a trusted financial partner to entrepreneurs and investors. Get in touch with our team at cibc.com/innovationbanking.

Originally released on November 24th 2021, this episode of The CIBC Innovation Banking Podcast is part of our renewed focus on highlighting exceptional conversations within the American Innovation Economy. Join us as we revisit these insightful discussions and shine a light on the ongoing innovation that shapes our industry. 

Financial planning startup Vena Solutions has raised more than $400 million to fuel its growth. When you've got that kind of walking around money, you need to have a plan to turn that capital into new customers, enhanced products, and recurring revenue. In this episode,  we hear from Vena Solutions’ Chief Operating Officer, Tina Goulbourne, on the key priorities required for startup success. Tina has held key roles during her career at companies like Xerox, Hewlett-Packard, and Apple, and she leans on those experiences to help guide her in her current role at Vena Solutions. During our discussion, Tina shares the story of how she ended up in her current role at Vena Solutions as well as some of the key lessons she’s learned about the startup mentality over the course of her career.

Turn towards, instead of away

Although Tina was happy in her previous role at Apple, she was intrigued by the opportunity to join Vena Solutions for a variety of reasons. First, she knew the company’s CEO and entire leadership team would be excellent to work with given their humble, grounded, yet committed approach. In addition, Tina was interested in the opportunity to learn more about the product and build something new from scratch. Ultimately, these positive qualities stood out to her and she allowed them to serve as the guiding force in her next career move. 

Take notes from Apple

During her time as Apple’s Sales Planning and Operations Leader, Tina learned a few tricks of the startup trade. First, she learned the importance of prioritizing data when making decisions and measuring success. She was also influenced by the company’s focus on transformational improvement rather than incremental improvement—that is, rather than making small tweaks to the existing approach, there should always be a willingness to go back to the drawing board if something isn’t working. Finally, Tina learned the value of placing a strong emphasis on improving the customer experience, every step of the way.

Focus on sustainable growth

Tina noted that at the beginning of the startup journey, the focus is primarily on getting as much business in the door as possible. However, once companies enter the scale-up phase, they need to be strategic about finding ways to grow sustainably. At Vena Solutions, part of the company’s approach is to determine the biggest growth accelerators and inhibitors so they can zero in on strategies for expansion while removing potential barriers to success.

CIBC Innovation Banking is a trusted financial partner to entrepreneurs and investors. Get in touch with our team at cibc.com/innovationbanking.

This episode of The CIBC Innovation Banking Podcast was produced by Quill.

Originally released on October 27th 2021, this episode of The CIBC Innovation Banking Podcast is part of our ongoing celebration of meaningful dialogues with our listeners. As we highlight some of our standout episodes featuring trailblazers and icons in the Innovation Economy, we recognize the enduring relevance and value of the insights shared. Join us as we revisit these dynamic discussions and showcase the innovation that continues to define and drive our industry.

Kelly Schmitt successfully guided the CSR platform for charitable donation management, Benevity, throughout her tenure as Chief Financial Officer, and later President. Today, the Canadian company is a billion-dollar organization with more than 650 employees, two million users, and $7 billion in processed donations to 300,000 global charities, and Kelly has transitioned to the role of CEO. In this episode, Kelly shares her story of assuming the coveted C Suite at Benevity, how she overcame self-doubt, and the true meaning of a growth mindset in business.

People and culture trump all

Kelly shared that while working as Benevity’s CFO and President, the company’s founder approached her about taking over the position of CEO. Initially, she balked at the suggestion, assuming that the role of CEO should be reserved for the best salesperson, thought leader or visionary in the room. However, she quickly realized that being a great CEO goes beyond a solid resumé — it’s about aligning well with the company’s people and culture, and embodying the organization’s overall values.

Embrace change

To Kelly, a growth mindset means embracing the idea of constant and never-ending improvement. She believes that to continue being a leader in the market, companies need to constantly be evolving, innovating, and disrupting. This requires a high level of self-reflection but also a willingness to grow, stay humble, and accept feedback. Kelly notes that a growth mindset is really about looking at things through a long-term lens instead of focusing solely on short-term gains.

