CIBC Innovation Banking Podcast

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.

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.

Malcolm Locke, CFO of UK-based B2B software service company Egress, sits down to discuss Brexit, expanding to North America and why the UK is still attracting investments. He’s joined by CIBC Innovation Banking’s Managing Director for UK & Europe, Sean Duffy, who adds his valuable expertise to the conversation. In a post Brexit and high-inflation environment, how can UK based firms grow and expand? Listen to this episode to find out. 

Access to talent is critical

Malcolm says that Brexit has impacted software companies' access to talent. The European job market has traditionally been critical for talent acquisition, so UK based companies are re-evaluating their strategies. And while they can’t easily recruit from Europe, they also can’t easily send their trained employees to these markets either. That’s why many UK based companies are turning their attention across the pond to the  North American market. 

It's about efficiency, not growth

The era of ‘free money’ is over, and so is the mentality of growth at all costs. Malcolm and Sean say that investors are looking for efficiency. They will invest in companies that are using their capital wisely and making their cash impactful. 

There is still an active funding market

Despite the current market conditions, especially those in the UK, there is still funding to be had. As Sean says, money can’t just sit around. Companies need to have high parameters and show investors they aren’t cash burners. 

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

CIBC London Branch (Reg. no. 141285) is authorised by the Prudential Regulation Authority and subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. Registered at 150 Cheapside, London EC2V 6ET.

Maria Pacella has over two decades of experience investing in emerging growth technologies, and thinks that the best venture capitalists have a range of experiences gained through working in different roles. As an investor, Maria looks for three things: people, product and pent-up demand. She would prefer to invest in a strong team and founder with a smaller market than one with a large market and weak team, and brings this people-first approach to everything she does. In this episode, join host Michael Hainsworth as he and Maria dive into the Canadian investment landscape, what the current economic climate means for venture capital, and why now is the best time to start a business. 

It's all about the people.

Maria's journey to venture capital was anything but straightforward, but she embraced the learning opportunities along the way. She emphasizes that your career is shaped more by what you gain from the journey, rather than formal education alone. Additionally, she advocates for corporate cultures that prioritize diversity of thought in decision-making, believing that such cultures flourish. 

People, product, and pent-up demand.

A mentor once shared valuable advice with Pacella - a good investment comprises three essential elements: people, product, and pent-up demand. Taking this guidance to heart, she seeks out products backed by exceptional teams with smart capital allocation strategies. She also looks for products that offer tangible value propositions and address pressing problems. Especially in the current challenging climate, entrepreneurs and products that meet these criteria are more likely to attract investment and achieve success.

Now is the best time to start a business. 

In today's economic climate, the era of "free money" has come to an end. Entrepreneurs now face greater challenges in securing capital, while investors have become more discerning with their investments. Pacella believes that this situation calls for businesses to be capital efficient and deeply focused on their mission and value proposition. Companies that can thrive amidst these conditions are well-positioned for future growth and success. 

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

Angela Tran didn’t set out to be a venture capitalist; she wanted to be an engineer. However, she's leveraged the skills she learned as an engineer to help build Version One Ventures with partner Boris Wertz, a venture capital firm that has invested in some of today's biggest start-ups. Angela uses her background to approach problems from a unique perspective to find and invest in companies in their very earliest stages. She looks for founders who are driven by problems they themselves have experienced- and who will stop at nothing to solve them. 

Open to Opportunities 

Angela's journey toward her current role involved embracing every opportunity that came her way. She never turned down meetings, believing that each encounter could lead to valuable connections. Angela emphasizes the significance of the people she has met along the way and the  pivotal role they have had in shaping her career. 

Know Your Mission 

Angela and Boris share a strong inclination toward mission-driven founders who strive to address immediate problems. d She observes that many founders tend to focus on macro trends and problems that lack the imperative for change. In the absence of reliable metrics during early-stage investments, Angela and Boris instead concentrate on assessing the potential impact a company can have on the world. They focus on  “who” and “why now” principles.

Think outside the box

When she first met Boris, Angela created a dataset to try to uncover what startups would be successful. While it didn’t work- Boris appreciated her out-of-the-box thinking.. When approached by entrepreneurs, Angela is drawn to individuals who exhibit that same determined drive to solve problems in innovative and captivating ways.

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

cibc.com/innovationbanking