Why Value Creation?
Most people think that Venture capital is all about investments; and to be a great VC you need to allocate your best resources to the investment process in order to — attract the best possible opportunities, perform the best possible due diligence etc. Afterward, based on that thesis, your life becomes easy since good companies need no help, they do not have crisis events you have to deal with, amazing returns will simply happen.
Well, I am afraid that at least for me, life is quite different. I never met a company that had no challenges, no problems to solve, no scary downhill experiences. Maybe I was simply unlucky, but I never saw an ‘easy’ ride. To me, being a good investor was never about investing in a company that will be ‘problem free’. To me it was all about understanding the obstacles, containing them, and providing support to the founders to build a winning organization.
When we founded Glilot Capital, almost eight years ago we had this vision. We wanted not only, to provide capital, but also to become a real partner and help the entrepreneurs solve any burning issues- from finding initial clients to figuring out strategic directions and more. Founding a VC that provides an on-going crucial support to the entrepreneurs we invest in, a VC that has its companies’ back and creates a real value to the companies: from closing deals with strategic customers, helping with talent acquisition and to figuring out the product-market fit.
We started like a real startup — two founders, a small office in Tel Aviv, no employees. This worked very well for a while. But since then eight years later we have come to the understanding that we can’t execute our vision by ourselves. With dozens of investments, a distinguished board of experts, and a global network of Fortune 1,000 organizations, we have decided to recruit a team that will be focused on our portfolio companies alone and will execute our initial goal.
That is exactly where our Value Creation team enters. Its role is to create the infrastructure to grow and, manage our corporate relationships better so that our portfolio companies will benefit from it even more. By no means does this mean that we (the GCP founders and managing partners) will stop working for the companies. On the contrary, we are adding this functionality to allow us to invest more time with the companies and to better leverage the infrastructure that we have already built.
To me, it’s clear that no matter what your investment strategy is, in such a competitive market a good investor must bring more than simply funds to the table. As any entrepreneur of a young and still unproven startup knows, running it can be the loneliest job on the planet. Whatever we as GCP can do to help, will significantly increase the likelihood of success.
Contact us to find out how we can help you