Diverse teams are more successful

From the outset, Benevity’s founder made it a priority to build a diverse team, not by setting specific targets, but by building a culture of inclusive behaviours and solid values. The company’s team is now 51% women and 30% BIPOC, which Kelly says has directly translated into a higher performing business. Kelly referenced some of the built-in behaviors that help Benevity maintain this inclusive culture, such as a progressive parental leave program and gender pay equity initiatives.

CIBC Innovation Banking is a trusted financial partner to entrepreneurs and investors. Get in touch with our team at cibc.com/innovationbanking.

This episode of The CIBC Innovation Banking Podcast was produced by Quill.

Originally released on November 15 2023, this episode of The CIBC Innovation Banking Podcast is part of our renewed focus on highlighting exceptional conversations within the American Innovation Economy. Join us as we revisit these insightful discussions and shine a light on the ongoing innovation that shapes our industry.

According to Marcos Torres, investing is more serious than getting married. The CFO of Huntress, a managed security platform developed by former NSA employees, says that investing just isn't about money. He looks for partners who he can work with long-term, because he knows it can be far more difficult to get someone out of a company than of a marriage. Join him and host Micheal Hainsworth as they delve into what Marcos has learned on his journey from private equity owned business operator turned CFO, raising equity before you need it, and the nonlinear growth of organizations. 

You need more than just a plan B

Marcos stresses the significance of having not only plan A and B, but also plan D. Too many entrepreneurs seek cash only when they are in trouble, but Marcos advocates for "digging the well before you're thirsty." By seeking partners, building relationships, and raising equity in advance, you position yourself to find the right investors and partners for your business.

Find the intersection of pain points

Marcos knows that every customer's pain points will be unique to their business. Companies may belong to the same category, but that doesn't mean the issues they need to address are identical. That’s why he encourages entrepreneurs to find the intersection of the pain points across the category they are targeting. Huntress focuses on small to medium businesses that live under the ‘cyber security poverty line,’ and by finding commonalities in their security pain points, has built a product that can scale and build a robust customer base. 

People are the most expensive part of software

When tackling a problem, Marcos and his team prioritize technology. They first identify the problem and how technology can solve it, then consider the people involved. People are the costliest aspect of technology, so optimizing the process before identifying the required team members helps create a scalable business.

CIBC Innovation Banking is a trusted financial partner to entrepreneurs and investors. Get in touch with our team at cibc.com/innovationbanking.

Morad Elhafed and the rest of the team at Battery Ventures in Boston believe that it's time to get back to fundamentals and build durable and scalable businesses. He is joined by Andrew Phillips, managing director in Boston of CIBC Innovation Banking. Morad and Andrew share their insights into the current investment landscape, how investors identify high-quality companies, and why Boston has become a hub of talent and investment.

Every dollar needs justification 

In today’s investment landscape, investors and founders need to justify every dollar. Investors are looking for scalable and durable investments, and founders need to be able to prove that they are using funding wisely. 

Innovation comes from everywhere

Traditionally, most tech innovation was coming out of Silicon Valley, but today, it's coming from around the world. 

Looking for leaders in the market

Morad says he and his team search for leaders in their markets, whether they are small or niche. Leaders often have strong leadership and a clear path to profitability. 

CIBC Innovation Banking is a trusted financial partner to entrepreneurs and investors. Get in touch with our team at cibc.com/innovationbanking.

In this episode, Krishna Srinivasan, the founding partner at LiveOak Venture Partners, and Jonathan Schupack, executive director and market lead for CIBC Innovation Banking in Texas,  share their insights and experiences about the challenges and triumphs faced by startup entrepreneurs in the lone star state. Join us as we uncover the secrets of successful entrepreneurship. Drawing parallels between climbing mighty mountains and building ground breaking businesses, discover the resilience, innovation and collaborative spirit that define the Texan startup scene.

The power of cross-pollination

Krishna sees parallels between mountain climbing and entrepreneurship. Taking that first step, whether on a mountain or in a business, is crucial. The challenges faced by startup entrepreneurs to climb a virtual mountain require us to break down the journey into smaller, manageable steps, celebrating every little victory and constantly striving to improve. Reflecting on what works and what doesn't is key to not giving up before the peak. That's reflected in the startup community in Texas. It's a diverse economy and there is a supportive ecosystem. There's a combination of deep industry knowledge and technology talent that makes Texas a thriving hub for startups and innovation.

Sustainability is key

Krishna stresses the importance of building sustainable businesses, pointing out how excessive capital can mask underlying issues. He advises entrepreneurs to focus on product market fit before expanding into sales and marketing efforts, advocating for a sequential approach, the need for flexibility in adapting to changing market conditions and being prepared for shifting goalposts and fundraising efforts is critical for success

There is a need for native later-stage capital

Jonathan says that while there is a bit of a slowdown in VC funding, the Texas innovation economy remains resilient, with a diverse ecosystem and opportunities for growth. However, he notes a gap in native later stage capital, suggesting that while the state attracts attention, there's room for increased investment from within Texas. 

CIBC Innovation Banking is a trusted financial partner to entrepreneurs and investors. Get in touch with our team at cibc.com/innovationbanking.

In a conversation with host Michael Hainsworth, Andrew Waitman, CEO of Assent, a data management platform that informs and guides ESG strategy, delves into the evolving landscape of ESG (Environmental, Social, and Governance), and the importance of responsible supply chain management. He underscores the growing scrutiny from stakeholders, investors, and the public, who now prioritize ESG and sustainability in their decision-making processes. Andrew warns that organizations failing to adapt will encounter repercussions both in terms of their reputation and financial standing.

Best practice is no incidents 

When questioned about the significance of investing in ESG, Andrew draws a parallel with cybersecurity. In the realm of cybersecurity, organizations aim to prevent security breaches through investment in programs and systems. Similarly, in the context of ESG, proactive investment is imperative for uncovering and addressing issues early, and averting potential financial and reputational consequences down the road.

ESG reporting will be the new financial reporting

Andrew highlights the century-long evolution of strictly regulated financial reporting and foresees a similar trajectory for ESG reporting. In the near future, Andrew believes companies are likely to face similar mandates to disclose their sustainability practices.

Founders are responsible for setting their values

Andrew asserts that it falls upon founders to integrate ESG and sustainability into their organizations and disclose these values to stakeholders, employees, and the broader public. He underscores that this integration has become vital for attracting investment and fostering organizational growth. 

CIBC Innovation Banking is a trusted financial partner to entrepreneurs and investors. Get in touch with our team at cibc.com/innovationbanking.

Bow River Capital is an employee-owned diversified investment platform that specializes in the lower middle market. John Raeder, the Vice Chairman and Head of Software Investments, launched the Maiden Fund in 2018, a Software Growth equity fund at Bow River, which was oversubscribed by $160 million dollars. John focuses on what he sees as a capital gap in the lower middle market, helping SaaS companies grow from $5 to $50 million by strategically investing to accelerate their growth. Clearly, his strategy is working, as five of Bow River’s seven SaaS companies are growing subscription revenues at 100%, and Bow River is one of the top ten funds in the US. 

You can't fix bad industries 

John stresses that while you can fix bad companies, you can't fix bad industries. This perspective drives the efforts of John and the Bow River Capital team in rigorously evaluating and scrutinizing industries before investment. He and his team are attracted to companies in human capital management, fintech and construction tech because these technologies help solve operational efficiencies and improve cost structure monitoring.  By exercising caution during periods of prosperity, investors can minimize the effects of inevitable downturns. 

Founders should lean on the expertise of their investors

John says that founders need to trust and rely on the expertise of their investors. The Bow River team has 80 years of operational experience and puts each company they plan to invest in through a rigorous diligence process. Once they’ve decided to invest, Bow River Capital focuses on building strong relationships with its founders. This approach ensures that, in times of adversity, established relationships serve as valuable resources, offering guidance and specialized knowledge.

You can’t brand your way to growth

John believes that branding alone cannot grow a company from $5 to $50 million. When investing, John and his team don’t invest in TV commercials or print ads. Instead, they allocate roughly 40% of the capital to sales and marketing acceleration and roughly the same to innovation and product-led growth. 

CIBC Innovation Banking is a trusted financial partner to entrepreneurs and investors. Get in touch with our team at cibc.com/innovationbanking.